| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 3.53 Billion |
| Market Size (2030) | USD 14.01 Billion |
| CAGR (2025 - 2030) | 31.78 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe AI Cloud Computing Market Analysis
The Europe AI Cloud Computing Market In Automotive Industry is expected to grow from USD 3.53 billion in 2025 to USD 14.01 billion by 2030, at a CAGR of 31.78% during the forecast period (2025-2030).
- The increasing demand for electric vehicles (EVs) is transforming the automotive industry. Artificial intelligence (AI) is playing a critical role in optimizing various aspects of EV technology. AI-driven algorithms are advancing battery management by monitoring and predicting battery health, ensuring durability and reliability.
- Additionally, machine learning is improving energy efficiency, optimizing power usage, and enhancing range prediction accuracy. AI also contributes to the optimization of charging infrastructure, personalized user experiences through natural language processing and voice recognition, and predictive maintenance, creating a seamless and efficient EV ownership experience. As the automotive industry shifts toward sustainability, the integration of AI with EV technology is driving innovations that support environmental goals while enhancing performance and user satisfaction in the EV market.
- The growing adoption of electric vehicles (EVs) and the emphasis on sustainability are key factors driving AI implementation in the automotive sector. AI systems are instrumental in optimizing battery performance, improving energy management, and supporting the development of EV infrastructure. By 2030, AI-powered EV management systems are expected to address challenges related to battery life, charging networks, and energy consumption on a global scale. The British government’s Road to Zero Strategy, which aims for at least 50% of new car sales to be ultra-low emissions by 2030, highlights the critical role of AI in achieving these targets.
- UK-based companies such as Wayve are leveraging AI to develop autonomous driving systems, with plans to launch them by 2025. Additionally, Jaguar Land Rover is investing in AI to enhance manufacturing processes and deliver customized customer experiences. Europe’s focus on AI-enabled safety features, including collision detection and driver monitoring systems, is expected to grow significantly. By 2030, regulatory frameworks like the European Union’s General Safety Regulation will require the integration of AI-powered safety features in all new vehicles, further driving market growth.
- The growth of AI and cloud computing in the European automotive industry faces challenges related to regulatory compliance, data security, and privacy. Companies must address evolving laws, protect sensitive data, ensure AI transparency, and manage cross-border data restrictions. By collaborating with regulators, investing in secure technologies, and maintaining high compliance standards, the industry can unlock the potential of AI and cloud technologies while preserving consumer trust and meeting legal obligations.
Europe AI Cloud Computing Market Trends
Rising SaaS Demand Driven by Automation and Connected Vehicles in EVs
- Software as a Service (SaaS) is a private cloud model that enables businesses to access cloud-hosted software via the Internet through subscription plans, eliminating the need for outright purchases or installations. This approach offers features such as multi-user accounts and tiered pricing structures, making it a flexible and scalable solution for enterprises.
- Software as a Service (SaaS) delivers fully operational applications accessible through a web browser, with the service provider managing the application and its infrastructure, including networks, servers, and data storage. This eliminates the need for users to handle installation, updates, or maintenance. Prominent examples include Google Gmail, Slack Technologies, LLC, and Salesforce, Inc.
- The automotive industry is witnessing a swift evolution, driven by groundbreaking advancements in technology. Despite ongoing doubts about the near-term adoption of fully autonomous vehicles, innovations continue to progress at an unprecedented pace. With the surge in electric vehicle (EV) adoption and the growing integration of Software-as-a-Service (SaaS) solutions, companies in Europe are increasingly focusing on enhancing vehicle connectivity to meet market demands.
- Prominent companies driving the Europe AI Cloud Computing market include Microsoft Corporation, Amazon Web Services (AWS), Google LLC, International Business Machines Corporation (IBM), SAP SE, Oracle Corporation, and Salesforce, Inc., among others. These firms deliver advanced SaaS solutions tailored to the automotive industry across Europe. Google Cloud, for instance, supports businesses in developing high-quality SaaS products, scaling operations efficiently, and achieving growth by offering infrastructure-level isolation at the project layer. Additionally, tools like Google Kubernetes Engine (GKE) enhance SaaS operations, ensuring scalability and streamlined maintenance.
