Global Automotive IoT Market Research Report: By Offering (Hardware, Software, and Services), By Connectivity (Embedded Systems, Tethered Systems, and Integrated Systems), By Communication Type (In-vehicle Communication, Vehicle-to-vehicle Communication, and Vehicle-to-infrastructure Communication), By Application (Navigation, Telematics, and Infotainment), and Region (North America, Europe, Asia-Pacific, and Rest of the World) Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2023-2031.
The Global Automotive IoT Market was valued at USD 110.50 billion in 2022, and is predicted to reach approximately USD 733.16 billion by 2031, at a CAGR of 23.4% from 2023 to 2031. Automotive IoT pertains to the incorporation of Internet of Things (IoT) technology within the automotive sector. Its objective is to connect vehicles to the internet, facilitating communication between vehicles, infrastructure, and external devices. The purpose of Automotive IoT is to enhance vehicle safety, optimize efficiency, and provide an improved driving experience. By utilizing IoT-enabled sensors, vehicles can gather and exchange real-time information on factors such as traffic conditions, weather, vehicle performance, and driver behavior. This data can be utilized for various applications, including predictive maintenance, intelligent navigation, and autonomous driving. Furthermore, IoT connectivity allows for the integration of smartphones and other devices with vehicles, enabling features like remote monitoring, vehicle tracking, and personalized infotainment services.
AUTOMOTIVE IOT MARKET: REPORT SCOPE & SEGMENTATION
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Report Attribute |
Details |
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Estimated Market Value (2022) |
110.50 Bn |
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Projected Market Value (2031) |
733.16 Bn |
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Base Year |
2022 |
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Forecast Years |
2023 - 2031 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Offering, By Connectivity, By Communication Type, By Application, & Region |
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Segments Covered |
By Offering, By Connectivity, By Communication Type, By Application, & Region |
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Forecast Units |
Value (USD Billion or Million), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Global Automotive IoT Market Dynamics
Market growth in the automotive industry is driven by the escalating demand for connected cars and the integration of advanced technologies into vehicles. The adoption of automotive IoT solutions has been propelled by the need for improved safety features, efficient vehicle management, and enhanced user experience. Moreover, government regulations mandating the inclusion of telematics and connected services in vehicles contribute to the expansion of the market. The automotive IoT market is further stimulated by the increasing popularity of autonomous vehicles and the growing emphasis on reducing carbon emissions. The advent of 5G technology plays a significant role as well, providing faster and more reliable connectivity, thus facilitating widespread implementation of IoT solutions in automobiles. The convergence of IoT with artificial intelligence, machine learning, and cloud computing further boosts market growth by enabling advanced analytics and intelligent decision-making in the automotive industry.
Global Automotive IoT Market Drivers
The automotive IoT market is driven by the growing demand for connected cars. Consumers increasingly seek vehicles equipped with advanced connectivity features, such as internet access, entertainment systems, and smart applications. This demand is fueled by the desire for seamless integration with smartphones, personalized infotainment, and enhanced driving experiences.
Restraints:
The widespread adoption of automotive IoT solutions raises concerns regarding data security and privacy. Connected vehicles generate a vast amount of data, including personal and sensitive information. Ensuring the protection of this data from cyber threats and unauthorized access is crucial to maintain consumer trust and regulatory compliance.
Opportunities:
The growth of Automotive IoT presents opportunities for the advancement of Vehicle-to-Everything (V2X) communication. V2X technology enables vehicles to communicate not only with each other but also with infrastructure, pedestrians, and other devices. This opens up avenues for enhanced safety, traffic management, and efficient transportation systems. The integration of IoT in V2X communication can enable real-time exchange of critical information, reducing accidents, optimizing traffic flow, and enabling new applications like smart parking and intersection management.
Segment Overview
By Communication Type
Based on the communication type, the global automotive IoT market is segmented into in-vehicle communication, vehicle-to-vehicle communication, and vehicle-to-infrastructure communication. The in-vehicle communication segment is dominating the market with the largest revenue share of around 37.5% in 2022. This technology facilitates communication between different components within the vehicle and enables communication between vehicles and external devices. In-vehicle communication plays a vital role in enhancing safety, efficiency, and the overall driving experience. It allows for the real-time exchange of data between various systems, including engine management, brake control, and entertainment systems. This leads to improved vehicle performance and functionality. Additionally, in-vehicle communication enables advanced driver assistance systems and cooperative intelligent transportation systems.
