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October 2025
The agile development in automotive market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. The growing demand for advanced software from the automotive sector to enhance functional efficiency along with rapid investment by automakers for deploying cloud-based solutions in their manufacturing facilities has boosted the market expansion. Additionally, the increasing emphasis of software brands for providing SaaS to EV makers coupled with surging demand for luxury vehicles in developed nations is playing a vital role in shaping the role in shaping the industrial landscape. The technological advancements in agile analytics solutions is expected to create ample growth opportunities for the market players in the future.
The agile development in automotive market is driven by the growing adoption of agile methodologies in the EV sector coupled with rapid focus of automakers on flexibility and adaptability. The agile development in automotive refers to the application of iterative, cross-functional software and systems engineering practices across vehicle programs and mobility platforms. It integrates Scrum/SAFe/Kanban with model-based development, CI/CD, DevSecOps, and compliance (ASPICE, ISO 26262, ISO/SAE 21434) for accelerating feature delivery for E/E architectures, ADAS/AD, infotainment, connectivity, electrification, and manufacturing IT/OT. Engagements span consulting, coaching, toolchain enablement, and software delivery via global delivery models aligned to OEM and Tier-supplier program milestones. This market is expected to rise significantly with the growth of the EV sector in different parts of the world.
| Metric | Details |
| Market Drivers | Growing demand for advanced software, cloud-based solutions, and increasing adoption of agile methodologies in EVs. |
| Leading Region | Europe |
| Market Segmentation | By Service, By Methodology, By Client Type, By Delivery Model, By Toolchain Focus, By Contract Type, By Application Lifecycle Stage and By Region |
| Top Key Players | NVIDIA, Bosch, Elektrobit, ETAS, Vector Informatik, dSPACE, KPIT Technologies, Tata Elxsi |
The major trends in this market consists of partnerships, opening of automotive R&D centers and collaborations.
The agile software development & integration services segment dominated the market with a share of around 52%. The increasing emphasis of automotive companies for enhancing agile software development & integration services has driven the market expansion. Also, numerous applications of agile software for enhancing several features such as autonomous driving and connected car services is playing a prominent role in shaping the industrial landscape. Moreover, partnerships among automotive brands and software developers to enhance agile software development is expected to accelerate the growth of the agile development in automotive market.
The DevOps / CI/CD & DevSecOps Enablement segment is expected to expand with the highest CAGR of 24% during the forecast period. The increasing focus of automotive brands for enabling secure software development for connected vehicles and embedded systems has boosted the market growth. Also, the growing application of DevOps for accelerating the deployment of software-driven vehicle features such as advanced driver-assistance systems (ADAS) and connected services is contributing to the industry in a positive manner. Moreover, DevSecOps helps in integrating security into the entire software development lifecycle, that helps automakers to build secure, reliable, and compliant connected vehicles by identifying cyber threats and vulnerabilities is expected to propel the growth of the agile development in automotive market.
The scaled agile framework (SAFe) segment led the market with a share of 46%. In the automotive sector, SAFe's helps in accelerating complex software and hardware development along with improving quality and productivity by reducing time-to-market, thereby driving the market expansion. also, numerous benefits of safe’s including increased productivity and efficiency, enhanced quality, effective management of large-scale projects and some others is playing a prominent role in shaping the industrial landscape. Moreover, collaborations among automotive companies and software companies to deploy scaled agile framework (SAFe) in manufacturing facilities is expected to boost the growth of the agile development in automotive market.
The Kanban / Scrumban segment is expected to rise with the fastest CAGR of 21% during the forecast period. The rising use of Scrumban solutions in the automotive sector for software development has boosted the market growth. Also, the increasing application of Kanban software for optimizing production of automotive components by creating a visual workflow for managing material replenishment and assembly line sequencing is playing a vital role in shaping the industrial landscape. Moreover, numerous advantages of Kanban / Scrumban solutions such as enhanced visualization, improved workflow efficiency, flexibility, constant improvement, decreased lead times and some others is expected to propel the growth of the agile development in automotive market.
The OEMs segment led the market with a share of 45%. The rising focus of automotive OEMs for deploying advanced software in their manufacturing centers has boosted the market expansion. Also, rapid investment by OEMs for opening up new retail outlets is playing a crucial role in shaping the industrial landscape. Moreover, collaborations among OEMs and software providers to integrate Agile solutions in their R&D centers is expected to boost the growth of the agile development in automotive market.
