Automotive Predictive Technology Market Size, Share and Forecast to 2030

Autonomous vehicles and self-driving technologies employ several predictive features to warn drivers of impediments and generate additional driving alerts. Several significant OEMs are investing extensively in developing autonomous vehicles, which are anticipated to act as market drivers.

While global sales of new automobiles began to climb modestly, a severe chip shortage caused by a disruption in the supply chain has caused several automakers to delay the release of new vehicles. However, the trend toward more technologically advanced car technologies—such as artificial intelligence and machine learning to improve safety features like ADAS and predictive maintenance to cut downtime and boost performance—will propel the automotive predictive market's expansion.

Market Dynamics

Technology Trends to Drive the Global Automotive Predictive Technology Market

With increasing technological breakthroughs in the automobile sector, end-users are willing to spend more on cutting-edge technology that improves the driving experience and enhances the safety of both drivers and passengers. In the automobile industry, machine learning and predictive technology considerably impact the predictive capacities of vehicles. These technologies improve the performance of vehicles and are cost-effective since they prevent vehicle downtime by informing the owner of any issues. Several industry leaders are investing extensively in research and development and releasing new products to attract customers by boosting safety features and driving experience. As a result of the trends mentioned above and developments, it is anticipated that the category of passenger cars will increase at a healthy rate over the projection period.

Research Activities, Partnerships, and Collaborations by Major Players to Provide Opportunities for the Global Automotive Predictive Technology Market

Numerous research activities, partnerships, and collaborations conducted by significant market players and original equipment manufacturers (OEMs) to develop automotive predictive technologies in autonomous vehicles to meet diverse consumer demands are anticipated to create lucrative opportunities for market participants. In August 2021, Iteris, Inc., and Wejo announced that they had entered into a deal to supply increased connected car data content to Iteris' public-sector and commercial customers across North America.

Items Clear Mobility Cloud will integrate connected vehicle data features with additional layers of real-time traffic and weather data, incremental predictive inputs, and artificial intelligence capabilities. The combination will enable new levels of understanding in commuter information, traffic mitigation, road network management, and road use research. Over the forecast period, improvements in autonomous and connected vehicles and technological advancements such as machine learning and artificial intelligence are projected to generate new opportunities for market participants.

Regional Insights

By region, the global automotive predictive technology market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.

Asia Pacific accounted for the largest market share and is estimated to grow at a CAGR of 8.4% during the forecast period. China is one of the world's largest automobile marketplaces, and more than 20.17 million passenger cars were sold in the country in 2020, a 5.89% annual decrease compared to 2019. Despite the pandemic, China remains one of the leading marketers of automobiles, presenting a good opportunity for predictive technology to join the Chinese automobile industry. The Chinese government is concentrating on both autonomous and electric mobility. The government has declared that the first national standard for autonomous vehicles will be implemented in March 2022. Factors such as mergers, collaborations, etc., will increase the demand for automotive predictive technology in the Chinese automotive market to boost autonomous driving.

Europe is the second largest region. It is estimated to reach an expected value of USD 30 billion by 2030, growing at a CAGR of 8.2% during the forecast period. Volkswagen, Daimler-Benz, BMW, Porsche, etc., are among the industry titans that comprise the German automobile sector, which is considered the global leader. Over 35% of the nation's R&D expenditures are attributable to the automotive industry. Although the industry for automotive predictive technology is still in its infancy, several OEMs are investing extensively in this technology to attract more consumers and increase their market share. German automakers are introducing new products with safety features based on predictive technology, such as the Volkswagen Taigun 2021, which is equipped with the latest safety features such as electronic stability control, multi-collision brakes, hill hold control, etc. Due to these factors, the country's automotive predictive technology market will be expected to expand at a healthy rate over the forecast time.

North America is the third largest region. The demand for predictive technology is gradually increasing as car manufacturers produce automobiles with modern technology by applying artificial intelligence and machine learning to foresee mishaps, breakdowns, and various vehicle maintenance. The demand for self-driving automobiles in the North American region has increased dramatically in the past three years. The collaboration amongst United States-based businesses well supports the need. On the safety side, adopting predictive technology in vehicles is gaining popularity as it keeps the consumer safe from approaching obstacles and lowers the fatality rate. These reasons will drive the market for automotive predictive technology in the United States.

Key Highlights

The global automotive predictive technology market was valued at USD 58 billion in 2021. It is estimated to reach an expected value of USD 120 billion by 2030, growing at a CAGR of 8.4% during the forecast period (2022-2030).
By vehicle type, the global automotive predictive technology market is segmented into passenger cars and commercial vehicles. The commercial vehicles segment accounted for the largest market share and is estimated to grow at a CAGR of 8.5% during the forecast period.
By end-user type, the global automotive predictive technology market is segmented into fleet owners, insurers, and other end-users. The fleet owners segment accounted for the largest market share and is estimated to grow at a CAGR of 8.4% during the forecast period.
By hardware type, the global automotive predictive technology market is segmented into ADAS, onboard diagnosis, and other hardware types. The ADAS segment accounted for the largest market share and is estimated to grow at a CAGR of 9.7% during the forecast period.