- The adoption of the Internet of Things (IoT) in the region has grown significantly. The increasing reliance on IoT for connected cars, autonomous driving, and vehicle security has driven this growth. This trend is expected to continue expanding during the forecast period.
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Spain Witness the Major Growth
- Spain ranks as Europe's second-largest automobile manufacturer and holds the eighth position globally. The automotive sector plays a pivotal role in bolstering the nation's economy. Nine multinational corporations, including SEAT S.A. and Renault Group, operate 17 production facilities across the country. In 2023, these facilities rolled out 2.45 million vehicles, showcasing 40 distinct models, with 22 being electrified, underscoring Spain's commitment to sustainable mobility innovation.
- Spanish production plants lead Europe in efficiency and automation, boasting 1,000 industrial robots for every 10,000 employees. This sector stands out as a top investor in modernization, automation, and RDI, ensuring comprehensive value chain flexibility.
- Automobile companies are joining forces with cloud service providers to create innovative platforms using Generative AI, aiming to optimize operations. For example, in 2024, Honda Motor Co., Ltd., with a significant presence in Europe, including Spain, partnered with Amazon Web Services, Inc. (AWS) to drive the integration of automotive engineering and cloud technology. This collaboration is transforming the automotive industry by introducing software-defined vehicles (SDVs) that leverage cloud computing, Generative AI, and IoT to enhance electric vehicle (EV) functionalities. Its Digital Proving Ground (DPG) platform, built on AWS, gathers data to predict EV driving ranges, monitor energy consumption and vehicle performance, and enable seamless software updates. Additionally, Honda is employing AWS's Generative AI services to deliver tailored user experiences, benefiting the automobile industry by advancing EV technology and improving operational efficiency.
- In 2023, Spain saw a production surge of nearly 157,800 battery electric vehicles (BEVs), marking a 24.2% uptick from the prior year, as reported by ANFAC. Additionally, the output of plug-in hybrid vehicles climbed to approximately 165,500 units in 2023.
- In 2025, at the Artificial Intelligence Action Summit, European Commission President Ursula von der Leyen announced "InvestAI," a strategic plan to invest approximately USD 209 billion in advancing artificial intelligence technologies. A significant portion, around USD 20.9 billion, is allocated to creating "AI gigafactories," which will train large-scale AI models using nearly 100,000 advanced AI chips. By late 2026, these facilities will be operational in Finland, Germany, Italy, Luxembourg, and Sweden, while Spain upgrades its MareNostrum 5 system and Greece collaborates with the DAEDALUS supercomputer. These developments are expected to drive innovation in the automobile industry, particularly in autonomous driving and predictive maintenance systems, enhancing efficiency and safety.
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Europe AI Cloud Computing Industry Overview
Europe's AI cloud computing market is fragmented as existing and new market incumbents are adopting a digital innovation strategy.
Leading automotive manufacturers, including Mercedes-Benz, Audi, Volkswagen, and BMW, are utilizing AI to revolutionize the industry. From design and production to post-sale services, AI is transforming traditional processes into efficient, data-driven strategies. These companies are setting new standards while significantly improving the driving experience.
Furthermore, the companies are engaging in significant merger and acquisition activities that are expected to intensify the market competition. For instance, in March 2024, Valeo SA, a global leader in mobility technology, strengthened its collaboration with Google Cloud to leverage generative AI solutions. This partnership focuses on enhancing efficiency in vehicle design, manufacturing, equipment integration, quality control, and customer support. Additionally, Valeo SA will deploy these AI tools with its automotive clients, offering constructive insights to refine the solutions further.
Existing companies are expected to continue making upgrade activities a part of their core strategy over the forecast period, considering the anticipated growth of the market, increasing globalization, and trends.
