Market Research Report
Global Automotive IoT Market - 2022-2029
|Global Automotive IoT Market - 2022-2029|
Published: June 24, 2022
Content info: 250 Pages
Delivery time: 2 business days
The global automotive IoT market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).
The linked automobile has been the most visible and well-known example of the Internet of Things. Though cars are increasingly software-driven, the actual IoT breakthroughs in the auto sector are taking place behind the scenes, as both software and automakers claim to be in the driver's seat. The IoT-Internet of Things is a network of organized computing devices, digital and mechanical devices and data transfer independence.
Furthermore, the automotive IoT market presentation highlights the need for automated devices to analyze real-time data on vehicle and fleet operators. It is also linked to the smart automotive internet, which allocates three types of communications: in-vehicle, vehicle-to-vehicle and vehicle-to-infrastructure.
The automobile has been linked for years in ways that now appear to be regular. Indeed, automakers have begun to connect cars to data streams. In addition, when it comes to integrating technology and drivers, the automobile industry has a more prosperous and longer track record of success than any other business. The benefits of real-time traffic and incident alerts, the increased telematics mandates by numerous governments, the growing need for assisted and automated driving and customers' demand for smartphone functionality in automobiles are significant drivers of market growth.
The growing digital transformation in automotive
The Internet of Things (IoT) enables digital transformations and has already established itself in various industries, including construction, agriculture, healthcare, retail and technology firms. IoT also plays a fantastic role in the vehicle sector with built-in capabilities. Volkswagen, a pioneer in the automobile business, has indicated that automobiles now rely on electronics and software and that by 2020, the software would account for 50% of a vehicle's worth.
The company has been effective in adopting linked vehicles. Operational advantages like predictive maintenance, telematics and software upgrades are significant potential for carmakers. Furthermore, value-added services such as additional built-in intelligence to assist the owner and self-driving autonomous vehicles are available.
Real-time data collection and communication
An IoT automobile with several built-in IoT qualities is being developed, exploiting data collected by connected cars in various ways. For example, traffic control systems can offer real-time data from related autos, which aids in the avoidance of traffic congestion and accidents. These advantages provided by IoT in the automobile sector are propelling the growth of the automotive IoT market. Furthermore, automobile manufacturers, telecommunications service providers and software developers collaborate to create a connected car. A connected vehicle that uses onboard sensors and internet connectivity improves the user's in-car experience.
Connected cars can surf the internet while driving; however, connectivity between cars and communication between automobiles and other devices is limited. There are now only a few internet-enabled cars, but that number is expected to grow significantly in less than a decade. Again, smartphone exposure will undoubtedly aid the exponential growth of the connected car sector. Furthermore, the problem of gas emissions from vehicles is rising pollution levels.
Issues related to security and high costs
High costs are a major obstacle to the growth of the automotive IoT industry. Vehicle parts, software and sensors are highly expensive in Automotive IoT. Aside from the high cost of equipment, a significant amount of money is spent on the R&D of self-driving cars for continual upgrading. Furthermore, while autonomous vehicles have been successfully programmed, unanticipated technical problems may occur due to ongoing construction.
Furthermore, security has become a top priority with the increasing deployment of connected vehicles. Autonomous cars are more vulnerable to hacking because they are constantly monitored and tracked, potentially resulting in the gathering of personal data. Because of the concerns above, demand for Automotive IoT will be greatly hampered, limiting its market potential.
COVID-19 Impact Analysis
Over the previous 18 months, most industries globally have suffered a setback due to significant disruptions in their separate manufacturing and supply-chain operations due to numerous precautionary lockdowns and other limitations imposed by governing bodies worldwide. The same is true for the global automotive IoT market.
Furthermore, consumer demand has subsequently decreased as people are now more focused on minimizing non-essential expenses from their various budgets as the outbreak has significantly impacted the general economic situation of most people. Over the projected period, the factors are expected to weigh on the revenue trajectory of the worldwide automotive IoT market. However, when individual regulating bodies begin to loosen these enforced lockdowns, the worldwide automotive IoT market is projected to recover.
