The North America Automotive Market Report is Segmented by Vehicle Type (Passenger Cars, Light Commercial Vehicles, and More), Propulsion Type (ICE, and More), Sales Channel (OEM-Franchised Dealer, and More), Level of Automation (Level 0–1, Level 2, Level 3, and Level 4–5), and Country (United States, Canada, Rest of North America). The Market Forecasts are Provided in Terms of Value (USD) and Volume in Units.

Motor vehicle production increased in all regions in 2023. The growth rate of motor vehicle production in Europe reached 13 percent compared to the previous year. In contrast, the production value of the motor vehicle manufacturing industry in the Commonwealth of Independent Stats increased by 23 percent compared to the 2022 level. In 2023, the global production of passenger cars increased by over six million units compared with 2022.

In 2023, around 27.45 million vehicles were sold globally. This is an increase of around 13.3 percent compared to 2022 sales. The United States is the largest market for commercial vehicles that year.

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Automotive Technologies Market Size 2025-2029

The automotive technologies market size is forecast to increase by USD 263.5 billion, at a CAGR of 13.2% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of Advanced Driver-Assistance Systems (ADAS) in vehicles. This trend is being fueled by consumer demand for enhanced safety and convenience features. Additionally, advancements in semi-autonomous and autonomous vehicle technologies are transforming the automotive landscape, offering new opportunities for market participants. However, the market faces challenges as well. The lack of standard protocols in the automotive sector poses a significant obstacle to market growth, as it hinders interoperability and collaboration among stakeholders.
Companies must navigate these challenges while capitalizing on the market's potential by investing in research and development, forming strategic partnerships, and complying with regulatory requirements. To stay competitive, they must also focus on delivering innovative solutions that address consumer needs and expectations. Overall, the market presents both opportunities and challenges, requiring strategic planning and agility from industry players.

What will be the Size of the Automotive Technologies Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve at an unprecedented pace, with innovations in vehicle control algorithms, data analytics, computer vision, suspension systems, fuel efficiency, autonomous driving, steel alloys, artificial intelligence (AI), radar systems, over-the-air (OTA) updates, path planning, lithium-ion batteries, and driver monitoring systems shaping the industry's future. These advanced technologies are seamlessly integrated into various sectors, from passenger cars to commercial vehicles, and from public transportation to shared mobility services. The ongoing unfolding of market activities reveals a dynamic interplay between traditional automotive components and emerging technologies. For instance, power electronics and software-defined vehicles are revolutionizing engine management systems, while vehicle dynamics control and safety systems are enhanced by AI and sensor fusion.

How is this Automotive Technologies Industry segmented?

The automotive technologies industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Passenger cars
  Commercial vehicles


Component

  Hardware
  Software
  Services


ICE Application

  ADAS
  AutonomousDriving
  Infotainment
  BodyControl&Comfort
  Telematics
  ADAS
  AutonomousDriving
  Infotainment
  BodyControl&Comfort
  Telematics


Software Layer

  OS
  Middleware
  Application
  OS
  Middleware
  Application


Geography

  North America

    US


  Europe

    Germany


  APAC

    China
    Japan
    South Korea


  Rest of World (ROW)

By End-user Insights

The passenger cars segment is estimated to witness significant growth during the forecast period.

These technologies are primarily being adopted to meet stringent emission regulations, improve fuel efficiency, enhance safety features, and reduce production costs. The passenger cars segment, which accounts for the largest share of the automotive vehicles industry, is witnessing considerable growth due to increasing disposable income and the rising trend of shared mobility. According to the Organisation Internationale des Constructeurs Automobiles (OICA), the global production of passenger cars reached 61,598,650 units in 2022. Asia Pacific is the leading contributor to global passenger car sales and production.

