Edge Computing In Automotive Market Size & Forecast 2030

Name: Edge Computing In Automotive Market Size & Forecast 2030
Creator: Mordor Intelligence
License: https://www.mordorintelligence.com/privacy-policy

Edge Computing In Automotive Market Size and Share

Market Overview

Study Period	2019 - 2030
Market Size (2025)	USD 12.70 Billion
Market Size (2030)	USD 31.36 Billion
Growth Rate (2025 - 2030)	19.82% CAGR
Fastest Growing Market	Asia Pacific
Largest Market	North America
Market Concentration	Medium
Major Players *Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Edge Computing In Automotive Market Summary — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Edge Computing In Automotive Market Analysis by Mordor Intelligence

The edge computing in automotive market is valued at USD 12.7 billion in 2025 and is forecast to reach USD 31.36 billion by 2030, advancing at a 19.82% CAGR. Growth springs from the swelling volume of vehicle-generated data, the spread of 5G low-latency networks, and safety regulations that make real-time Vehicle-to-Everything processing non-negotiable. Carmakers now redesign vehicles around software rather than mechanics, which pushes processing out of remote clouds and into distributed in-vehicle and roadside nodes. Hardware keeps the revenue lead because purpose-built silicon must meet harsh automotive requirements, yet services expand fastest as manufacturers outsource integration and lifecycle support. Regional demand pivots toward Asia-Pacific where electric-vehicle uptake, government incentives, and smart-city spending converge to reshape deployment economics.^{[1]Deutsche Telekom, “Car2MEC Project Achieves Low Latency for V2X,” telekom.com}

Key Report Takeaways

By component, hardware led with 44% of the edge computing in automotive market share in 2024, while services are on track for a 25.4% CAGR through 2030.
By deployment model, on-board vehicle edge held 46.5% of the edge computing in automotive market share in 2024, infrastructure edge is set to grow at 21.91% CAGR to 2030.
By vehicle type, passenger cars accounted for 51% of the edge computing in automotive market share in 2024; heavy commercial vehicles are poised for a 22.61% CAGR between 2025-2030.
By application, connected-car features retained a 31% of the edge computing in automotive market share in 2024, autonomous-driving workloads will accelerate at 26.3% CAGR to 2030.
By geography, North America commanded 35.2% of the edge computing in automotive market share in 2024, whereas Asia-Pacific is projected to log a 24.8% CAGR through 2030.

Global Edge Computing In Automotive Market Trends and Insights

Drivers Impact Analysis

Driver	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
Proliferation of vehicle sensors and 5G roll-outs	+4.20%	Global, with early gains in North America, EU, and China	Medium term (2-4 years)
OEM shift toward software-defined vehicles	+3.80%	Global, led by premium segments in North America and Europe	Long term (≥ 4 years)
Regulatory support for V2X safety mandates	+2.90%	North America and EU regulatory zones, expanding to Asia-Pacific	Medium term (2-4 years)
Rising IoT data traffic per car	+2.10%	Global, concentrated in connected vehicle markets	Short term (≤ 2 years)
Deployment of curb-side micro-edge nodes by cities	+1.80%	Smart cities in North America, EU, and select Asia-Pacific metros	Long term (≥ 4 years)
Battery-friendly in-vehicle AI accelerators cut TCO	+1.60%	Electric vehicle markets globally, led by China and EU	Medium term (2-4 years)
Source: Mordor Intelligence

Mainstream – Proliferation of Vehicle Sensors and 5G Rollouts

Modern cars host up to 200 sensors that stream 25 GB of data per hour, a volume that overwhelms legacy architectures. 5G radio access now delivers sub-10 ms latency, demonstrated when Deutsche Telekom and Nokia cut V2X delays below 30 ms in the Car2MEC trials. Carmakers therefore embed local processing to classify, compress, and react to hazards before forwarding essential insights to the cloud. The outcome is a decisive tilt from central to distributed compute, which underpins rising hardware demand and reinforces the edge computing in automotive market’s rapid CAGR.

