The global automotive IoT market size was valued at USD 102 billion in 2022 and is projected to surpass around USD 811.72 billion by 2032. The global automotive IoT market is expected to grow at a compound annual growth rate (CAGR) of 23.10 during the forecast period 2023 to 2032.
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As there has been no growth in the demand for vehicles that are user friendly which make use of IoT and increased amount of investments in developing smart cities and smart parking is expected to drive the market growth during the forecast period. In order to reduce the number of fatalities and injuries caused due to the road accidents the market for automotive IoT is expected to grow.
Due to an increased use of smart devices especially in the automobiles the demand for automotive IoT is expected to grow. Major manufacturers of automobiles are concentrating on manufacturing vehicles that make use of software's. In order to obtain real time information which is extremely useful for the drivers there shall be an increase in the use of automotive IoT. Increased use of Internet of Things in the automotive's also helps in promoting three different types of internal as well as external communication beard it promotes the in vehicle communication, vehicle to the infrastructure communication and vehicle to vehicle communication.
In order to provide a comfortable and efficient Johnny there is an increased use of IoT in automotive sector. There's a growth in the demand for the smart apps that are connected with the computer devices or other mechanical devices which are extremely helpful in transferring data automatically. Please do use of IoT and constant research and developments have being fruitful in providing information regarding the users of the vehicle and other data that is real time.
During the pandemic there was a negative effect only automotive IoT market. The demand for these vehicles had come down to a great extent. It was reported that there was a 16% Manufacturing during the year 2020. But on the other hand there was a great demand for electronic vehicles. The sales of the electronic vehicles had gone up during the pandemic. There was an increase of about 43% during the pandemic. Maximum sales were generated through the Asia Pacific region. China dominated the sales during the pandemic. Apart from China the European nations also saw an increase in the sales of the electronic vehicles during the pandemic. The sales of the conventional vehicles had come down to a great extent during the pandemic. Apart from that there was a shortage for semiconductors which affected the market to a great extent. Restraints in movement and problem with the supply chain logistics also affected the market to a great extent. Post pandemic the demand for conventional vehicles is also growing and the demand for electronic vehicles is also expected to grow. All of these will be favorable for the growth of the IoT in automobiles during the forecast period.
There's an increase in the demand for IoT in the automobiles. Connected vehicles are in great demand. Current initiatives taken by the government which are beneficial for the development of smart cities will lead to the market growth. Increased use of IoT in the management of traffic is also expected to grow. The government of various regions or the authorities is constantly providing funds for increasing the demand for autonomous vehicles. There is a growth in the demand for the usage of infotainment in the vehicles. In order to provide better safety to the drivers there is a growth in the demand for safety solutions which are provided with the auto motives. All of these factors happen to be the driving force for the growth of the market. In the recent years the demand for connected vehicles has grown drastically. In the developed nation's especially of the north American region there is a greater demand for connected vehicles. Increase number of fatalities and injuries caused due to the road traffic accidents have led to a greater demand for autonomous vehicles.
Governments of these nations are investing in order to boost the sales of autonomous vehicles. There are many stringent policies in place have made it mandatory to provide a few services in the automotive sector that is helpful in preventing road accidents. Quotation authority of the European region has made it mandatory that every car should have the E call system. This capability happens to become very important in case there are any emergency cases. The governments of various regions are also making it mandatory to provide a few services for connectivity. Increase in the number of connected technologies that are integrated along with the automotive's will drive the market growth during the forecast period. Increase in the amount of the poor capita income of the population in the developed countries there shall be a greater demand for automated systems. There is a growth in the demand for the infotainment services in the automotives in the developed nations.