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The Passenger cars segment was valued at USD 121.50 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 51% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in APAC is experiencing significant growth, with automotive lighting. China, Japan, South Korea, and India are key countries leading this growth. Telematics solutions and connected infotainment are major driving factors. In India and Japan, there is a rising trend towards ride-hailing services. Manufacturers in India are prioritizing active safety systems to enhance vehicle and driver safety. The market's evolution is marked by advancements in battery technology, autonomous driving, and connected services. Automotive cyber

The automotive industry offers a diverse range of products, including: Passenger cars Commercial vehicles Electric vehicles Autonomous and semi-autonomous vehicles Micromobility solutions (e.g., e-bikes, e-scooters) Mobility-as-a-Service (MaaS) Recent developments include: Growing interest in EV startups and partnerships between traditional automakers and tech giants

, Emergence of ride-hailing and car-sharing services, Increased focus on sustainable and eco-friendly manufacturing practices. Key drivers for this market are: Electrification and government incentives Technological advancements (autonomous driving, connected vehicles). Potential restraints include: Supply chain disruptions and raw material shortages Fluctuating fuel prices. Notable trends are: Autonomous and semi-autonomous driving capabilities Integration of AI and machine learning in vehicle design and manufacturing.

DENSO Corporation's revenue increased by about 11 percent between 2023 and 2024. The automotive supplier generated around 7.1 trillion Japanese yen in revenue in 2024, up from 6.4 trillion Japanese yen in 2023. The fiscal year end of the company is March, 31st.

In 2023, around 13.1 million commercial vehicles were produced in North America. Commercial vehicle production fell globally between 2019 and 2021 due to the COVID-19 pandemic, including North American production, but picked back up in 2022. The region remained the leading commercial vehicle producer, with around one in two commercial vehicles manufactured in North America in 2023. Trucks move the U.S. economy Pickups and light trucks such as the Ford F-450 were extremely popular in the United States, straddling commercial and personal use. Additionally, their heavy-duty counterparts sold well in a market that has active agricultural, manufacturing, and construction industries. One of the largest commercial vehicle segments in the United States was road freight, as trucks accounted for about 62 percent of freight movements in the country in 2020. U.S. truckers hauled about 10 billion tons worth of goods across large distances of the country on highways and to areas not served by rail. Slowing global demand A downturn in the global economy and its impact on commercial vehicle demand posed a concern for manufacturers in 2022. The impact of the 2020 coronavirus pandemic on the transportation and logistics industry is still being felt across the industry, with manufacturing plants continuing to struggle due to national lockdowns and global demand dropping. However, the supply chain struggled with this rise in demand as semiconductor stocks remain dwindling, leading to a global automotive semiconductor shortage which impacted manufacturers' output and inventory.

The Morocco Automotive Market Report is Segmented by Vehicle Type (Passenger Vehicles and Commercial Vehicles), Drive Type (ICE, HEV, PHEV, BEV, FCEV), Fuel Type (Gasoline, Diesel, Alternative Fuels (CNG/LPG/Biofuels)), End-Use Sector (Personal Use, Taxi & Ride-Hailing, and More), and Sales Channel (OEM-Authorized Dealerships and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

The Predictive Maintenance In The Automotive Industry market is projected to reach $XXX million by 2033, growing at a CAGR of XX% from 2025 to 2033. Increasing demand for connected vehicles, rising need for reducing vehicle maintenance costs, and growing adoption of IoT in the automotive industry are the major factors driving the growth of the market. The market is segmented based on type, application, and region. By type, the cloud-based segment is expected to hold the largest market share during the forecast period. By application, the large corporation segment is expected to hold the largest market share during the forecast period. By region, the Asia Pacific region is expected to hold the largest market share during the forecast period. Increasing vehicle production and rising demand for connected vehicles in the region are the major factors driving the growth of the market in the Asia Pacific region.

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Connected Car Market Size 2025-2029

The connected car market size is valued to increase by USD 138.96 billion, at a CAGR of 17.1% from 2024 to 2029. Increasing internet penetration and its impact on global connected car market will drive the connected car market.

Market Insights

North America dominated the market and accounted for a 37% growth during the 2025-2029.
By Connectivity - Embedded solutions segment was valued at USD 36.52 billion in 2023
By End-user - OEM segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 218.99 million 
Market Future Opportunities 2024: USD 138958.30 million
CAGR from 2024 to 2029 : 17.1%

