AI in Automotive Market to Grow 27.5% Annually Through 2030

"Report Analyzes Key Drivers, Trends, and Strategic Moves Shaping the AI in Automotive Market, Including ESG Initiatives, Patent Landscape, Competitive Dynamics, and the Impact of U.S. Tariffs"

Boston, Dec. 17, 2025 (GLOBE NEWSWIRE) -- According to the latest study from BCC Research, “AI in Automotive: Global Markets” is projected to increase from $6.2 billion in 2025 to $21 billion by the end of 2030, at a compound annual growth rate (CAGR) of 27.5% from 2025 through 2030.

This report provides a comprehensive analysis of the global market for automotive AI, segmenting it by offering, technology, process, application, vehicle type, propulsion, and connectivity. It covers the regions of North America, Europe, Asia-Pacific, and the Rest of the World, with insights into the market in major countries such as the U.S., Canada, China, Japan, India, Germany, France and the U.K. The report features profiles of leading companies, including their financials, product portfolios, competitive strategies, and ESG initiatives. It also examines macroeconomic influences (such as the tariffs imposed by the U.S.), emerging technologies, and patent trends.

This report is especially relevant now as artificial intelligence is rapidly transforming the automotive industry by enhancing vehicle safety, improving traffic flow, and enabling smarter, more efficient transportation systems. AI-powered features like predictive maintenance help detect issues early, reducing downtime and extending vehicle lifespan. As the industry shifts toward automation and intelligent mobility, understanding the current market landscape, emerging technologies, and strategic moves of leading companies is crucial for staying competitive and informed.

The factors driving the market’s growth include:

Consumer Demand for Automated Vehicles: Consumers are increasingly seeking vehicles with autonomous features that offer greater safety, convenience, and comfort. This demand is driven by a desire for reduced driving stress, improved traffic management, and tech-enhanced mobility, especially among younger and urban populations.

Government Support for AI in the Automotive Industry: Governments worldwide are promoting the adoption of AI in vehicles through incentives, safety regulations, and infrastructure investments. Their support helps accelerate innovation in autonomous driving, smart traffic systems, and vehicle connectivity, making AI integration more viable for manufacturers.

Enhancing In-Car Experiences: AI is transforming the driving experience by enabling personalized settings, intelligent voice assistants, and predictive vehicle maintenance. These innovations make driving more enjoyable, efficient, and user-friendly, boosting consumer satisfaction and brand loyalty.

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Report Synopsis

Interesting facts:

• AI integration in the automotive sector is accelerating as automakers add innovative features to boost safety, efficiency, and the user experience. This adoption supports advances in driver-assistance and autonomous driving systems.

• AI helps the industry move toward sustainability by making vehicles more fuel-efficient, improving battery and energy management, and enabling predictive maintenance. These AI-driven improvements lower emissions and reduce waste across the vehicle lifecycle.

• Governments worldwide are promoting AI adoption in the automotive industry. They are offering financial incentives, setting safety standards, and developing regulations that foster innovation while maintaining reliability and cybersecurity in AI-equipped vehicles.

Emerging startups:

• AEye Inc. provides high-performance sensing solutions for autonomous vehicles, ADAS, and smart infrastructure. Its 4Sight Intelligent Sensing Platform enables real-time adaptive scanning, offering enhanced accuracy and long-range perception for safer and more efficient mobility.

• Edvantis develops AI-powered automotive solutions, cloud technologies, and big data analytics. The company supports enterprises of all sizes with scalable software, promoting digital transformation throughout the automotive technology landscape.​

• Eyeris is a software and AI technology company, focused on in-cabin sensing and driver monitoring systems for the automotive industry. Its solutions use advanced facial expression analysis and vision AI to detect driver inattentiveness, distraction, and fatigue, enhancing the vehicle's safety and user experience.

The report addresses the following questions:

1. What are the projected size and growth rate of the market?

• The global market for AI in automotive was valued at $5.2 billion in 2024 and will reach $21 billion by the end of 2030 with a CAGR of 27.5%.

2. What factors are driving the growth of the market?

• Increasing consumers demand for automated vehicles.
• Government support for the integration of AI in the automotive industry.
• Increasing focus on enhancing in-car experiences.

3. What market segments are covered in the report?

• The market is segmented based on offering, technology, process, application, vehicle, propulsion, connectivity, and region.

4. Which offering segment will be dominant through 2030?

• The software segment will dominate the market through 2030.

5. Which region has the largest market share?

• North America holds the largest share of the global market.

6. What are the challenges and opportunities in the market?

• Challenges include:

• Data privacy and cybersecurity risks.
• High development & integration costs.

• Opportunities include:

• Demand for fleet mobility services.
• Increasing use of AI in vehicle design.

Market leaders include:

• ADVANCED MICRO DEVICES INC.
• CERENCE INC.
• COGNATA
• CONTINENTAL AG
• HAILO TECHNOLOGIES LTD.
• HERE
• IBM CORP.
• INTEL CORP.
• MICRON TECHNOLOGY INC.
• MICROSOFT
• NVIDIA CORP.
• QUALCOMM TECHNOLOGIES INC.
• ROBERT BOSCH GMBH
• SCALE AI INC.
• WAYVE

Related reports:

AI Disruption: A Global Overview: This report explores how artificial intelligence is reshaping industries, organizations, and societies across technological, operational, customer-facing, and competitive dimensions. It highlights trends like AI-native platforms, generative AI, robotics, and automation, and their impact on workflows, supply chains, and decision-making. Real-world use cases span healthcare, finance, manufacturing, retail, education, and transportation. The study also maps regional AI maturity, investment, talent, and policy landscapes, offering a global view of disruption and evolution.

Global Edge AI Market: This report analyzes the global edge AI market, focusing on offerings, end-user industries, and regional dynamics across North America, Europe, Asia-Pacific, and the Rest of the World. It analyzes market drivers, challenges, emerging technologies, patent trends, and the competitive strategies of leading companies. The study also highlights ESG initiatives and concludes with detailed profiles of major players and their technological approaches.

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