IT Spending in Automotive Market Report 2025 (Global Edition)

Global IT Spending in Automotive Market Report 2025 Market Size Split by Type (Services, Software, Hardware), by Application (ADAS & Autonomous Driving, Infotainment & Telematics, Vehicle Safety & Sec...

IT Spending in Automotive Market Report Description

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IT Spending in Automotive Market Insights Video

Competitive Landscape of the IT Spending in Automotive Market

The competitive landscape of IT Spending in the Automotive market is characterized by a diverse range of players competing to gain market share through product innovation, strategic partnerships, and aggressive marketing efforts. Key players in the market include established electronics manufacturers, specialized IT Spending in Automotive companies, and emerging startups aiming to disrupt the market with innovative solutions.

Top Companies Market Share in IT Spending in Automotive Industry: (In no particular order of Rank)

• Bosch
• Continental AG
• Aptiv
• NVIDIA
• Microsoft
• Amazon Web Services (AWS)
• IBM
• Tata Consultancy Services (TCS)
• DXC Technology
• Siemens
• Others
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Regional Analysis of the IT Spending in Automotive Market

Which Region Dominates the IT Spending in the Automotive Market in 2024?

According to Cognitive Market Research, North America dominated the market in 2024 and accounted for around 40% of the global revenue because of Stringent safety regulations; North America leads in the adoption of advanced automotive technologies such as electric vehicles (EVs), autonomous driving, and connected cars, driving significant IT spending in these areas.

Which Region is Expanding at the Fastest CAGR?

Asia Pacific stands out as the fastest-growing region in IT spending in the automotive market for several compelling reasons. Asia Pacific leads in data center infrastructure, driven by Asia Pacific, which is experiencing rapid urbanization and rising middle-class populations, driving demand for automobiles and associated IT solutions for manufacturing, logistics, and mobility services.

The current report Scope analyzes IT Spending in Automotive Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America IT Spending in Automotive Market Analysis

According to Cognitive Market Research, the global IT Spending in the Automotive market size was estimated at USD 15481.2 Million, out of which 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.

• According to Cognitive Market Research, the US had a major share in the IT Spending in the Automotive market with a market size of USD 2825.00 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. Compelling opportunities driven by high consumer expectations for digital features and seamless connectivity in vehicles incentivize automakers to invest in IT solutions for enhanced user experiences.
• The Canada IT Spending in the Automotive market had a market share of USD 429.66 million in 2024 and is projected to grow at a CAGR of 7.0% during the forecast period. Collaborations between automotive manufacturers, technology companies, and startups drive innovation and IT spending in areas such as mobility services and software development.
• The Mexico IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 325.82 million in 2024.

Europe IT Spending in Automotive Market Analysis

According to Cognitive Market Research, the global IT Spending in the Automotive market size was estimated at USD 15481.2 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 4644.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.5% from 2024 to 2031.

• The United Kingdom IT Spending in the Automotive market had a market share of USD 451.14 million in 2024 and is projected to grow at a CAGR of 7.3% during the forecast period. With a strong focus on reducing carbon emissions, Europe is investing heavily in electric vehicles and related IT infrastructure, such as charging networks and battery management systems.
• The France IT Spending in the Automotive market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 247.05 million in 2024.
• According to Cognitive Market Research, the Germany IT Spending in Automotive market size was valued at USD 531.70 million in 2024 and is projected to grow at a CAGR of 6.7% during the forecast period. European automakers are undergoing digital transformations to stay competitive, driving investments in IT solutions for manufacturing automation, supply chain management, and customer relationship management.
• The Italy IT Spending in the Automotive market is projected to witness growth at a CAGR of 5.9% during the forecast period, with a market size of USD 230.94 million in 2024.
• The Russian IT Spending in the Automotive market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 414.23 million in 2024.
• The Spain IT Spending in the Automotive market is projected to witness growth at a CAGR of 5.6% during the forecast period with a market size of USD 220.20 million in 2024
• The Luxembourg IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.6% during the forecast period, with a market size of USD 83.25 million in 2024.
• Portugal's IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.3% during the forecast period, with a market size of USD 56.39 million in 2024.
• The Greece IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 32.22 million in 2024.
• The Rest of Europe's IT Spending in the Automotive market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 414.23 million in 2024.

Asia Pacific IT Spending in Automotive Market Analysis

According to Cognitive Market Research, the global IT Spending in the Automotive market size was estimated at USD 15481.2 Millio

• According to Cognitive Market Research, China IT Spending in the Automotive market size was valued at USD 926.45 million in 2024 and is projected to grow at a CAGR of 9.5% during the forecast period driven by high consumer expectations for digital features and seamless connectivity in vehicles.
• The Japan IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 284.11 million in 2024.
• The India IT Spending in the Automotive market had a market share of USD 247.05 million in 2024 and is projected to grow at a CAGR of 11.8% during the forecast period. Government initiatives to promote electric vehicles, reduce emissions, and improve road safety are driving IT investments in areas such as EV infrastructure, smart transportation systems, and vehicle connectivity.
• The South Korean IT Spending in the Automotive market is projected to witness growth at a CAGR of 9.1% during the forecast period, with a market size of USD 205.88 million in 2024.
• The Australian IT Spending in the Automotive market is projected to witness growth at a CAGR of 9.7% during the forecast period, with a market size of USD 107.06 million in 2024.
• The South East Asia IT Spending in the Automotive market is projected to witness growth at a CAGR of 11.0% during the forecast period, with a market size of USD 142.06 million in 2024.
• The Rest of Asia Pacific IT Spending in the Automotive market is projected to witness growth at a CAGR of 9.8% during the forecast period with a market size of USD 146.17 million in 2024.