Market Summary

The market is experiencing significant growth as the automotive industry embraces digital transformation. With increasing internet penetration worldwide, the demand for connected vehicles is surging. According to the Global System for Mobile Communications Association (GSMA), there were over 100 million connected cars in use in 2020, a figure expected to reach 250 million by 2025. This trend is driven by the launch of numerous vehicles equipped with connected technologies, including real-time traffic information, remote diagnostics, and over-the-air software updates. However, the integration of advanced technologies in connected cars poses design complexity challenges. For instance, ensuring seamless communication between various vehicle systems and external networks requires robust cybersecurity measures.
Moreover, the need for real-time data processing and low latency adds to the technological intricacy. One real-world business scenario where connected cars can bring substantial benefits is in supply chain optimization. By integrating vehicle telematics data with logistics systems, companies can track their fleet's location and condition in real-time, enabling them to optimize delivery routes and prevent maintenance-related downtime. For example, a leading logistics provider reported a 15% reduction in delivery times and a 20% decrease in maintenance costs after implementing connected vehicle technology in their fleet. Despite these advantages, addressing design complexities and cybersecurity concerns remains crucial for the continued growth and success of the market.

What will be the size of the Connected Car Market during the forecast period?

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The market continues to evolve at an unprecedented pace, with innovative technologies such as digital cockpit design, personalized driving experiences, and advanced safety features becoming increasingly standard. According to recent research, the market for connected cars is projected to grow by over 20% in the next year, underscoring the significant business implications for automakers and suppliers. This growth can be attributed to the integration of various technologies, including automatic emergency braking, adaptive cruise control, map data integration, and human-machine interface design. These advancements not only enhance the driving experience but also contribute to improved safety and compliance with regulatory requirements.
Furthermore, the development of application programming interfaces, firmware updates, and remote vehicle unlocking enables seamless connectivity and convenience for consumers. As businesses navigate this dynamic market, they must consider the implications of these trends on their product strategy, budgeting, and cybersecurity threat detection. With the increasing importance of data analytics and real-time performance metrics, companies must also prioritize network performance monitoring and data encryption methods to protect sensitive information.

Unpacking the Connected Car Market Landscape

In the dynamic realm of connected cars, GPS navigation systems enable real-time route optimization, reducing fuel consumption by up to 15% compared to traditional methods. Location-based services, integrated with infotainment systems, offer personalized recommendations and enhance user experience. Real-time traffic data, sourced via telematics systems, facilitates efficient route planning, saving businesses an average of 30 minutes per day in commuting time. Vehicle data analytics, powered by cloud-based services, provide valuable insights into fleet performance, enabling cost reduction through predictive maintenance and improved ROI. API management ensures seamless integration of connected car features with smartphone applications and IoT platforms. Data security protocols, including vehicle-to-everything communication and driver monitoring systems, safeguard sensitive information and protect against cyber threats. Over-the-air updates and remote diagnostics enable continuous improvement of connected car features, while driver behavior analysis and emergency response systems prioritize safety. Connected

The Mexico automotive market attained a volume of 63.90 Thousand Units in 2024. The market is further expected to grow in the forecast period of 2025-2034 at a CAGR of 4.50% to reach a volume of 99.23 Thousand Units by 2034. The market is being driven by the growing manufacturing and export of vehicles in the country.

Key Insights and Trends:

• By region, The Bajío is projected to register a CAGR of 4.8% over the forecast period.
• By vehicle type, sports utility vehicles are projected to grow at a CAGR of 5.0% over the forecast period.
• By engine type, hybrid and electric vehicles are expected to grow at a CAGR of 7.4% over the forecast period, due to urban air quality concerns.

Market Size & Forecast:

• Market Volume in 2024: 63.90 Thousand Units
• Projected Market Volume in 2034: 99.23 Thousand Units
• CAGR from 2025 to 2034: 4.50%
• Dominant Regional Market: Central Mexico

The global motor vehicle market, valued at $2,832,580 million in 2025, is projected to experience steady growth, exhibiting a Compound Annual Growth Rate (CAGR) of 3.0% from 2025 to 2033. This growth is driven by several key factors. Rising disposable incomes in developing economies, particularly in Asia-Pacific regions like India and Southeast Asia, are fueling increased demand for personal vehicles. Furthermore, advancements in automotive technology, such as the adoption of electric vehicles (EVs) and autonomous driving features, are stimulating market expansion. Government initiatives promoting sustainable transportation and infrastructure development in several countries further contribute to this positive trajectory. However, the market faces certain challenges. Fluctuations in raw material prices, particularly for metals and semiconductors, can impact production costs and profitability. Stringent emission regulations and the ongoing transition towards greener technologies also present significant hurdles for traditional manufacturers. The market is segmented by vehicle type (cars, buses, trucks, motorcycles) and application (household, commercial), with the car segment dominating the overall market share. Major players like Toyota, Volkswagen Group, Daimler, and others are strategically navigating these dynamics through investments in R&D, strategic partnerships, and diversification of their product portfolios. The segmentation of the market reveals a significant concentration in the car segment, which holds a substantial share of the overall market value. The commercial application segment is also experiencing significant growth, driven by the expanding logistics and e-commerce sectors. Regional analysis indicates that Asia-Pacific, particularly China and India, represents a major growth engine, while North America and Europe continue to be substantial markets, albeit with potentially slower growth rates compared to developing regions. The forecast period (2025-2033) anticipates continued expansion, though the pace might be influenced by global economic conditions and technological disruptions. Companies are investing heavily in electric and hybrid vehicle technologies to meet evolving consumer preferences and regulatory requirements. This sustained investment and innovation promise significant growth opportunities, even amidst the challenges.

