The global IoT automotive market is growing at a considerable CAGR of 25.0% during the forecast period. Government initiative and funding are some of the prime factors affecting and driving the market. Rising awareness regarding passenger’s safety and security, smartphone features demanded in cars are also estimated to be the important factors that are contributing significantly towards the growth of the market. However, issues related to privacy and security along with high-cost involvement in maintenance are major factors constraints that are hindering the growth of the global IoT automotive market across the globe. 

Further, various industry players having collaboration and emerging 5G technology are key factors that are creating opportunities for the market. New product launches and collaboration in the market are likely to drive the growth of the global IoT automotive market. For instance, in November 2020, one of the acquired companies of Qualcomm Technologies, Inc. named NXP Semiconductors had done collaboration in order to offer connected vehicles to customers with the support of amazon web services (AWS). This collaboration will enable data-driven services along with a reduction in cost.    

Impact of COVID-19 on the Global IoT Automotive Market

The global IoT automotive market is hardly hit by the COVID-19 pandemic since December 2019. The COVID-19 pandemic in the major economies has disrupted manufacturing and transportation activities. Due to COVID-19 pandemic disturbance was observed in order to do export related to different parts by countries and a large number of manufacturing processes got disturbed across the European countries affecting the market in an adverse manner. 

Segmental Outlook 

The market is segmented based on component, communication type and application. Based on component the market is segmented into hardware, software and services. By communication type, the market is segmented into in-vehicle communication, vehicle-to-vehicle communication and vehicle-to-infrastructure communication. Further, by application, market is segmented into infotainment, telematics and navigation. 

Global IoT Automotive Market Share by Communication Type 2020 (%)

Based on the communication type, vehicle-to-vehicle communication is mostly used and demanded in the vehicles as it does not rely for communication on any of the third-party networks such as a cellular network. This vehicle-to-vehicle communication supports the purpose of communication among the vehicles. Certain important information that includes movement of traffic, road conditions, speed limit among others could be transferred and broadcasted through it by a vehicle. These all offerings are some factors that are enabling the segment to grow in the market. 

Regional Outlooks

The global IoT automotive market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. North America held a considerable share in 2020 in the global IoT automotive market. Some factors that are boosting the market growth in North America are advanced technology infrastructure along with leading manufactures and players present in the region. Moreover, in Europe for the adoption of IoT, various initiatives are made by the government along with the implementation of stringent rules and regulations related to telematics that are some factors driving the growth of the market in this region.

Global IoT Automotive Market, by Region 2021-2027

Asia-Pacific will have Considerable Growth in the Global IoT Automotive Market

Asia-Pacific region is expected to witness significant growth opportunities for the market. Increasing government initiatives for traffic management systems along with advancement in technology in the automotive sector in emerging economies of the region are likely to drive the growth of the regional market. Further, due to wide internet connectivity along with network speed that is high in India, China and South Korea are also some of the factors that are affecting and impacting the growth in this market. 

Market Player Outlook

Key players of the global IoT automotive market are Cisco Systems, Inc., IBM, Qualcomm Technologies, Inc., Thales Group, and TEXAS INSTRUMENTS INC. among others. To survive in the market, these players adopt different marketing strategies such as product launches and collaboration. For instance, in December 2020, Apple Inc. had set forth self-driving car technology with a mission target to offer it by 2024 to its customer with a passenger vehicle that enables breakthrough battery technology involved in it.

In May 2020, BMW group will bring artificial intelligence (AI) in its logistics for increasing its performance. The presence of a navigation system will support the machine in order to identify and apply its responses at places where ever needed and required.

In May 2019, Tech Mahindra Ltd. along with sigma systems had launched a platform that is subscription management for connected car services. This platform will be fully automated along with providing various offerings including open API’s for bringing proper and effective solutions together for the automotive industry. 

In April 2020, NXP Semiconductors had introduced its WIFI-6 portfolio that will expand its product by extending its technology into IoT, automotive along with the industrial application.

In January 2019, Samsung and Harman had put forward one of the platforms known as the digital cockpit. This platform will provide IoT solutions in automotive that will be offering connectivity and safety to its customer.  

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global IoT automotive market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

    • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market-entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where in the market.