Automotive Prognostics Market Report 2026

The automotive prognostics market size has grown rapidly in recent years. It will grow from $9.62 billion in 2025 to $10.95 billion in 2026 at a compound annual growth rate (CAGR) of 13.8%. The growth in the historic period can be attributed to telematics adoption, onboard diagnostics growth, vehicle data availability, maintenance cost optimization, fleet management needs.

The automotive prognostics market size is expected to see rapid growth in the next few years. It will grow to $18.2 billion in 2030 at a compound annual growth rate (CAGR) of 13.5%. The growth in the forecast period can be attributed to AI-driven analytics adoption, autonomous vehicle development, predictive servicing demand, connected mobility expansion, digital aftermarket services. Major trends in the forecast period include adoption of predictive maintenance platforms, integration of machine learning algorithms, growth of connected vehicle data analytics, expansion of cloud-based diagnostics, demand for fleet health monitoring.

The increase in road accidents is anticipated to drive the growth of the automotive prognostics market in the future. Road accidents refer to incidents where vehicles on the road collide with each other, pedestrians, or stationary objects such as barriers, trees, or utility poles. Automotive prognostics, or predictive diagnosis, aims to support effective maintenance planning, leading to reduced downtime, lower costs, enhanced safety, and greater value for roadways, ultimately helping to reduce road accident fatalities. For example, in June 2024, according to Llywodraeth Cymru / Welsh Government, a government administration in Wales, police forces in Wales reported a total of 4,348 road casualties in 2023, marking a 2% increase compared to 2022. Thus, the rising need for predictive diagnostics on the road is fueling growth in the automotive prognostics market.

Leading companies in the automotive prognostics market are leveraging strategic partnerships to foster the development of innovative automotive prognostics. These partnerships benefit automotive prognostic firms by combining resources and expertise, strengthening research and development, expanding market reach, and accelerating commercialization efforts. This collaborative strategy promotes innovation and drives growth within the automotive prognostics field. For example, in October 2023, Infineon Technologies AG, a semiconductor manufacturing company based in Germany, partnered with Eatron Technologies, a UK-based software company. This partnership aims to enhance automotive battery management systems (BMS) by incorporating machine learning into Infineon’s AURIX TC4x microcontroller, focusing on improved battery performance, accuracy, and prognostics, such as state of health (SoH) and remaining useful life (RUL) predictions.

In January 2025, NXP Semiconductors N.V., a Netherlands-based automotive semiconductor and edge processing solutions company, acquired TTTech Auto for $625 million. Through this acquisition, NXP aims to accelerate the automotive industry’s transition toward software-defined vehicles, enhance its CoreRide platform, and strengthen hardware-software integration for global automakers. TTTech Auto Group is an Austria-based company that provides automotive prognostics solutions, focusing on safety-critical and future-ready platform-centric technologies for automated and highly automated driving.

Major companies operating in the automotive prognostics market report include Stellantis N.V., General Motors Company, Bayerische Motoren Werke AG, Tesla Inc., International Business Machines Corporation, DENSO Corporation, Continental AG, Magna International Inc., Bridgestone Corporation, Cummins Inc., ZF Friedrichshafen AG, Lear Corporation, Infineon Technologies AG, NXP Semiconductor Inc., Harman International Industries, Delphi Technologies, Garrett Motion Inc., Ansys Inc., HCL Technologies Limited, Robert Bosch GmbH, Aeris Communications, Covisint Corp., Cognosos Inc., Preteckt Inc., Acerta Analytics Solutions Inc., Hitachi Astemo Ltd.

North America was the largest region in the automotive prognostics market in 2025. The regions covered in the automotive prognostics market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive prognostics market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The automotive prognostics market consists of revenues earned by entities by providing services such as bi-directional information exchanges, real-time performance assessments, and predictive failure analytics. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive prognostics market also includes sales of software, tools, fault modeling tools, and health indicators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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