The tier-1 suppliers segment is expected to expand with the highest CAGR of 22% during the forecast period. The increasing preference of automotive brands to adopt advanced software for enhancing the designing and manufacturing of automotive parts has driven the market growth. Also, rapid investment by software companies to deliver agile software to tier-1 suppliers is contributing to the industry in a positive manner. Moreover, partnerships among tier 1 suppliers and software companies to develop advanced agile solutions is expected to foster the growth of the agile development in automotive market.
The offshore / global delivery segment led the industry with a share of 48%. In the automotive sector, offshore delivery refers to the practice of transferring unique business functions to any dedicated facility in another country, for leveraging less labor cost, superior access to specialized global talent, achieving 24/7 productivity and some others has boosted the market expansion. Also, rapid adoption of these delivery models by automotive startups to lessen their expense burden of software is playing a prominent role in shaping the industrial landscape. Moreover, collaborations among international software companies and automotive brands for deploying agile software in automotive production centers is expected to foster the growth of the agile development in automotive market.
The nearshore segment is expected to rise with the highest CAGR of 195 during the forecast period. The rising emphasis of automotive companies to adopt advanced software from nearby providers has boosted the market growth. Additionally, numerous advantages of these delivery model such as enhance efficiency, cost savings, superior management control, fast response time and some others is expected to drive the growth of the agile development in automotive market.
The ALM Platforms segment led the market with a share of 41%. ALM platforms are used in the automotive industry for managing the entire lifecycle of vehicle software and electronics by ensuring safety, compliance, and collaboration across complex systems has boosted the market growth. Also, rapid investment by automotive companies for deploying ALM platforms in their manufacturing plants is playing a vital role in shaping the industrial landscape. Moreover, numerous advantages of ALM platforms including improved efficiency & collaboration, enhanced quality & reduced risk, cost savings & compliance, greater flexibility & customer satisfaction and some others is expected to boost the growth of the agile development in automotive market.
The CI/CD Pipelines & Artifact Repos segment is expected to grow with the highest CAGR of 23% during the forecast period. The rising use of CI/CD pipelines and Artifact Repos in the automotive sector for automating and standardizing software development has boosted the market expansion. Additionally, the increasing application of these tools in the EV industry for enhancing reliability and scalability is playing a crucial role in shaping the industrial landscape. Moreover, numerous advantages of CI/CD Pipelines & Artifact Repos tools such as improved quality, increased productivity, reduced risk, enhanced security and some others is expected to drive the growth of the agile development in automotive market.
The time & material segment led the market with a share of 58%. A time and materials (T&M) contract in an agile setting is an agreement where a client pays the vendor related to time worked and materials used in the automotive sector, thereby driving the market growth. Also, partnerships among automotive companies and software developers for deploying Agile in automotive manufacturing centers is playing a vital role in shaping the industry in a positive manner. Moreover, numerous advantages of time & material contract such as flexibility, adaptability, fast project initiation, enhanced client control, scalability, superior quality and some others is expected to propel the growth of the agile development in automotive market.
The managed services / outcome-based segment is expected to expand with the fastest CAGR of 18% during the forecast period. The growing emphasis of automotive brands for adopting managed and outcome-based services has boosted the market expansion. Additionally, collaborations among luxury car manufacturing brands and managed service providers to deploy advanced agile solutions in manufacturing centers is contributing to the industry in a positive direction. Moreover, several benefits of managed services / outcome-based services including cost-effectiveness, 24*7 availability, technical expertise, handling security breaches, data compliance management and some others is expected to foster the growth of the agile development in automotive market.
The series development (SOP-driven) segment led the market with a share of 55%. Series development (SOP-driven) in agile is a hybrid approach in the automotive sector that merges agile development methodology with traditional and hardware-oriented start of production (SOP) timeline, thereby driving the market expansion. Also, this model allows car manufacturers for incorporating the flexibility and iterative nature of agile for software development is playing a vital role in shaping the industry in a positive direction. Moreover, numerous advantages of SOP-driven agile platform such as decoupling hardware and software timeline, high quality, enhanced customer satisfaction, constant software improvement and some others is expected to boost the growth of the agile development in automotive market.
The Post-SOP Maintenance / OTA feature roadmaps segment is expected to expand with a CAGR of 20% during the forecast period. The increasing emphasis of automotive companies to update any vehicle’s software after being sold has boosted the market growth. Also, the surging use of agile methodologies in luxury vehicles for enhancing safety and security through OTA updates is playing a crucial role in shaping the industrial landscape. Moreover, collaborations among automotive brands and software companies to enhance post-SOP maintenance is expected to propel the growth of the agile development in automotive market.