Mainstream – OEM Shift Toward Software-Defined Vehicles

Manufacturers rewrite their business models around code updates and digital features. Bosch and Volkswagen’s Cariad arm assigned 1,000 engineers to co-develop AI platforms slated for 2025 vehicles. Always-connected cars now require secure, over-the-air software pipes plus high-performance in-vehicle compute to validate and roll back code safely. These workflows enlarge service revenue pools and elevate the edge computing in automotive market as a core monetization pillar.^{[2]Bosch, “Bosch and Cariad Expand Automated Driving Alliance,” bosch.com}

Under-the-radar – Curb-side Micro-edge Nodes by Cities

Municipalities discreetly retrofit lamp posts and traffic lights with compact compute boxes. Peachtree Corners, Georgia invested USD 4 million in Qualcomm-based roadside units that run on the 5.9 GHz safety band and optimize intersections in real time. Offloading heavy analytics to curb-side nodes trims vehicle hardware budgets, introduces redundancy, and opens ad-supported revenue streams for cities.^{[3]Qualcomm, “Peachtree Corners Deploys C-V2X Roadside Units,” qualcomm.com}

Under-the-radar – Battery-friendly In-vehicle AI Accelerators Cut TCO

Start-ups refine neural-processing units that sip energy yet match inference throughput. Expedera secured USD 20 million to commercialize such IP, enabling continuous driver-monitoring cameras without eroding electric-vehicle range. Lower power draw shrinks cooling systems and battery packs, softening total cost of ownership and drawing fleets into the edge computing in automotive market.

Restraints Impact Analysis

Restraint	(~) % Impact on CAGR Forecast	Geographic Relevance	Impact Timeline
High upfront infrastructure capex	-2.80%	Global, particularly affecting emerging markets	Short term (≤ 2 years)
Cyber-security and data-sovereignty risks	-2.10%	Global, with heightened concerns in EU and China	Medium term (2-4 years)
Scarcity of automotive-grade edge silicon supply	-1.90%	Global supply chain, acute in Asia-pacific manufacturing hubs	Short term (≤ 2 years)
Fragmented MEC interoperability standards	-1.40%	Global, with regional variations in implementation	Long term (≥ 4 years)
Source: Mordor Intelligence

Mainstream – High Upfront Infrastructure Capex

Complete edge stacks bundle compute nodes, private 5G, and hardened security, a combination that pushed Verizon and Audi’s German test site budget past USD 10 million. Capital intensity deters smaller OEMs and stalls projects in price-sensitive regions. Consequently, deployments prioritize functions that yield immediate safety payback while broader optimization waits for cost curves to drop.

Mainstream – Cyber-security and Data-sovereignty Risks

Distributed nodes multiply attack vectors and expose safety systems to remote intrusion. New UNECE WP.29 mandates drive continuous risk management and local data storage inside EU borders, tightening the compliance burden. OEMs are compelled to harden every micro-edge box, inflating costs and stretching scarce cybersecurity talent.

Segment Analysis

By Component: Hardware Dominance Faces Services Disruption

Hardware captured 44% revenue in 2024, underscoring the essential role of rugged processors, AI accelerators, and thermal solutions inside vehicles. This slice translates to the largest edge computing in automotive market share thanks to silicon that tolerates vibration and 125 °C ambient. In dollar terms the edge computing in automotive market size for hardware will still climb, yet services enjoy a steeper 25.4% CAGR as integrators manage over-the-air rollouts for mixed global fleets.

Automakers gravitate toward turnkey services because the learning curve for functional safety, cybersecurity, and real-time scheduling is steep. Suppliers such as Intel—after absorbing Silicon Mobility—bundle chips with middleware and long-term update contracts. The shift channels margin away from pure-play hardware and pushes platform vendors to partner with cloud operators for joint lifecycle offerings, reinforcing service momentum.

Edge Computing In Automotive Market: Market Share by Component — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Get Detailed Market Forecasts at the Most Granular Levels

Download PDF

By Deployment Model: Infrastructure Edge Challenges Vehicle-Centric Approaches

On-board compute retained 46.5% of 2024 revenue, underlining OEM confidence in self-contained reliability. Still, infrastructure nodes are tracking a 21.91% CAGR as smart-city budgets finance roadside boxes that extend awareness beyond a single car. This growth enlarges the edge computing in automotive market size for public edge assets and invites telecom carriers and municipalities into revenue-sharing schemes.

Hybrid topologies are emerging whereby vehicle, network, and curb-side processors cooperate. The Automotive Edge Computing Consortium promotes such split-compute frameworks to optimize cost and latency. Carmakers must now certify software across heterogeneous domains, elevating interoperability toolchains and driving standards activity.

