The Automotive IoT Market is expected to register a CAGR of 19.5% from 2025 to 2031, with a market size expanding from US$ XX million in 2024 to US$ XX Million by 2031.
The report is segmented by Offering (Hardware, Software, Services), by Connectivity Form Factor (Embedded, Tethered, Integrated), by Application (Navigation, Telematics, Infotainment)
Purpose of the ReportThe report Automotive IoT Market by The Insight Partners aims to describe the present landscape and future growth, top driving factors, challenges, and opportunities. This will provide insights to various business stakeholders, such as:
- Technology Providers/Manufacturers: To understand the evolving market dynamics and know the potential growth opportunities, enabling them to make informed strategic decisions.
- Investors: To conduct a comprehensive trend analysis regarding the market growth rate, market financial projections, and opportunities that exist across the value chain.
- Regulatory bodies: To regulate policies and police activities in the market with the aim of minimizing abuse, preserving investor trust and confidence, and upholding the integrity and stability of the market.
Automotive IoT Market Segmentation
Offering- Hardware
- Software
- Services
- Embedded
- Tethered
- Integrated
- Navigation
- Telematics
- Infotainment
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South and Central America
Strategic Insights
Automotive IoT Market Growth Drivers- Increasing Demand for Connected Vehicles: The growing consumer preference for connected vehicles is a significant driver for the Automotive IoT market. Consumers are increasingly looking for vehicles that offer smart features, such as real-time navigation, remote diagnostics, and infotainment systems. This demand encourages automotive manufacturers to integrate IoT technologies into their vehicles, enabling seamless connectivity with smartphones and other smart devices. As manufacturers strive to meet consumer expectations for enhanced experiences and convenience, the adoption of IoT solutions in the automotive sector is rapidly increasing.
- Advancements in Vehicle Safety and Automation: The push for enhanced vehicle safety and automation is driving the growth of the Automotive IoT market. Technologies such as Advanced Driver Assistance Systems (ADAS), which rely on IoT sensors and data analytics, are becoming integral for improving road safety and reducing accidents. Features like automatic emergency braking, lane-keeping assistance, and adaptive cruise control leverage IoT data to enhance vehicle performance and safety. As regulations around vehicle safety tighten, manufacturers are increasingly investing in IoT solutions to comply with safety standards and improve overall vehicle safety.
- Growth of Electric and Autonomous Vehicles: The rise of electric and autonomous vehicles is a crucial factor contributing to the Automotive IoT market's expansion. Electric vehicles (EVs) require sophisticated connectivity solutions for charging management, battery health monitoring, and energy consumption analysis. Meanwhile, autonomous vehicles rely heavily on IoT technologies for real-time data collection, communication with infrastructure, and navigation systems. As both EVs and autonomous vehicles gain traction in the automotive industry, the demand for IoT solutions that support these technologies is expected to grow significantly.
- Integration of Artificial Intelligence and Machine Learning: A prominent trend in the Automotive IoT market is the integration of artificial intelligence (AI) and machine learning (ML) technologies. These advancements enable vehicles to process vast amounts of data collected from various IoT sensors, allowing for predictive maintenance, enhanced driver assistance, and personalized experiences. AI algorithms can identify patterns in driving behavior, optimize routes, and improve vehicle performance, making the driving experience safer and more efficient. This trend is pushing automotive manufacturers to invest in AI-driven IoT solutions to stay competitive in the market.
- Emphasis on Cybersecurity Measures: As vehicles become increasingly connected, the importance of cybersecurity measures is a growing trend in the Automotive IoT market. The rise in cyber threats targeting connected vehicles necessitates the development of robust security protocols to protect sensitive data and ensure the safety of vehicle systems. Manufacturers are focusing on implementing advanced encryption, secure communication channels, and regular software updates to safeguard vehicles against cyberattacks. This trend underscores the need for a comprehensive approach to cybersecurity in the automotive sector as IoT adoption continues to expand.
- Growth of Vehicle-to-Everything (V2X) Communication: The trend towards Vehicle-to-Everything (V2X) communication is shaping the Automotive IoT landscape. V2X technology enables vehicles to communicate with other vehicles, infrastructure, and even pedestrians, facilitating real-time data exchange that enhances safety and traffic management. This connectivity allows for better coordination in traffic flow, reducing congestion and improving overall road safety. As cities invest in smart infrastructure and connected ecosystems, the adoption of V2X technology is expected to accelerate, further driving the growth of the Automotive IoT market.
- Expansion of Smart Mobility Solutions: The increasing focus on smart mobility solutions presents significant opportunities for the Automotive IoT market. As urbanization continues to rise, cities are exploring innovative transportation solutions, including shared mobility and on-demand services. IoT technologies can enhance these solutions by providing real-time data on vehicle availability, traffic conditions, and user preferences. Companies that develop IoT-based applications for smart mobility can tap into this growing demand and contribute to more efficient and sustainable urban transportation systems.
- Collaboration with Technology Startups: Collaborations between traditional automotive manufacturers and technology startups represent a promising opportunity in the Automotive IoT market. Startups often bring innovative ideas and agile development processes that can enhance IoT capabilities in vehicles. By partnering with these companies, automotive players can accelerate their IoT initiatives, integrate cutting-edge technologies, and improve their product offerings. These collaborations can lead to the development of advanced connected vehicle solutions that meet evolving consumer demands and market trends.
- Focus on Sustainable Practices and Green Technologies: The increasing emphasis on sustainability and environmentally friendly practices provides opportunities for the Automotive IoT market. As manufacturers strive to reduce their carbon footprint and comply with environmental regulations, IoT technologies can help monitor vehicle emissions, optimize fuel consumption, and manage energy use in electric vehicles. Companies that develop IoT solutions aimed at enhancing sustainability in the automotive sector can position themselves favorably in a market that is becoming more environmentally conscious, driving growth and innovation.
Market Report Scope
Key Selling Points
- Comprehensive Coverage: The report comprehensively covers the analysis of products, services, types, and end users of the Automotive IoT Market, providing a holistic landscape.
- Expert Analysis: The report is compiled based on the in-depth understanding of industry experts and analysts.
- Up-to-date Information: The report assures business relevance due to its coverage of recent information and data trends.
- Customization Options: This report can be customized to cater to specific client requirements and suit the business strategies aptly.
The research report on the Automotive IoT Market can, therefore, help spearhead the trail of decoding and understanding the industry scenario and growth prospects. Although there can be a few valid concerns, the overall benefits of this report tend to outweigh the disadvantages.
REGIONAL FRAMEWORK
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- Request discounts available for Start-Ups & Universities
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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Frequently Asked Questions
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The major players in the market includes NXP Semiconductors, Harman International, Robert Bosch GmbH, Thales Group, TomTom International, IBM, Geotab, Intel Corp., Renesas, STMicroelectronics, Infineon Technlogies, Texas Instruments, Inc.
A prominent trend in the Automotive IoT market is the integration of artificial intelligence (AI) and machine learning (ML) technologies. These advancements enable vehicles to process vast amounts of data collected from various IoT sensors, allowing for predictive maintenance, enhanced driver assistance, and personalized experiences.
Increasing Demand for Connected Vehicles: The growing consumer preference for connected vehicles is a significant driver for the Automotive IoT market. Consumers are increasingly looking for vehicles that offer smart features, such as real-time navigation, remote diagnostics, and infotainment systems.
The global Automotive IoT market is expected to grow at a CAGR of 19.5% during the forecast period 2024 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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