By Offering Type
Based on the offering type, the global automotive IoT market is segmented into hardware, software, and services. The hardware segment is dominating the market with the largest revenue share of around 55.2% in 2022. Microcontrollers are projected to hold the largest market share in the hardware segment of the automotive IoT market. These compact integrated circuits play a crucial role in enabling connectivity and intelligence in automotive systems. Equipped with a microprocessor, memory, and various peripheral interfaces, microcontrollers efficiently control and manage diverse functions within vehicles. Their application spans a wide range of automotive systems, including infotainment systems, engine control units, safety systems, and sensor modules. Microcontrollers provide the necessary processing power and real-time responsiveness to handle data processing, communication protocols, and sensor integration.
By Application
Based on application, the global automotive IoT market is segmented into navigation, telematics, and infotainment. The navigation segment is dominating the market with the largest revenue share of around 43.5% in 2022. IoT-enabled navigation systems have a vital function in delivering real-time information and guidance to drivers, thereby enhancing their driving experience and safety. These systems make use of IoT technology to gather and analyze data from multiple sources, including GPS, traffic sensors, and mapping services. By leveraging this data, they provide valuable features such as turn-by-turn directions, traffic updates, and route optimization. The increasing desire for advanced navigation capabilities, such as voice recognition, augmented reality, and predictive analytics, has been a driving force behind the widespread adoption of IoT-enabled navigation systems.
Global Automotive IoT Market Overview by Region
By Region, the global Automotive IoT Market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. In 2022, North America emerged as the leading market, holding a significant share of approximately 42.5% in the global market. The region, known for its prominent automotive manufacturers and technology firms, acts as a center for innovation and the advancement of IoT in the automotive sector. The region gets benefits from a robust telecommunications infrastructure and widespread internet access, facilitating seamless connectivity for IoT-enabled vehicles. Moreover, the region showcases strong consumer demand for connected cars, advanced safety features, and personalized infotainment services. This growing demand has spurred the adoption of automotive IoT solutions in North America. Additionally, supportive government initiatives and regulations that promote the deployment of connected vehicles have played a pivotal role in driving the growth of the automotive IoT market in the region.
Global Automotive IoT Market Competitive Landscape
The global automotive IoT market is characterized by the dominance of a select few prominent players who have successfully established a strong regional presence. These key participants demonstrate a steadfast commitment to ongoing research and development initiatives. Moreover, they actively pursue strategic growth endeavors such as product development, launches, collaborations, and partnerships. Through the implementation of these strategies, these companies aim to strengthen their market position and expand their customer base, effectively capturing a substantial share of the market.
Some of the notable players in the global automotive IoT market are NXP Semiconductors, Harman, Robert Bosch, Thales, TomTom International, IBM, Geotab Inc., Texas Instruments, Intel Corp., Eurotech, STMicroelectronics, Renesas, Infineon Technologies, Airbiquity, Qualcomm, Visteon, Vodafone Group, Microsoft Corporation, Alphabet Inc., AT&T, Cloudmade, and various other key industry players.
Global Automotive IoT Market Recent Developments
In January 2023, VinFast and NXP Semiconductors have partnered to collaborate on the future generation of automotive applications intended for VinFast vehicles. This collaboration aims to assist VinFast in achieving its goal of producing intelligent, eco-friendly, and connected electric vehicles.
Scope of the Global Automotive IoT Market Report
Automotive IoT Market Report Segmentation
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ATTRIBUTE |
DETAILS |
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By Offering |
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By Connectivity |
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By Communication Type |
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By Application |
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By Geography |
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Customization Scope |
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Pricing |
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Objectives of the Study
The objectives of the study are summarized in 5 stages. They are as mentioned below:
To identify and estimate the market size for the global automotive IoT market segmented by offering, by connectivity, by communication type, by application, region, and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of automotive IoT between 2019 and 2031.
To identify and infer the drivers, restraints, opportunities, and challenges for the global automotive IoT market
To find out the factors which are affecting the sales of automotive IoT among consumers
To identify and understand the various factors involved in the global automotive IoT market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
Intended Audience
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
