
Report ID: SQMIG45J2308
Skyquest Technology's expert advisors have carried out comprehensive global market analysis on the vehicle analytics market, covering regional industry trends and market insights. Our team of analysts have conducted in-depth primary and secondary research to provide regional industry analysis and forecast of vehicle analytics market across North America, South America, Europe, Asia, the Middle East, and Africa.
North America dominated with a revenue share of more than 32.0% in 2023. Proximity to technology hubs such as Silicon Valley has encouraged innovation in vehicle analytics market in the region. Additionally, the speedy deployment of 5G networks facilitates real-time data processing and transmission. Besides this, stringent safety regulations are encouraging ADAS and autonomous vehicle development.
The vehicle analytics market in the United States is expanding at a fast pace with the extensive use of advanced driver-assistance systems (ADAS) and connected vehicles. Analysis of real-time data is being improved for better fleet management and regulatory compliance through the integration of IoT and AI technology. However, to protect driver privacy and national security, the U.S. government is putting legislation on the table that would prohibit self-driving cars that rely on Chinese and Russian technology by 2027.
Usage of electric vehicles (EVs) and higher expenditure on smart transportation infrastructure are driving growth in Canada's vehicle analytics industry. Enhancing vehicle performance and energy efficiency are being triggered through the adoption of analytics solutions with the purpose of lowering carbon emission by the government. Development of Canadian digital companies collaborating with automakers to enhance road safety and operating performance is augmented with driver behavior analytics and predictive maintenance.
The European vehicle analytics market is expected to witness significant growth over the forecast period. Europe is a region with a history of stringent regulation of vehicle emissions, safety, and fuel efficiency. Vehicle analytics provides data necessary for compliance with these regulations, and hence the market increases. Furthermore, environmental sustainability is prioritized in the region. Vehicle analytics maximizes vehicle performance with reduced emissions and fuel usage in accordance with such aims. A mature automotive industry exists in Europe, with immense focus on innovation. This affords good backing for the establishment and adoption of vehicle analytics products.
With the onset of companies like Wayve, which is working on AI-focused autonomous driving tech, the vehicle analytics industry is improving in the UK. Wayve has raised more than USD 1 billion from investors since its inception in 2017 from investors like SoftBank and Microsoft, allowing it to venture into markets like Germany, the US, and Japan. The market is expanding because of the favorable policies of the UK government for testing and manufacturing autonomous vehicles.
Germany's growing automotive industry is integrating vehicle analytics to improve automobile performance and manufacturing processes. To make things simpler and drive innovation, firms like SAP SE are working with auto part manufacturers like Mahle GmbH to deploy cloud-based analytics platforms. Germany is becoming a power to be reckoned with when it comes to leveraging the latest vehicle analytics technology as a result.
The vehicle analytics market in the Asia Pacific is anticipated to register the maximum CAGR throughout the forecast period. Smart city growth provides prospects for the application of vehicle analytics in city planning and traffic management. Increase in population and urbanization in nations such as India and China have led to severe traffic congestion. Vehicle analytics solutions can offer potential solutions in the way of traffic management, public transportation optimization, and autonomous vehicle development.
The growing use of connected cars and the government's digital transformation vision for the transportation industry are driving India's vehicle analytics market growth. Startups are creating analytics platforms to offer insights into traffic behavior, vehicle health, and driver behavior in an attempt to increase efficiency and safety. Vehicle analytics solutions are gaining popularity with the government's efforts to make smart cities and intelligent transportation systems.
With players like Leapmotor planning a 2026 European entry for advanced driver-assistance technology, China is leading the vehicle analytics space. To adapt autonomous technologies to the local environment, Leapmotor is establishing an R&D facility in Europe. In China's plan to lead AI-powered autonomous driving, Chinese lidar maker Hesai is also planning its first overseas production for 2026 to diversify geopolitics risks and tariffs.
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Global Vehicle Analytics Market size was valued at USD 3.44 Billion in 2023 and is poised to grow from USD 4.27 Billion in 2024 to USD 27.73 Billion by 2032, growing at a CAGR of 26.3% in the forecast period (2025-2032).
To achieve a competitive advantage, organizations in the aggressively competitive global vehicle analytics market are focusing on decision-making powered by data, cloud computing technology, and machine-learning analytics. To become larger market share gainers, larger firms are investing in upgrading cybersecurity, optimization of fleets, and predictive service. Even as acquisitions help firms enhance analytics capability, innovation is encouraged with strategic partnerships of auto companies and digital companies. 'International Business Machines Corporation', 'Nissan Motor Co., Ltd.', 'Google LLC', 'Amazon Web Services (AWS)', 'SAP SE', 'Siemens AG', 'Verizon Communications Inc.', 'Geotab Inc.', 'Netradyne Inc.', 'Inseego Corp.', 'OCTO Telematics', 'Continental AG', 'Harman International', 'Zubie Inc.', 'Tesla Inc.'
The automotive industry is transforming due to the integration of AI and IoT in vehicle analytics. AI analytics can forecast when a car will require repair, and it can optimize fuel consumption for improved performance. IoT sensors that give real-time inputs on the performance and condition of a vehicle can enhance customer and business experiences.
Development of Connected and Autonomous Vehicles: The demand for real-time vehicle analytics is being fueled by the increasing use of connected and autonomous vehicles. To enhance security, streamline routes, and enhance V2V communications, such systems are dependent on AI-powered insights. Companies are using cloud-based AI and predictive analytics to facilitate the shift to fully autonomous driving by converting vehicle information to actionable insights.
How Is North America Leading in Vehicle Analytics Innovation?
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Report ID: SQMIG45J2308
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