Global IoT in Automotive Market Set for Explosive Growth: Forecast to Grow at a CAGR of 25.2% by 2027
Published | 26 November 2021
Automotive IoT' refers to the integration of IoT technologies into automotive systems to develop new applications and solutions that can enhance the intelligence of cars, as well as make them safer and more fuel efficient. The global IoT in the automotive market is growing at a high CAGR because of the flourishing automobile products and advanced features of IoT…
A recent study, conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global IoT in the automotive market was worth USD 47.4 billion in 2020. The market is estimated to grow at a CAGR of 25.2%, earning revenue of around USD 227.7 billion by the end of 2027. The global IoT market in the automotive industry is growing rapidly due to the increasing application of IoT to provide advanced features like access to traffic information, improving driving behavior, remote vehicle diagnostics and predictive maintenance, monitoring road conditions, and fuel usage. In addition to establishing connections between vehicles, IoT is also being used to enable vehicle-to-vehicle connectivity. Although, the increased risk of data theft and cyberattacks may act as a huge hindrance to market growth.
Growing Consumer Demand for Advanced Connectivity Features and Infotainment Systems Driving the Global IoT in Automotive Market
There is a growing demand for a better infotainment system in the car, with the advent of smart apps that provide in-car navigation, telematics, and entertainment. IoT helps solve the problems of bad fleet management by offering better analytics and control, such as fuel consumption, idling, travel conditions, and travel time, attracting consumers' interest. Such features are fueling the demand for IoT in automotive among consumers. Furthermore, increasing concern towards the safety and security of the passengers is likely to play a crucial factor in driving the market growth during the forecast period.
Global IoT in Automotive Market - By Communication Type
Based on communication types, the global IoT in automotive market is segmented into in-vehicle, vehicle-to-vehicle, and vehicle-to-infrastructure. Accordingly, the vehicle-to-vehicle segment accounts for the majority of the market as it prevents accidents by allowing vehicles in transit to exchange position and speed data over an ad hoc mesh network. Due to an increasing number of road accidents around the world, vehicle-to-vehicle IoT solutions are being widely adopted by automobile manufacturers to advance their safety features, which is projected to drive market growth over the forecast period.
Global IoT in Automotive Market - By Application
Based on applications, the global IoT in the automotive market is segmented into navigation, telematics, and infotainment. The navigation segment accounted for the largest market share in 2020. With the Internet of Things, a vehicle's navigation system can find its direction with greater accuracy. Using a satellite navigation device to determine its position can calculate the shortest path and best meet a driver's needs. The infotainment segment, however, is forecast to grow the fastest during the forecast period. Infotainment systems combine entertainment and information delivery, which is a new focus for customers. Car manufacturers are pursuing IoT technology to improve vehicle entertainment features, which is why it is important to implement it in infotainment.
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Global IoT in Automotive Market - Regional Insights
North America, Europe, Asia-Pacific, Latin America, and Middle-East & Africa make up the global IoT in automotive market. Among all the regions, North America dominates the global IoT in the automotive market. However, the Asia-Pacific region is projected to witness the highest CAGR during the forecast period. Developing countries like China, India, Japan, South Korea, are emerging as the leading automotive manufacturers worldwide. Furthermore, improving mobile networks and better connectivity in the APAC countries are anticipated to offer lucrative growth opportunities to the region’s IoT in the automotive market in the forecast period.
Impact of COVID-19 on Global IoT in Automotive Market
The global IoT in the automotive market was negatively impacted by the sudden outbreak of the COVID-19 pandemic. The production of automobiles was obstructed due to the nationwide lockdowns imposed by several countries. Due to this, the demand for IoT solutions and services decreased, incurring huge losses to the service providers. Furthermore, restrictions on mobility and decreasing disposable incomes of consumers due to wage cuts and job losses during COVID-19 also negatively affected market growth for IoT-enhanced automotive.
The leading players in the global IoT in automotive market are Texas Instruments Inc., Intel Corporation, General Motors, Ford Motor Company, Apple Inc., Cisco Systems Inc., IBM Corporation, Google Inc., Microsoft Corporation, Robert Bosch GmbH, Audi AG, NXP Semiconductors, TOMTOM, Thales SA, Vodafone, AT&T, and other prominent players.
The global IoT in the automotive market is dominated by leading industry players, such as Ford, IBM, Google, Microsoft, etc. With technological advances, more and more IoT solutions startups are also emerging, providing tough competition to these established players. The market players are constantly launching new IoT services and solutions to stay ahead of the pack. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global IoT in automotive market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global IoT in automotive market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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