By communication type, the automotive IoT market is segmented into in-vehicle communication, vehicle-to-vehicle communication and vehicle-to-infrastructure communication.
The implementation of various regulations is driving the vehicle-to-vehicle communication segment.
Vehicle-to-vehicle communication is both speedy and dependable, giving drivers real-time alerts. It does not suffer from the issue of vehicle shadowing, which occurs when a smaller car is shadowed by a larger vehicle, preventing it from communicating with roadside equipment. Vehicle-to-vehicle communication allows a vehicle to broadcast its location, speed, steering-wheel position, brake status and other information to other cars.
The elements driving the vehicle-to-vehicle communication market include implementing safety and security, forward hazard warning, curve speed warning and overtake vehicle warning. The key factors driving the vehicle-to-vehicle communication industry are the limitations of already deployed systems, which employ radar or ultrasound to detect few car lengths and cannot pass the nearest barriers.
Various government regulations regarding automotive in North America
North America dominates the automotive IoT industry. U.S. government presented legislation requiring companies to provide basic security in IoT devices. According to U.S. Department of Transportation's National Highway Traffic Safety Administration, in 2015, 1.5 million autos were recalled due to cyber security flaws. Furthermore, the Department of Transportation released a Notice of Proposed Rulemaking (NPRM) that would authorize V2V communication technology to lessen the possibility of a vehicle crash on America's streets, which, once again, contributes to the market's expansion in North America.
American drivers spend an estimated 17 hours per year seeking parking, costing the country US$73 billion in lost time, fuel and pollutants. One of the primary causes of these high emissions is incomplete fuel combustion. Vehicle emissions can be monitored and controlled using an IoT-based system comprising smoke and temperature sensors and GSM and GPS-based modules. A design like this can help the environment by reducing air pollution generated by vehicles. This advantage of pollution control is propelling the region's market forward.
The automotive IoT industry is highly competitive due to numerous large and small firms working in domestic and foreign markets. The market looks to be fragmented because of multiple technological behemoths in the industry. Product innovation and mergers & acquisitions are vital strategies the market's top players use.
Key players in the global market of automotive IoT Market include Texas Instruments Inc., Intel Corporation, NXP Semiconductors N.V., Tomtom N.V., Cisco Systems, Inc., Microsoft Corporation, Google Inc, Thales SA, Ford Motor Company and Audi AG.
Texas Instruments Inc.
Overview: Pioneer in the world's move from vacuum tubes to transistors and subsequently to integrated circuits (I.C.s) - and the firm has been advancing I.C. technology and the ability to create I.C.s in large amounts reliably. It designs, manufactures, tests and sells analog and embedded semiconductors that enable our approximately 100,000 global customers to develop distinctive industrial, automotive, personal electronics, communications equipment and enterprise systems solutions. The company operates 10 wafer fabs, seven assembly and test factories and various bump and probe facilities throughout its 14 manufacturing sites worldwide.
Product Portfolio: The company has a diverse portfolio of 80,000 products used to manage power properly, precisely sense and transmit data and provide the primary control or processing in their electronic systems. The company offers a wide range of new solutions for modern automotive, from headlights to taillights and all systems in between.
Key Development: Texas Instruments Inc. said in 2021 that it will pay US$900 million for Micron Technology's 300-mm semiconductor facility (or "fab") in Lehi, Utah. The Lehi fab will be T.I.'s fourth 300-mm fab, joining DMOS6, RFAB1 and the soon-to-be-completed RFAB2. Aside from its significance as a 300-mm fab, the acquisition is a strategic move, as Lehi will begin with 65-nm and 45-nm production for T.I.'s analog and embedded processing products and will be able to expand beyond those nodes as needed.
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