Europe AI Cloud Computing Market Leaders
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SAP SE
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Amazon Web Services, Inc. (Amazon.com, Inc.)
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Google LLC
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IBM Corporation
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Microsoft Corporation
- *Disclaimer: Major Players sorted in no particular order
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Europe AI Cloud Computing Market News
- January 2025: Mercedes-Benz Group AG advanced its IT infrastructure by adopting "RISE with SAP," a strategic move to accelerate its digital transformation within the automotive industry. This phased implementation integrates Mercedes-Benz Group AG's cloud strategy with SAP SE's evolving S/4HANA platform, ensuring continuous updates. By leveraging advanced technologies like artificial intelligence, the company streamlines operations across finance, logistics, and after-sales services, enhancing efficiency and adaptability.
- January 2025: Amazon Web Services, Inc. (AWS), in collaboration with Accenture plc and Intel Corporation, introduced an advanced generative AI-powered solution to revolutionize RFP generation in the automotive industry. This tool expedites the process by automatically gathering critical company data and pre-filling content, reducing time and effort. Leveraging Intel-based Amazon Elastic Compute Cloud (Amazon EC2) instances for secure, scalable computing and Intel Tiber AI Studio, the solution enhances RFP quality, streamlines supplier communication, and improves evaluation efficiency.
Europe AI Cloud Computing Industry Segmentation
Automotive Artificial Intelligence (AI) refers to the integration of machine learning and AI technologies in the automotive industry's vehicle design, development, and operation. Automotive AI encompasses a wide range of applications, including autonomous driving, advanced driver assistance systems (ADAS), predictive maintenance, natural language processing for in-car voice recognition, and enhancing vehicle efficiency and safety. These technologies enable vehicles to interpret their surroundings, make decisions, and interact with drivers and passengers, thereby improving the driving experience, safety, and operational efficiency.
Europe AI cloud computing market in the automotive industry is segmented by services (public cloud [software-as-a-service (SaaS) platform-as-a-service (PaaS), infrastructure-as-a-service (IaaS)], private cloud [colocation, in-house (OPaas, STaas)]), country (United Kingdom, Germany, France, Italy, Spain, Poland, and the rest of Europe). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| Services | Public Cloud | Software-as-a-service (SaaS) | |
| Platform-as-a-service (PaaS) | |||
| Infrastructure-as-a-service (IaaS) | |||
| Private Cloud | Colocation | ||
| In-House (OPaas, STaas) | |||
| Country | United Kingdom | ||
| Germany | |||
| France | |||
| Italy | |||
| Spain | |||
| Poland | |||
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Europe AI Cloud Computing Market In Automotive Industry Market Research Faqs
How big is the Europe AI Cloud Computing Market In Automotive Industry?
The Europe AI Cloud Computing Market In Automotive Industry size is expected to reach USD 3.53 billion in 2025 and grow at a CAGR of 31.78% to reach USD 14.01 billion by 2030.
What is the current Europe AI Cloud Computing Market In Automotive Industry size?
In 2025, the Europe AI Cloud Computing Market In Automotive Industry size is expected to reach USD 3.53 billion.
Who are the key players in Europe AI Cloud Computing Market In Automotive Industry?
SAP SE, Amazon Web Services, Inc. (Amazon.com, Inc.), Google LLC, IBM Corporation and Microsoft Corporation are the major companies operating in the Europe AI Cloud Computing Market In Automotive Industry.
What years does this Europe AI Cloud Computing Market In Automotive Industry cover, and what was the market size in 2024?
In 2024, the Europe AI Cloud Computing Market In Automotive Industry size was estimated at USD 2.41 billion. The report covers the Europe AI Cloud Computing Market In Automotive Industry historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Europe AI Cloud Computing Market In Automotive Industry size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Europe AI Cloud Computing Market In Automotive Industry Industry Report
Statistics for the 2025 Europe AI Cloud Computing In Automotive Industry market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe AI Cloud Computing In Automotive Industry analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
