How big is the automotive tech market | Industry Size, Growth & Forecast

Q: How big is the automotive tech market size?

The automotive tech market is projected to reach USD 524.7 billion by 2031.

Q: What is the expected CAGR for the automotive tech market?

The automotive tech market is anticipated to grow at a CAGR of 9.1% during the forecast period.

Q: Which vehicle types are leading in automotive tech integration?

Electric vehicles, premium passenger cars, and autonomous shuttles are leading tech adoption.

Q: What are the biggest challenges in the automotive tech market?

High R&D costs, interoperability issues, data privacy concerns, and software complexity.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

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Code: MTA5240

Publication Date: Jul 2025

How big is the automotive tech market?

According to 6Wresearch internal database and industry insights, the automotive tech market was valued at approximatelyUSD 285.3 billion in 2024 and is projected to reachUSD 524.7 billion by 2031, expanding at aCAGR of 9.1% during the forecast period.

This growth is driven by rapid digital transformation in the automotive sector, rising demand for connected and autonomous vehicles, and advancements in AI, IoT, and vehicle-to-everything (V2X) communication technologies. Increasing integration of software-defined vehicle architecture and electrification trends are further accelerating market momentum.

Key Growth Factors of the Automotive Tech Market

Surge in demand for connected, autonomous, and smart vehicles
Rising integration of advanced driver assistance systems (ADAS)
Growing importance of cybersecurity and vehicle software updates
Expansion of infotainment, telematics, and in-vehicle connectivity
Emergence of vehicle-to-grid (V2G) and V2X communication solutions
Increasing software and electronics content per vehicle

Automotive Tech Market Trends

Automotive OEMs are investing heavily in digital twin technology, vehicle data monetization, and centralized computing platforms. Cloud-connected infotainment and over-the-air (OTA) software updates are becoming standard features. Startups and tech giants are collaborating with traditional automakers to create AI-powered mobility solutions. Automotive tech is increasingly shifting towards service-based business models.

Emerging Developments in the Automotive Tech Market

Next-gen autonomous driving systems are leveraging AI, LIDAR, and neural networks for real-time decision-making. Blockchain is being tested for vehicle identity and secure data transactions. EV operating systems are being developed to unify battery management, infotainment, and navigation. Edge computing and 5G integration are enabling low-latency communication for autonomous vehicle operations.