South America IT Spending in Automotive Market Analysis

According to Cognitive Market Research, the global IT Spending in the Automotive market size was estimated at USD 15481.2 Million, out of which Latin America market of more than 5% of the global revenue with a market size of USD 42.56 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

• According to Cognitive Market Research, Brazil's IT Spending in the Automotive market size was valued at USD 191.56 million in 2024 and is projected to grow at a CAGR of 8.0% during the forecast period. Urbanization trends in Latin American cities drive demand for mobility solutions and IT investments in areas such as public transportation, ride-sharing, and traffic management.
• Argentina IT Spending in the Automotive market had a market share of USD 75.19 million in 2024 and is projected to grow at a CAGR of 8.3% during the forecast period. Adoption of emerging automotive technologies such as electric vehicles, connected cars, and autonomous driving is driving IT spending in Latin America, particularly in major markets.
• Colombia IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.0% during the forecast period, with a market size of USD 39.83 million in 2024.
• Peru IT Spending in the Automotive market is projected to witness growth at a CAGR of 7.6% during the forecast period, with a market size of USD 36.70 million in 2024.
• Chile IT Spending in the Automotive market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 32.22 million in 2024.
• The Rest of Latin America's IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 72.06 million in 2024.

Middle East IT Spending in Automotive Market Analysis

According to Cognitive Market Research, the global IT Spending in the Automotive market size was estimated at USD 15481.2 Million, out of which 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 GCC Countries IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 76.62 million in 2024. Urbanization in African cities is leading to increased demand for mobility solutions and smart transportation systems, driving IT investments in areas such as ride-sharing, traffic management, and public transportation. Egypt's IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.0% during the forecast period, with a market size of USD 18.80 million in 2024.
• The Egypt IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.1% during the forecast period, with a market size of USD 24.29 million in 2024.
• The South African IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.7% during the forecast period, with a market size of USD 28.29 million in 2024. The beauty industry in Africa is experiencing rapid growth, driven by increasing consumer awareness and demand for grooming services.
• Turkey IT Spending in the Automotive market is projected to witness growth at a CAGR of 8.0% during the forecast period with a market size of USD 18.00 million in 2024.
• Nigeria's IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 18.80 million in 2024.
• The Rest of MEA IT Spending in the Automotive market is projected to witness growth at a CAGR of 6.7% during the forecast period with a market size of USD 21.12 million in 2024.

IT Spending in Automotive Market Analysis

IT Spending in Automotive Market Type Segment Analysis

According to Cognitive Market Research, services category stand out as the dominating category. The automotive industry spends a lot of money on IT services, including system integration, business and technical consulting, and outsourced services for specialised areas like vehicle information systems, energy management, automotive product lifecycle management, connectivity solutions, and after-sales support.

Software emerges as the fastest-growing category in IT spending in the automotive market. A significant portion of the worldwide IT investment in the automotive business is allocated to software by the automobile industry. These software programmes, which include customer relationship management, supplier relationship management, enterprise resource planning, material requirement planning, and product lifecycle management, are used in OEMs' and suppliers' production processes.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of IT Spending in Automotive Industry. Request a Free Sample PDF!

Application Segment Analysis of IT Spending in Automotive Market

Market segmentation by Application is another crucial element in understanding the dynamics of the IT Spending in Automotive industry. Applications refer to the specific uses or end-user industries that drive demand for the IT Spending in Automotive products or services. These can vary widely, depending on the nature of the market, ranging from healthcare, manufacturing, and retail to more specialized sectors like aerospace, automotive, and telecommunications. By breaking down the market according to its applications, businesses can gain insight into which industries are adopting IT Spending in Automotive-related solutions most effectively, and where new opportunities are emerging.

Moreover, analyzing application trends helps in recognizing which industries are growing faster, where innovations are occurring, and which markets are saturated, allowing businesses to strategically position themselves in the most promising areas of the market. Get in touch with us to receive industry-specific insights tailored to your needs
 

Some of the key Application of IT Spending in Automotive are:

• ADAS & Autonomous Driving
• Infotainment & Telematics
• Vehicle Safety & Security
• Connected Vehicle Services
• Fleet Management
• Predictive Maintenance

The above Graph is for representation purposes only. This chart does not depict actual Market share.

IT Spending in Automotive Deployment Model Segment Analysis

• On-Premises
• Cloud-Based
• Hybrid

IT Spending in Automotive Technology Type Segment Analysis

• Artificial Intelligence (AI)
• Internet of Things (IoT)
• Blockchain
• 5G Connectivity
• Big Data & Analytics

IT Spending in Automotive Vehicle Type Segment Analysis

• Passenger Cars
• Commercial Vehicles
• Electric Vehicles (EVs)
• Autonomous Vehicles

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

Author's Conclusion