Factors such as the rising integration of intelligent, compact, lightweight electrical and electronic systems in passenger vehicles and the surging need to monitor and analyze real-time automobile data to optimize passenger and vehicle safety will boost the automotive data logger market growth during the forecast period (2021–2030). According to P&S Intelligence, the market revenue reached around $3 billion in 2020. Nowadays, the mounting investments being made by market players in the advancement of automotive data logger systems have become a prominent market trend.

One of the key growth drivers for the market is the booming demand for in-vehicle connectivity features worldwide. To meet this demand, automakers are increasingly integrating in-vehicle connectivity solutions in their offerings, through partnerships with consumer electronics and software vendors. The installation of advanced features such as automotive data logger solutions enables automobile manufacturers to collect data and then provide information about the functions of systems such as lane assist and automatic brake.

At present, the companies operating in the automotive data logger market are primarily focusing on product launches to march ahead in the competition. For instance, in March 2019, Vector Informatik GmbH launched Indigo 6 for comfortable editing, strong debugging support, and smooth testing of diagnostic sequences. Likewise, in April 2021, Xylon d.o.o. introduced logiRECORDER, an automobile video data logger equipped with NVIDIA DRIVETM AGX scalable artificial intelligence (AI) platform. This AI-enabled video data logger helps in speeding up the validation of robust AI-supported automotive systems.

Categories under the channel segment of the automotive data logger market are controller area network (CAN) & controller area network flexible data (CAN FD), local interconnect network (LIN), FlexRay, and ethernet. Among these, the CAN & CAN FD category accounted for the largest market share in 2020, due to the escalating use of this data-communication protocol in vehicles for allowing communications and transmitting data at 1 Mbps speed with an extensive level of data integrity. Due to these benefits, the category will continue to hold the dominant position throughout the forecast period.

Globally, the North American automotive data logger market is expected to generate the highest revenue during the forecast period. This will be due to the increasing integration of advanced features in automobiles and booming demand for enhanced customer experience in the region. Moreover, the strong presence of leading market players in the U.S. and Canada also contributes to the market growth in the region. Additionally, the rapid introduction of new and improved products in North America will also facilitate the market growth in the foreseeable future.

Whereas, Asia-Pacific (APAC) is expected to exhibit the fastest growth in the automotive data logger market throughout the forecast years, due to the existence of a vast automobile manufacturing base in the region. Moreover, the accelerating industrialization rate and flourishing infrastructure sector in APAC nations will also propel the market growth in the region in the upcoming years. Besides, the surging adoption of advanced electronic components in automobile architecture will also augment the market growth in the immediate future.

Therefore, the rising demand for in-vehicle connectivity features and accelerating technological advancements in the automotive sector will drive the market growth in the forecast years.