By Application: Autonomous Driving Outpaces Connected-Car Growth

Connected-car services held 31% share in 2024, a legacy anchored by infotainment and telematics. Autonomous-driving stacks however will sprint at 26.3% CAGR, lifting their weight inside the overall edge computing in automotive market size. NVIDIA’s DRIVE Hyperion integrates multiple AI accelerators that together process six cameras, five radars, and three lidars in real time.

Embedded language models such as Cerence CaLLM Edge now run entirely on-board, removing dependence on cellular coverage and keeping response latency below 200 ms. Growing compute density inside vehicles shifts data-plan economics and creates fresh licensing revenue for software IP vendors.

Edge Computing In Automotive Market: Market Share by Application — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Get Detailed Market Forecasts at the Most Granular Levels

Download PDF

By Vehicle Type: Commercial Vehicles Drive Autonomous Edge Adoption

Passenger cars delivered 51% of 2024 turnover, primarily because of volume production. Yet heavy commercial vehicles will notch a 22.61% CAGR to 2030, making them the fastest climber within the edge computing in automotive market. Route-based fleets can amortize premium compute over predictable mileage, and autonomous freight pilots, such as Aurora’s Dallas-Houston corridor, show payback through driver cost avoidance.

Off-highway machinery taps edge nodes for autonomy in mines or farms where connectivity is sparse. Volvo’s VNL Autonomous truck platform layers dual redundant computers to meet an SAE Level 4 operational-safety envelope. These use cases cement the edge computing in automotive industry’s diversification beyond consumer mobility.

Geography Analysis

North America led with 35.2% revenue in 2024, supported by early 5G rollouts, orderly spectrum policy, and tight OEM-tech partnerships. Tesla, General Motors, and Ford pair with Intel, NVIDIA, and Qualcomm to co-design application-specific processors and testing regimes. Verizon’s private-network program underscores the region’s readiness to scale low-latency automotive workloads. Funding incentives at state and federal levels further anchor edge labs and pilot corridors.

Asia-Pacific is forecast to register a 24.8% CAGR to 2030. China merges electric-vehicle subsidies, vast consumer volumes, and city-led smart-transport schemes, creating a fertile edge computing in automotive market. Huawei’s launch of 100 autonomous 5G-A mine trucks in Inner Mongolia illustrates industrial-grade deployment under harsh conditions. Japan and South Korea supply advanced semiconductor nodes, while India positions talent hubs that write in-vehicle software for global OEMs.

Europe maintains momentum through premium marques and strict safety law. UNECE WP.29 and GDPR force rigorous cybersecurity and data-localization, raising the baseline for edge solutions. Bosch and Microsoft now co-produce generative-AI toolchains that comply with ISO 26262 functional-safety standards. Pan-EU digital strategies and cross-border 5G corridors allow continuous roaming for autonomous trucks between Germany, Austria, and Italy.^{[4]Huawei, “5G-A Autonomous Mining Trucks,” huawei.com}

Edge Computing In Automotive Market CAGR (%), Growth Rate by Region — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Get Analysis on Important Geographic Markets

Download PDF

Competitive Landscape

The edge computing in automotive market features moderate fragmentation. Semiconductor majors, Intel, NVIDIA, Qualcomm, invest in automotive-grade nodes, whereas tier-one suppliers like Continental, Bosch, and Aptiv weave those chips into domain controllers. Cloud hyperscalers AWS and Microsoft leverage edge containers and digital-twin pipelines to secure OEM design wins. Competitive advantage hinges on vertical integration that marries silicon lifecycles to 15-year vehicle platforms, safety certification, and global update orchestration.

NVIDIA’s DRIVE platform bundles hardware, SDK, and validation tools, shortening time-to-market for SAE Level 3 functions. Continental aligns its new High-Performance Computer with Android Automotive OS, targeting cockpit consolidation. Infineon’s USD 2.5 billion buyout of Marvell’s automotive Ethernet unit enhances bandwidth between sensors and processors. Partnerships—not standalone products—are emerging as the dominant route to volume deployment, particularly where fleet operators demand turnkey uptime guarantees.

Edge Computing In Automotive Industry Leaders

Cisco Systems, Inc.
Amazon Web Services, Inc.
Huawei Technologies Co., Ltd.
Hewlett Packard Enterprise Development LP
IBM Corporation
*Disclaimer: Major Players sorted in no particular order

Edge Computing in Automotive Market Concentration — Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Need More Details on Market Players and Competitors?