The global DM in automotive market size reached USD 10.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 17.5 Billion by 2033, exhibiting a growth rate (CAGR) of 5.51% during 2025-2033. The increasing adoption of digital technologies in the automotive industry, rising demand for customization, growing focus on quality enhancement and enhanced focus on research and development (R&D) activities, represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the global DM in automotive market report, along with forecasts at the global, regional and country levels from 2025-2033. Our report has categorized the market based on type and application.

The global passenger vehicle industry, valued at approximately $2 trillion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 10.55% from 2025 to 2033. This expansion is driven by several key factors. Firstly, rising disposable incomes in emerging economies like India and Southeast Asia are fueling increased vehicle demand, particularly within the passenger car segment. Secondly, advancements in electric vehicle (EV) technology, coupled with government incentives and stricter emission regulations globally, are significantly shifting consumer preferences towards sustainable transportation options. This trend is particularly strong in regions like Europe and North America, where the infrastructure for EV adoption is comparatively more developed. Further bolstering growth are technological innovations enhancing vehicle safety, fuel efficiency, and connectivity, leading to increased consumer appeal. The industry is also witnessing a surge in the popularity of SUVs and crossovers due to their versatile nature and perceived higher value proposition. However, the industry faces certain challenges. The ongoing global semiconductor shortage continues to disrupt production timelines and affect vehicle availability. Furthermore, fluctuating fuel prices and economic uncertainties can dampen consumer confidence and impact purchase decisions. Geopolitical instability and supply chain disruptions further exacerbate these challenges. Despite these headwinds, the long-term outlook for the passenger vehicle industry remains positive, with continuous innovation, evolving consumer preferences, and sustained economic growth in key markets driving considerable market expansion throughout the forecast period. Segmentation within the industry is dynamic; the hybrid and electric vehicle (HEV, PHEV, BEV, FCEV) segment is experiencing the fastest growth, although internal combustion engine (ICE) vehicles, particularly in emerging markets, retain significant market share. Competition is fierce amongst major players like Toyota, Volkswagen, and GM, prompting continuous efforts in innovation and technological advancements to maintain market leadership. This in-depth report provides a comprehensive analysis of the global passenger vehicle industry, covering the period from 2019 to 2033. With a focus on key market trends, competitive dynamics, and future growth prospects, this report is an invaluable resource for industry stakeholders, investors, and researchers seeking to understand and capitalize on opportunities within this dynamic sector. The report leverages extensive data analysis, covering historical performance (2019-2024), current estimates (2025), and future forecasts (2025-2033) to provide a complete picture of the market's evolution. Millions of units sold are analyzed across various segments, revealing key trends and drivers influencing the industry's future. Recent developments include: December 2023: Mustang Mach-E is avaiable with electric all-wheel drive and has standard heated seats and steering wheel.December 2023: Hyundai Motor unveiled its "Strategy 2025" blueprint, outlining KRW 61.1 trillion in investments for future technology research and development (R&D) until 2025. The goal is to electrify the majority of new vehicles in key markets such as Korea, the United States, China, and Europe by 2030, with emerging markets such as India and Brazil following suit by 2035.December 2023: Toyota debuts the Corolla GR-S in Brazil. Its 2.0-liter Dynamic Force Atkinson flex cycle engine generates 177 horsepower when running on ethanol and 169 horsepower when running on gasoline, with 21.4 kgfm of torque in both cases.. Key drivers for this market are: Growing Travel and Tourism Industry is Driving the Car Rental Market. Potential restraints include: Increasing Popularity of Ride-Sharing Services Pose Challenges for the Conventional Car Rental Market. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

According to Cognitive Market Research, the global IT Spending in Automotive market size is USD 15481.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 6192.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 4644.36 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 3560.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 774.06 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 309.62 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Services held the highest IT Spending in Automotive market revenue share in 2024.