Automated systems as well as the infotainment are becoming a basic necessity. As there has been a growth in the demand for hybrid vehicles as well as electric vehicles in the recent years the market for IoT in automobiles is expected to grow. Favorable government policies and efforts taken by the manufacturers are leading to a continuous growth in the sales of these vehicles. Stringent government policies that are aiming at reducing the carbon emissions across the globe will also create a greater demand for the hybrid vehicles as well as the electric vehicles in the coming years. The sales of these vehicles are increasing exponentially and during the pandemic the demand for the hybrid vehicles as well as the electric vehicles has grown well. The increased use of IoT in the vehicles will be able to provide location of the charging points that are on the way. All this type of information will be displayed that will be extremely beneficial to the drivers. Real time information about the battery of the vehicles will also be displayed. Increased use of IoT in the vehicles will be extremely beneficial to monitor the components of the vehicle. The demand for the IoT in the automotive is expected to grow across the developed as well as the developing economies in the world.
Communication Type Insights
On the basis of the type of communication, the vehicle-to-vehicle segment is expected to dominate the market in the coming years period the vehicle-to-vehicle segment has accounted largest market in the past and it is expected to grow well during the forecast period. There's a growing demand for the vehicle-to-vehicle communication as it is helpful in communicating to the other vehicles that are nearby. It is beneficial in sharing the information related to the traffic on the road.
Vehicle to vehicle communication provides safer driving as it provides real time information from one person to another. The devices which are used in order to transfer real time information from the vehicle to the infrastructure makes use of cameras and the RFID readers. The information from the street lights traffic lights and parking meters are also conveyed in an efficient manner. A mesh network is provided for the communication of vehicle to vehicle through the use of wireless signals. The use of communication in the vehicles or through the infrastructure has been an extremely beneficial change which has boosted the sales of automobiles.
On the basis of the offerings, the software segment is expected to dominate the market in the coming years period this segment has had the largest market share in the past and is expected to grow well during the forecast period. As there is been a great demand for smart vehicles due to an increase in the investment from the government and an increase in the purchasing power of the consumers. The forecast period is expected to be favorable for the sales of the autonomous vehicles. Increased use of software helps in providing better experience to the drivers or the passengers. Softwares are helpful in providing real time information which is extremely beneficial for the passenger or the driver to make decisions. All of these factors are expected to boost the sales of the cars during the forecast period.
In order to monitor the condition and the working off the batteries that are utilized in these electric vehicles the market is expected to grow well. All the other parts of the vehicle which are associated with the software's which enhanced the driving experience will also be helpful in driving the market growth period.
Depending upon the application, the navigation segment has dominated largest market share in 2022. Increased use of navigation systems which provide detailed information about the traffic, alternative routes, road conditions etc. will drive the market growth of the navigation segment.
Apart from the navigation segment the infotainment segment and the telematics segment will also grow well during the forecast period. There is a great demand for infotainment in all the vehicles. Increased purchasing power has created a greater demand for this segment.
On the basis of geography, the North American region is expected to dominate the market during the forecast period. It shall hold a large market share during the forecast period. There are many major manufacturing companies located in this region. They shall be one of the factors that will drive the market growth in this region. There has also been an increase in the investments made by the governments and different companies of this region that are helpful in providing smart parking to the vehicles.
Growing demand for smart cities in the North American region will also drive the market growth in the coming years. In order to provide safety to the passengers as the number of fatalities due to road accidents has increased in this region the governments are making a few policies that shall provide safety to the consumers by integrating a few smart features in the vehicles.
Key market developments
In the year 2021 a new accessory was launched which would be helpful in tracking the vehicles. The accessory was introduced by Volvo car. The technology used in the tracking accessory was the automotive VTS S5. This technology partner is the Vodafone automotive. This technology will be helpful in providing telematics system, they shall provide parking assistance and anti theft functions. In order to recover the stolen vehicles Internet of Things offered by Vodafone will be used and it is operational in many European countries as well as the world.
Report Scope of the Automotive IoT Market
|Market Size in 2023||USD 125.05 Billion
|Market Size by 2032||
USD 811.72 Billion
|Growth Rate from 2023 to 2032||CAGR of 23.10%|
|Forecast Period||2023 to 2032|
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