Download PDF

Recent Industry Developments

January 2025: AWS began joint work with Honda and Lotus Technology to accelerate software-defined vehicles, combining cloud orchestration, in-vehicle edge compute, and generative-AI design workflows.
January 2025: NXP agreed to acquire TTTech Auto for USD 625 million to fuse microcontrollers with proven safety middleware for mixed-criticality edge tasks.
March 2025: General Motors and NVIDIA started integrating Omniverse digital twins into upcoming EV production lines and driver-assistance packages.
April 2025: Infineon moved to purchase Marvell’s Automotive Ethernet business for USD 2.5 billion, expanding its one-stop semiconductor stack for high-bandwidth in-vehicle networks.

Table of Contents for Edge Computing In Automotive Industry Report

1. INTRODUCTION

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

4.1 Market Overview
4.2 Market Drivers
- 4.2.1 Mainstream Proliferation of Vehicle Sensors And 5G Rollouts
- 4.2.2 Mainstream OEM Shift Toward Software-Defined Vehicles
- 4.2.3 Mainstream Regulatory Support for V2X Safety Mandates
- 4.2.4 Mainstream Rising IoT Data Traffic Per Car
- 4.2.5 Deployment of Curb-Side Micro-Edge Nodes by Cities
- 4.2.6 Battery-Friendly In-Vehicle AI Accelerators Cut TCO
4.3 Market Restraints
- 4.3.1 Mainstream High Upfront Infrastructure Capex
- 4.3.2 Mainstream Cyber-Security and Data-Sovereignty Risks
- 4.3.3 Scarcity of Automotive-Grade Edge Silicon Supply
- 4.3.4 Fragmented MEC Interoperability Standards
4.4 Industry Value Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Buyers/Consumers
- 4.7.2 Bargaining Power of Suppliers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitute Products
- 4.7.5 Intensity of Competitive Rivalry

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Component
- 5.1.1 Hardware
- 5.1.2 Software
- 5.1.3 Services
5.2 By Deployment Model
- 5.2.1 On-board Vehicle Edge
- 5.2.2 Network/MEC Edge
- 5.2.3 Infrastructure Edge (Road-side and Smart City)
5.3 By Vehicle Type
- 5.3.1 Passenger Cars
- 5.3.2 Light Commercial Vehicles
- 5.3.3 Heavy Commercial Vehicles
- 5.3.4 Off-highway and Specialty Vehicles
5.4 By Application
- 5.4.1 Connected Cars (Infotainment and OTA)
- 5.4.2 ADAS and Autonomous Driving
- 5.4.3 Traffic Management and V2I
- 5.4.4 Fleet and Logistics Optimisation
- 5.4.5 Smart Cities Services
5.5 By Geography
- 5.5.1 North America
- 5.5.1.1 United States
- 5.5.1.2 Canada
- 5.5.1.3 Mexico
- 5.5.2 South America
- 5.5.2.1 Brazil
- 5.5.2.2 Argentina
- 5.5.2.3 Chile
- 5.5.2.4 Colombia
- 5.5.3 Europe
- 5.5.3.1 Germany
- 5.5.3.2 United Kingdom
- 5.5.3.3 France
- 5.5.3.4 Italy
- 5.5.3.5 Spain
- 5.5.3.6 Russia
- 5.5.4 Asia-Pacific
- 5.5.4.1 China
- 5.5.4.2 Japan
- 5.5.4.3 India
- 5.5.4.4 South Korea
- 5.5.4.5 Australia
- 5.5.4.6 Indonesia
- 5.5.5 Middle East and Africa
- 5.5.5.1 Middle East
- 5.5.5.1.1 United Arab Emirates
- 5.5.5.1.2 Saudi Arabia
- 5.5.5.1.3 Turkey
- 5.5.5.1.4 Israel
- 5.5.5.2 Africa
- 5.5.5.2.1 South Africa
- 5.5.5.2.2 Nigeria
- 5.5.5.2.3 Egypt

