Computing and AI for Automotive Market (Component - Hardware, Software, and Service; Vehicle Type - Passenger Vehicles, and Commercial Vehicles; Application - Autonomous Driving / Advanced Driver Assistance Systems (ADAS), Predictive Maintenance, In-vehicle Infotainment, Fleet Management, Driver Behaviour Monitoring, Traffic and Navigation Assistance, Smart Parking, and Telematics): Global Industry Analysis, Trends, Size, Share and Forecasts to 2032

Computing and AI for Automotive Market (Component - Hardware, Software, and Service; Vehicle Type - Passenger Vehicles, and Commercial Vehicles; Application - Autonomous Driving / Advanced Driver Assistance Systems (ADAS), Predictive Maintenance, In-vehicle Infotainment, Fleet Management, Driver Behaviour Monitoring, Traffic and Navigation Assistance, Smart Parking, and Telematics): Global Industry Analysis, Trends, Size, Share and Forecasts to 2032

Report Code: IGR01751 Category: Electronics, ICT & Semiconductors Published: June, 2025

A recent report published by Infinium Global Research on computing and AI for automotive market provides in-depth analysis of segments and sub-segments in the global as well as regional computing and AI for automotive market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional computing and AI for automotive market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of global computing and AI for automotive market.

Market Insight:

The global computing and AI for automotive market was valued at USD 7.85 billion in 2023 and is expected to reach USD 313.68 billion in 2032, with a CAGR of 52.72% during the forecast period 2024-2032.

The Computing and AI for Automotive market is experiencing significant growth due to several trends. The rapid growth in edge AI computing in vehicles, enabling faster decision-making for autonomous driving and advanced driver assistance systems, is becoming mainstream. AI-based predictive maintenance and personalization are also becoming mainstream. The rise of software-defined vehicles (SDVs) is transforming cars into upgradable platforms with AI continuously improving performance, safety, and infotainment. Collaborations between automakers, tech companies, and semiconductor leaders are intensifying to co-develop AI chips, simulation tools, and autonomous mobility ecosystems. The Automotive Computing and AI market faces challenges such as high development costs, long validation cycles, regulatory uncertainties, and limited infrastructure. Companies are adopting modular and scalable AI computing platforms, leveraging simulation-based testing for validation, and forming strategic partnerships to share R&D burdens. They are also investing in cloud-edge hybrid architectures and over-the-air (OTA) updates to enable continuous improvement of AI models without extensive hardware changes. These efforts aim to address the challenges of managing real-time data and ensuring cybersecurity in connected systems.

The automotive market is experiencing a surge in demand for autonomous and semi-autonomous vehicles, requiring powerful AI platforms to process sensor data in real-time and make split-second decisions. Companies such as NVIDIA Corporation, Intel Corporation, and Qualcomm Incorporated are developing automotive-grade AI chips and scalable computing architectures to address this demand. Investments in simulation and validation tools are also being made to test AI systems under diverse scenarios. Partnerships between automakers and AI solution providers are intensifying to accelerate development cycles and ensure regulatory compliance. As cities adapt infrastructure to support autonomy, trust in driverless technologies is expected to grow. Additionally, advancements in advanced driver assistance systems (ADAS) are driving the growth of computing and AI in the automotive market. These systems require real-time AI processing to enhance driver safety and comfort. As regulatory bodies mandate stricter vehicle safety requirements, the demand for intelligent ADAS systems with robust AI capabilities intensifies. Automakers are partnering with tech companies to integrate advanced AI processors, improve performance over time, and streamline data flow. As consumers become more aware of ADAS benefits, the integration of AI-powered ADAS is becoming a regulatory necessity and a competitive differentiator in the automotive industry.

Moreover, the integration of AI-driven systems in modern vehicles raises data privacy and cybersecurity concerns. The vast amount of sensitive data generated by these vehicles, including user behavior and performance metrics, creates a larger attack surface for malicious actors. High-profile cybersecurity incidents have increased consumer apprehension, and the lack of uniform cybersecurity standards across regions complicates compliance efforts. Governments and regulatory bodies are mandating cybersecurity management systems for vehicle manufacturers, but this requires significant investment in security-by-design principles, encryption, and threat detection systems. Until these issues are addressed, they will remain a barrier to the seamless deployment of AI and computing platforms in the automotive sector. Furthermore, the rise of electric vehicles (EVs) presents a significant opportunity for AI integration in battery management, energy optimization, and predictive maintenance. AI can improve battery life, optimize charging cycles, and maximize energy storage, enhancing vehicle performance. It can also optimize energy consumption by analyzing driving patterns and environmental factors in real time. AI-powered predictive maintenance tools can monitor key components, detecting wear and tear early, and recommend preventive maintenance. As the EV market expands, AI solutions are crucial for EV advancement, presenting a unique opportunity for both established and new EV manufacturers.