Market Dynamics of IT Spending in the Automotive Market

Key Drivers for IT Spending in the Automotive Market

Global Economic Trends Propel Market Growth

Global economic trends, including GDP growth, interest rates, and consumer confidence, significantly impact spending patterns in the automotive market. During periods of economic expansion, consumers tend to have higher disposable incomes, leading to increased demand for new vehicles and optional features. Conversely, economic downturns can dampen consumer sentiment and curb spending on big-ticket items like automobiles, prompting automakers to adjust production levels and marketing strategies accordingly. Supply chain disruptions, geopolitical tensions, and natural disasters can also influence spending within the automotive industry by affecting production capacities, raw material prices, and supply chain logistics. Uncertainties surrounding trade agreements and tariffs can further exacerbate these challenges, prompting automakers to reevaluate sourcing strategies and production footprints to mitigate risks and ensure business continuity.

Restraint Factor for IT Spending in the Automotive Market

High Cost of Treatment to Limit the Sales

One significant restraint on IT spending in the automotive market is the high cost of technological integration and development. As vehicles become more complex and connected, automakers must invest heavily in research and development to stay competitive. This includes developing advanced driver-assistance systems (ADAS), electric vehicle (EV) technology, connectivity features, and autonomous driving capabilities. The substantial upfront investment required for these technologies can strain budgets and slow down IT spending in other areas. Moreover, the automotive industry operates within a highly regulated environment, which imposes stringent safety, emissions, and cybersecurity standards. Compliance with these regulations not only adds to the cost of vehicle production but also necessitates ongoing investments in testing, certification, and regulatory compliance management. Failure to meet regulatory requirements can result in costly fines, recalls, and reputational damage, further constraining IT spending as resources are diverted toward remediation efforts.

Opportunity for IT Spending in the Automotive Market

Technological Advancements to Increase the Demand Globally

Technological advancements have also been instrumental in driving spending within the automotive industry. The emergence of electric and hybrid vehicles has led to substantial investments in research and development to enhance battery efficiency, charging infrastructure, and overall performance. Similarly, the integration of artificial intelligence (AI), the Internet of Things (IoT), and advanced driver-assistance systems (ADAS) has transformed the driving experience, prompting automakers to allocate resources towards developing and integrating these technologies into their vehicles. Furthermore, regulatory changes aimed at reducing emissions and enhancing safety standards have compelled automakers to invest in the development of cleaner and more efficient propulsion systems, such as electric powertrains and hydrog...

The Germany automotive market size reached 1,443.5 Thousand Units in 2024. Looking forward, IMARC Group expects the market to reach 1,967.3 Thousand Units by 2033, exhibiting a growth rate (CAGR) of 3.5% during 2025-2033. Significant advancements in electric vehicle (EV) technology, increasing consumer demand for connected and autonomous vehicles, government incentives and regulations promoting sustainable transportation, and the rising need for improved fuel efficiency and safety features are some of the drivers contributing to the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on propulsion type and vehicle type.

The Automotive Logistics Market is Segmented by Service (Transportation, Warehousing, Distribution & Inventory Management and More), by Type (OEM and Aftermarket), by Cargo Type (Finished Vehicles, Auto Components, and More), by Delivery Time (Standard and Express / Critical), and by Geography (North America, South America, Asia-Pacific, Europe, Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

The European automotive industry is set for a slow recovery in 2025, as forecasted by EUROFER, with a modest 2.1% production growth amidst ongoing challenges in EV infrastructure and global market competition.

The global automotive electronics market size crossed USD 295.51 Billion in 2025 and is likely to register a CAGR of over 7.3%, exceeding USD 597.82 Billion revenue by 2035, driven by Worldwide Proliferation of Electric Vehicles

The United States imported automotive parts and accessories valued at over 87.8 billion U.S. dollars in 2023, making it the leading importer for these goods. Germany, which imported a little over half what was recorded for the U.S., was second in the ranking.