The global automotive camera market is projected to be worth between $8.95 billion and $10.17 billion in 2025 and is expected to grow at a compound annual growth rate (CAGR) of around 8.8% to 9.95% through 2030 and beyond. The market is driven by increasing demand for Advanced Driver-Assistance Systems (ADAS), stringent government safety regulations, and the proliferation of electric and autonomous vehicles. The Asia Pacific region is expected to lead the market in share, while Europe has been a key market due to strong safety regulations. 

Market size and forecasts

• 2025 Market Size: Between USD 8.95 billion and USD 10.17 billion.

• CAGR (2025-2030/32): 8.8% to 9.95%.

• Forecast (2030): USD 14.38 billion.

• Forecast (2032): USD 15.03 billion to USD 15.34 billion.

• Forecast (2035): USD 23.64 billion. 

Key market drivers

• Demand for ADAS: The push for more ADAS features like park assist, blind spot detection, lane departure warning, and adaptive cruise control is a primary driver.

• Stringent Safety Regulations: Government mandates in regions like Europe (General Safety Regulation II), the U.S. (backup camera mandates), and China (2024 NCAP) are driving broader adoption of camera systems.

• Advanced Vehicle Technology: The continued advancement of autonomous and semi-autonomous driving technologies, along with the growth of the electric vehicle market, requires more sophisticated and numerous camera systems.

• AI Integration: The development of AI-based cameras enhances safety features like traffic sign recognition and pedestrian detection.

• Consumer Awareness: Increasing consumer emphasis on safety and comfort features is fueling the demand for camera systems. 

Market segments

• Vehicle Type: The passenger cars segment holds the largest market share and is expected to maintain its dominance due to high production and increasing safety feature adoption. Commercial vehicles are also a significant and growing segment.

• Application: Parking assist systems historically held a large share, but ADAS applications are growing quickly. Driver monitoring and in-cabin safety systems are noted as a particularly fast-growing application area.

• Technology: Digital CMOS cameras held the largest share in 2024, but thermal and infrared cameras are gaining momentum for advanced functionalities like night vision and are expected to grow rapidly.

• Regional Dominance: The Asia Pacific region is the largest market and is expected to continue leading due to a large and growing automotive market, increasing disposable income, and rising vehicle sales. Europe and North America also represent significant markets. 

Challenges and trends

• Challenges: High installation costs, supply chain disruptions, and cybersecurity risks are key challenges.

• Trends: Trends include the adoption of 360-degree cameras, AI integration, growth in the aftermarket for camera systems, and the increased use of multi-camera arrays. The average number of cameras per vehicle is projected to increase. 

Frost & Sullivan Forecasts $238 Billion Market for AI-Enabled Automotive Features by 2030

Sonatus-sponsored report finds in-vehicle edge AI is reshaping how OEMs design, operate, and monetize across the automotive lifecycle

Sunnyvale, Calif. — Dec. 16, 2025 — In-vehicle artificial intelligence is on track to become one of the most transformative technologies in the automotive industry, with a total market opportunity expected to grow from $43 billion in 2025 to $238 billion in 2030, according to a new report by Frost & Sullivan, sponsored by Sonatus. The study finds that AI-driven innovations such as prognostics, in-vehicle AI companions, battery management systems, and sensor virtualization, are reshaping how automakers design, operate and monetize vehicles.

The findings indicate a fundamental shift: AI is transitioning from a cloud-centric, luxury-focused implementation to mass-market, in-vehicle edge execution. This is expected to deliver significant cost savings, enhanced safety, and new revenue opportunities for automakers, with a projected compound annual growth rate (CAGR) of 40% across Europe, North America, and Japan.

Automakers are accelerating investments in centralized compute platforms, over-the-air (OTA) updates, and adaptive as well as personalized intelligence. Adaptive intelligence enables vehicles to automatically adjust performance and settings in response to real-world conditions, driving behavior, and road environments, while personalized intelligence tailors the in-cabin experience to individual preferences. These advances are becoming essential as OEMs confront rising energy costs, stricter regulations, mounting security requirements, and escalating warranty and recall expenses. Meanwhile, structural changes are speeding the transition: platforms are consolidating into centralized compute systems, vehicles generate gigabytes of monetizable data daily, and consumers now demand the same pace ofinnovation that they enjoy from smartphones, apps, and other connected services. Intelligence is rapidly becoming the core differentiator in how cars are designed, operated, and monetized.

The financial implications for the automotive industry are significant. Frost & Sullivan’s research analyzed a mix of edge AI use cases and their business impact, highlighting how intelligence-driven capabilities can deliver multi-billion dollar cost savings and new revenue streams. While these examples represent only part of the broader opportunity, they illustrate the scale of transformation already underway:

● Energy efficiency gains: $2.84 billion in 2025, to $20.93 billion by 2030

(42% CAGR)

● Warranty cost reductions: $0.65 billion in 2025, to $11.77 billion by 2030

(78.5% CAGR)

● Battery degradation reduction: $0.72 billion in 2025, to $6.10 billion in 2030

(53.3% CAGR)

“AI at the edge is reshaping the fundamentals of the automotive industry, moving

from isolated use cases to a central role in how vehicles are designed, operated,

and monetized,” said Ajit Chander Swaminathan, associate partner head of

mobility Americas, Frost & Sullivan. “Our research shows that the convergence of

centralized compute platforms, an abundance of vehicle data, and consumer

demand for personalization is creating a $238-billion opportunity for the SDV

market. Together, these forces are transforming intelligence from a feature into a

foundation.”

Sonatus, a leader in intelligence-driven software-defined vehicle technology, delivers the AI toolchain and in-vehicle orchestration that makes edge AI scalable and practical for mass adoption. Sonatus enables OEMs to observe vehicle behavior, analyze data, and act on insights across every domain, embedding AI throughout the vehicle, from powertrain and battery systems to safety, comfort, and personalization. Already embedded in more than 6 million production vehicles, Sonatus is working with a wide array of ecosystem partners to deliver immediate impact.

“Intelligence is the new horsepower. It’s no longer enough for vehicles to collect

data; they need to act on it in real time,” said Sanjay Khatri, head of product

marketing, Sonatus. “With AI guiding how data is captured, interpreted, and used

within the vehicle, Sonatus gives OEMs a faster, smarter path to operational

efficiency, improved vehicle safety, and the personalized services customers are

willing to pay for.”

To access the complete report, visit

https://www.sonatus.com/resources/in-vehicle-edge-and-cloud-ai-at-scale/.