North America is leading the computing and AI for automotive market due to advancements in autonomous driving technologies, AI research, and strong public and private sector support. Major automakers such as Tesla, Inc., General Motors, and Ford Motor Company, along with tech giants such as NVIDIA Corporation, Intel Corporation, and Qualcomm Incorporated, are investing heavily in AI and machine learning technologies for automotive applications. The region's infrastructure is being upgraded to support autonomous vehicles, and the demand for electric vehicles (EVs) drives the integration of AI for battery management and energy optimization. Silicon Valley and other tech hubs are also hotspots for AI talent, giving North America a competitive edge in shaping the future of AI-driven automotive innovations. Asia-Pacific is expected to dominate the Computing and AI for Automotive market in the coming years due to its rapid adoption of advanced technologies, significant automotive production capabilities, and strong government support for electric vehicles and autonomous driving. Key players include China, Japan, and South Korea, with automakers such as BYD, Geely, Toyota, and Honda incorporating AI into their vehicle systems. The region's global manufacturing hub and tech giants such as Baidu, Inc., Alibaba.com, and Samsung Electronics Co., Ltd. also contribute to its dominance in the automotive AI industry.

Report Scope of the Computing and AI for Automotive Market:

Report Coverage Details
Market Size in 2023 USD 7.85 Billion
Market Size by 2032 USD 313.68 Billion
Growth Rate from 2024 to 2032 CAGR of 52.72%
Largest Market North America
No. of Pages 255
Market Drivers
  • The automotive market is experiencing a surge in investment in Levels 2 to 5 automation to improve safety, efficiency, and user experience in the face of rising demand for autonomous and semi-autonomous vehicles.

  • The automotive market is experiencing growth in computing and AI due to advancements in Advanced Driver Assistance Systems (ADAS) technologies, enhancing driver safety and comfort.

Market Segmentation By Component, By Vehicle Type, and By Application
Regional Scope North America, Europe, Asia Pacific, and RoW

Segment wise revenue contribution in the global computing and AI for automotive market

The report on global computing and AI for automotive market provides a detailed analysis of segments in the market based on Component, Vehicle Type, and Application.

Segmentation Based on Component

·       Hardware

·       Software

·       Service

Segmentation Based on Vehicle Type

·       Passenger Vehicles

·       Commercial Vehicles

Segmentation Based on Application

·       Autonomous Driving / Advanced Driver Assistance Systems (ADAS)

·       Predictive Maintenance

·       In-vehicle Infotainment

·       Fleet Management

·       Driver Behaviour Monitoring

·       Traffic and Navigation Assistance

·       Smart Parking

·       Telematics

Company Profiled:

·       NVIDIA Corporation

·       Intel Corporation

·       Qualcomm Incorporated

·       Robert Bosch GmbH

·       Aptiv PLC

·       Continental AG

·       Arm Ltd.

·       Huawei Technologies Co., Ltd.

·       NXP Semiconductors

·       Infineon Technologies AG

Report Highlights:

The report provides deep insights into demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the computing and AI for automotive market. Moreover, the study highlights current market trends and provides forecasts from 2024-2032. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.

Frequently Asked Questions (FAQ's)

The global computing and AI for automotive market was valued at USD 7.85 Billion in 2023.
It is likely to grow at a CAGR of 52.72% during the forecast period 2024-2032.
The global computing and AI for automotive market is estimated to reach USD 313.68 Billion by the end of 2032.
North America is anticipated to exhibit high demand for computing and AI for automotive market during the forecast period.
NVIDIA Corporation, Intel Corporation, Qualcomm Incorporated, Robert Bosch GmbH, Aptiv PLC, Continental AG, Arm Ltd., Huawei Technologies Co., Ltd., NXP Semiconductors, and Infineon Technologies AG.
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