Automotive IoT Market Size to Worth Around USD 621.8 Bn by 2030
Precedence Research
7 min read
Precedence Research
According to Precedence Research, the global automotive IoT market size is expected to worth around USD 621.8 billion by 2030 and is expected to drive growth at a CAGR of 25.13% over the forecast period 2022 to 2030.
Tokyo, July 27, 2022 (GLOBE NEWSWIRE) -- The global automotive IoT market size was accounted at USD 82.7 billion in 2021. The North American region is expected to dominate the automotive IoT market during the forecast. As a large number of manufacturers of the IoT based automotive's a present in the North American region. There has been an increase in the investments nearby the major manufacturers and the government which have proved to be beneficial for the growth of the market. In the past the North American region has had the largest market share due to the technological advancements in this region.
Major manufacturing companies in the North American region are focusing on providing smart parking as well as smart cities which shall drive the market growth during the forecast period. There has also been a great demand for the electric vehicles as well as the fuel cell vehicles in the North American region. The growing concerns for the number of fatal road accidents and the injuries caused by these road accidents has led the government to mandate a few features in the automobiles. Increased use of IoT in the automotive it will be extremely helpful in reducing the road traffic accidents in the forecast period and this is expected to drive the market growth in the coming years. Increased use of the collision avoidance systems in the vehicles will also be beneficial in driving the market growth of the North American region during the forecast period.
Report Highlights
The software segment will have a larger market share due to a greater use of software in the automotive's. Growing demand for smart parking and automated driving will be responsible for the growth of this segment. Increased use of software shall be extremely beneficial in providing real-time data pertaining to the condition the batteries which may be helpful in predictive maintenance.
On the basis of the type of communication, the vehicle-to-vehicle communication segment will have a larger market share due to a growing trend and a greater demand for this type of communication. In the recent years the vehicle-to-vehicle communication segment has grown to a great extent.
On the basis of application, the navigation segment will dominate the market in the coming years. Navigation system is helpful in providing real time data regarding the traffic on the roads, the condition of the roads and the time required to reach the destination all of these factors will drive the growth of the segment in the coming years period there is also a growing demand for infotainment in the vehicles. Increase in the purchasing power and growing demand for comfort and luxury will drive the market growth.
Texas Instruments (US), Intel (US), NXP Semiconductors (Netherlands), TOMTOM (Netherlands), Robert Bosch (Germany), Google (US), Apple (US), General Motors (US), Audi (Germany) and Others.
Market dynamics
Drivers
The market is expected to grow during the forecast period as there has been an increase in the investments made by the companies as well as the government further smart city initiatives. Governments and companies are also focusing on providing smart parking to the vehicles and it is expected to drive the market growth period in order to provide better safety and comfort for the passengers as well as the driver the demand for the vehicles that seem to be user-friendly is expected to grow and drive the market growth in the coming years. Due to an increase in the road traffic accidents and increase in the deaths because of these accidents will drive the market growth during the forecast period.
Automotive IoT has been commercialized in the North American region and many other developed countries which has proven to be extremely favorable for the growth of the market. Increased use of artificial intelligence that shall support the parking in navigation in the vehicles will drive the market growth. Real time information about the parking spots, parking sensors or beneficial for the growth of the market. Inbuilt communication will also be beneficial in providing road accidents.
Restraints
Smart vehicles or the autonomous vehicles are expensive as compared to the convenient vehicles. This shall be a major restraint in the group the market in the coming years. due to an increased use of the sensors the amount of information that will require processing will also need more processing power, and this shall increase the cost of the vehicles.
Opportunities
During the pandemic there has been a great demand for hybrid electric vehicles and the electric vehicles this is expected to drive the market growth of IoT in the automotive. Increase in the number of sales of the vehicles will drive the market growth during the forecast period. As the system is helpful in providing real time data making decisions on the spot has become easier. The number of road accidents it will also reduce due to the use of smart devices and smart systems.
The use of the system should ensure a safe and comfortable journey of the passengers as the road accidents due to human error will be reduced to a great extent. Increased investments from the government and the manufacturers in increasing the production of vehicles will also drive the market growth in the coming years period policies from the governments that have made mandatory integration of IoT in the vehicles will drive the market growth in the coming years. It helps in the predictive maintenance of the vehicles which proves to be beneficial.
All the vehicles that make use of IoT may not always work effectively. For all the functions to perform smoothly there is a need for a stable Internet connectivity. Requirement of the Internet happens to be the infrastructure needed for the smooth functioning of these cars and in the developing nations Internet connectivity may be a problem. In the rural areas the use of such vehicles may not be of any use. There is a greater demand for these cars in the urban areas and they shall perform well in these areas. There is an increased risk of security. Sensitive information can be stolen add the breach of this information movie be at times responsible for accidents.
Recent developments
By providing anti-theft feature in the vehicles along with parking assistance a new accessory which will be helpful in tracking these vehicles was launched by Volvo car in the year 2021, and the technology used is VTS S5 provided by Vodafone automotive.
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