6. COMPETITIVE LANDSCAPE

6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
- 6.4.1 Amazon Web Services, Inc.
- 6.4.2 Cisco Systems, Inc.
- 6.4.3 Huawei Technologies Co., Ltd.
- 6.4.4 Hewlett Packard Enterprise Development LP
- 6.4.5 IBM Corporation
- 6.4.6 Intel Corporation
- 6.4.7 NVIDIA Corporation
- 6.4.8 Qualcomm Technologies, Inc.
- 6.4.9 Ericsson AB
- 6.4.10 Siemens AG
- 6.4.11 Robert Bosch GmbH
- 6.4.12 Continental AG
- 6.4.13 Verizon Communications Inc.
- 6.4.14 Vodafone Group Plc
- 6.4.15 Belden Inc.
- 6.4.16 Digi International Inc.
- 6.4.17 Litmus Automation Inc.
- 6.4.18 Azion Technologies Ltd.
- 6.4.19 Altran Technologies SA

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-space and Unmet-need Assessment

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections

Get Price Break-up Now

Global Edge Computing In Automotive Market Report Scope

Edge computing concentrates on the data that is close to where it is generated. The term thus complements the term cloud computing, which relates to the computing power in data centers. Edge computing helps to restrict the amount of data that is bootlegged out in a smart way, which decreases the data transmission costs and also decreases the volume of raw and sensitive data leaving the vehicle.

Edge computing in automotive market is segmented into applications (connected cars, traffic management, smart cities, transportation and logistics) and geography (North America, Europe, and Asia-Pacific). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Component

Hardware

Software

Services

By Deployment Model

On-board Vehicle Edge

Network/MEC Edge

Infrastructure Edge (Road-side and Smart City)

By Vehicle Type

Passenger Cars

Light Commercial Vehicles

Heavy Commercial Vehicles

Off-highway and Specialty Vehicles

By Application

Connected Cars (Infotainment and OTA)

ADAS and Autonomous Driving

Traffic Management and V2I

Fleet and Logistics Optimisation

Smart Cities Services

By Geography

North America	United States
	Canada
	Mexico
South America	Brazil
	Argentina
	Chile
	Colombia
Europe	Germany
	United Kingdom
	France
	Italy
	Spain
	Russia
Asia-Pacific	China
	Japan
	India
	South Korea
	Australia
	Indonesia

Middle East and Africa	Middle East	United Arab Emirates
		Saudi Arabia
		Turkey
		Israel

	Africa	South Africa
		Nigeria
		Egypt

By Component	Hardware
	Software
	Services
By Deployment Model	On-board Vehicle Edge
	Network/MEC Edge
	Infrastructure Edge (Road-side and Smart City)
By Vehicle Type	Passenger Cars
	Light Commercial Vehicles
	Heavy Commercial Vehicles
	Off-highway and Specialty Vehicles
By Application	Connected Cars (Infotainment and OTA)
	ADAS and Autonomous Driving
	Traffic Management and V2I
	Fleet and Logistics Optimisation
	Smart Cities Services

By Geography	North America	United States
		Canada
		Mexico

	South America	Brazil
		Argentina
		Chile
		Colombia

	Europe	Germany
		United Kingdom
		France
		Italy
		Spain
		Russia

	Asia-Pacific	China
		Japan
		India
		South Korea
		Australia
		Indonesia

	Middle East and Africa	Middle East	United Arab Emirates
			Saudi Arabia
			Turkey
			Israel

		Africa	South Africa
			Nigeria
			Egypt

Need A Different Region or Segment?

Customize Now

Key Questions Answered in the Report

What is the current value of the edge computing in automotive market?

The market stands at USD 12.7 billion in 2025 and is projected to reach USD 31.36 billion by 2030, reflecting a 19.82% CAGR.

Which component segment grows fastest?

Services are projected to expand at 25.4% CAGR through 2030 as manufacturers outsource integration and lifecycle support.

Why are commercial vehicles critical for growth?

Heavy trucks face driver shortages and high fuel costs; autonomous-ready edge platforms promise operational savings, driving a 22.61% CAGR for the segment.

Which region will record the highest growth rate?

Asia-Pacific is forecast to post a 24.8% CAGR thanks to China’s EV momentum, expansive 5G rollouts, and smart-city investments.

What are the main restraints facing adoption?

High upfront infrastructure costs, cybersecurity compliance, silicon shortages, and fragmented MEC standards together shave several percentage points off the forecast CAGR.

How fragmented is the competitive landscape?

Moderately: semiconductor leaders, tier-one automotive suppliers, and cloud hyperscalers all compete, with the top five firms controlling roughly 60% of revenue.

Page last updated on: November 28, 2025