Europe led the agile development in automotive market with a share of 44%. The growing demand for luxury cars in several countries including Germany, Italy, Denmark, France and some others has boosted the market expansion. Additionally, rapid investment by automakers to deploy cloud-based agile solutions in their manufacturing facilities to enhance designing and manufacturing process is playing a prominent role in shaping the industrial landscape. Moreover, the presence of various market players such as Bosch, dSPACE, Vector Informatik and some others is expected to drive the growth of the agile development in automotive market in this region.
Germany and UK are the prominent contributors in this region. In Germany, the market is generally driven by the increasing demand for autonomous vans coupled with rising emphasis of government to enhance vehicular safety. In UK, the growing sales of luxury SUVs along with rapid investment by automakers for integrating advanced software in their research centers is playing a vital role in shaping the industry in a positive direction.
Asia-Pacific is expected to grow with the highest CAGR of 29% during the forecast period. The increasing sales of electric cars in various nations such as India, China, Japan, South Korea and some others has boosted the market expansion. Also, increasing focus of automotive brands to develop self-driving cars coupled with rise in number of software development companies is contributing to the industry in a positive manner. Moreover, the presence of numerous market players such as KPIT Technologies, Tata Elxsi, Infosys and some others is expected to boost the growth of the agile development in automotive market in this region.
India and China are the major contributors in this region. In India, the market is generally driven by the rise in number of automotive startups coupled with rapid development of the software industry. In China, the rising investment by software companies for developing advanced solutions for the automotive sector along with surging sales and production of passenger vehicles is contributing to the industry in a positive manner.
| June 2025 | Announcement |
| Regu Ayyaswamy, Senior Vice President & Global Head, Internet of Things (IoT) and Digital Engineering at TCS | These new centers will position TCS at the forefront of automotive innovation, enabling us to deliver state-of-the-art solutions in autonomous driving and advanced cockpit systems. This expansion reaffirms our commitment to leading the transformation in the Software-Defined Vehicles space. |
| May 2025 | Announcement |
| Ian Riches, the VP of global automotive practice at TechInsights | TechInsights forecasts that in 2030, 90% of the vehicles produced will have at least one domain controller, zonal controller or high-performance central computing unit, Hypervisors that offer rapid and reliable performance with modular design, such as the QNX Hypervisor 8.0, are thus vital to unlocking the potential of these platforms and making the software-defined vehicle a reality. |
| September 2025 | Announcement |
| Jagan Rajagopalan, Head of Strategy and Portfolio at Elektrobit Automotive GmbH | At Elektrobit, we are proud to bring our proven software expertise to the SDV Accelerator, thereby supporting the shift to software-defined vehicles. By combining our Virtual IVI, AUTOSAR-based platforms, and cloud-native development tools with HERE’s advanced location intelligence, we help enable developers to design, test, and validate next-generation digital cockpit experiences entirely in the cloud. This collaboration reflects Elektrobit’s commitment to open ecosystems, modular architectures, and delivering the speed, safety, and scalability the industry needs to innovate with confidence. |
| January 2025 | Announcement |
| Heiko Huettel, vice president of Software Products at Harman | Software is changing everything about the way vehicles are built and experienced. With Ready CQuence Loop and Ready Link Marketplace, we want to make this change meaningful for developers, auto makers and consumers by focusing on the essentials – making it easier to deliver and receive better in-vehicle experiences for everyone. |
| February 2025 | Announcement |
| Tom Allen, the CEO of AutoSonix | We embarked on a journey to build our cloud-based ADAS simulation software from the ground up with CI/CT processes in mind, addressing the software development challenges our automotive customers face today. Whether aiming to increase test coverage, shorten test cycles, or automate workflows, our VTDx solution offers significant benefits. |
The agile development in automotive market is a highly competitive industry with the presence of several dominating players. Some of the prominent companies in this industry consists of dSPACE, KPIT Technologies, Tata Elxsi, Bosch, Elektrobit, ETAS, Vector Informatik, HCLTech, TCS, Infosys, Wipro, Luxoft, Capgemini Engineering, Accenture (Industry X), AVL and some others. These companies are constantly engaged in developing agile solutions for the automotive sector and adopting numerous strategies such as partnerships, collaborations, business expansions, launches, acquisitions, joint ventures and some others to maintain their dominance in this industry.
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By Service
By Methodology
By Client Type
By Delivery Model
By Toolchain Focus
By Contract Type
By Application Lifecycle Stage
By Region
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October 2025
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