Automotive Iot Market

According to Stratistics MRC, the Global Automotive IoT Market is accounted for $186.6 billion in 2024 and is expected to reach $405.3 billion by 2030 growing at a CAGR of 13.8% during the forecast period. Automotive IoT is the integration of IoT technologies into vehicles, enabling a network of connected devices, sensors, and applications. It enables vehicles to collect, process, and share real-time data, enhancing communication between vehicles (V2V), infrastructure (V2I), and the cloud. Automotive IoT supports advanced functionalities like autonomous driving, predictive maintenance, and connected car services, improving safety, efficiency, and user experience. This technology contributes to smart traffic management, enhanced infotainment systems, and the transition toward sustainable and intelligent transportation solutions.

Market Dynamics: 

Driver: 

Growing consumer preference for connected vehicles

As consumers increasingly seek seamless connectivity in vehicles, automakers are integrating IoT-enabled systems to fulfill these expectations. This trend drives significant investments in IoT hardware and software development, prompting manufacturers to collaborate with technology providers for innovative solutions. Additionally, there is a growing demand for integrated platforms that connect vehicle systems with external networks, such as smartphones, smart homes and city infrastructure which overall drive experience and operational efficiency in connected vehicles.

Restraint:

High costs of IoT implementation

IoT-enabled systems require significant investments in hardware and software, leading to increased financial burdens for automakers. This can limit market penetration for smaller manufacturers or those with tight margins. Additionally, higher vehicle prices for consumers can discourage cost-conscious buyers, potentially slowing overall market growth. This affordability gap can also hinder the adoption of IoT-enabled vehicles, particularly in price-sensitive markets or regions with lower disposable income.

Opportunity:

Enhanced safety, security and improved driving experience

IoT technologies are transforming the way vehicles communicate, enhancing safety through advanced features like lane departure warnings and collision avoidance systems. This has led to increased demand for connected vehicles, driven by regulatory mandates. IoT also facilitates Vehicle-to-Everything (V2X) communication, enhancing road safety by providing real-time alerts about traffic conditions and hazards. This aligns with consumer expectations for safer, more efficient driving.

Threat:

Limited infrastructure in emerging markets

IoT systems in vehicles rely on high-speed internet, but emerging markets often lack this, leading to unreliable IoT performance. This limits the functionality of connected features like real-time navigation and V2X communication. Additionally, emerging markets lack necessary infrastructure like smart traffic lights and charging stations for electric vehicles, hindering the full potential of automotive IoT, including safety enhancements and traffic optimization.

Covid-19 Impact

The COVID-19 pandemic significantly impacted the Automotive IoT market, disrupting global supply chains and delaying the production of connected vehicles. Automotive manufacturers faced reduced consumer demand and resource constraints, slowing IoT adoption. However, the pandemic also highlighted the importance of IoT for remote monitoring, predictive maintenance, and enhanced safety, spurring innovation. The shift toward contactless services, increased use of telematics, and growth in autonomous vehicle development created opportunities.

The software segment is expected to be the largest during the forecast period

The software is expected to be the largest during the forecast period owing to software which is crucial for IoT integration in vehicles, enabling real-time data analytics, predictive maintenance, and advanced driver assistance systems. This enhances vehicle performance, safety, and user experience. The software segment is expected to dominate the Automotive IoT market due to its role in managing interoperability and handling data securely boosting the market growth.

The autonomous driving segment is expected to have the highest CAGR during the forecast period

The autonomous driving segment is expected to register lucrative growth during the estimation period because autonomous vehicles rely on IoT-enabled sensors, cameras, radar, and LiDAR systems for environmental detection. Real-time data processing and robust V2X communication are crucial for safe operation. Comprehensive IoT networks and protocols enable reliable data exchange, coordination, and reduced accident risk, making IoT an integral part of autonomous driving. 

Region with largest share:

Over the forecasted timeframe, the North America region is anticipated to dominate the market share owing to North America's robust infrastructure supports IoT technologies like high-speed internet, 5G networks, and cloud computing, facilitating seamless connectivity and vehicle integration. The region leads in R&D for autonomous driving, AI, and V2X communication, fueling advancements in automotive IoT. The push for electric vehicles and autonomous cars drives growth in automotive IoT solutions.

Region with highest CAGR:

The Asia Pacific region is expected to register the highest growth rate over the forecast period due to regions focus on developing smart cities, accelerating the deployment of IoT infrastructure for connected vehicles. Cities like Tokyo, Shanghai, and Seoul are implementing traffic management systems and V2X networks. The region is also adopting 5G technology for improved traffic flow, autonomous driving, and enhanced vehicle safety.

Key players in the market

Some of the key players in Automotive IoT market include Alphabet Inc, Cisco System, Inc, General Electric Company, HARMAN International Industries Inc., Huawei Technologies Co., Ltd., IBM Corporation, Intel Corporation, Microsoft Corporation, NXP Semiconductors, QUALCOMM Incorporated, Robert Bosch GmbH, Schneider Electric, Texas Instruments, Thales S.A., TomTom International BV and Verizon Communications Inc.  

Key Developments:

In November 2024, Cisco, announced an expanded partnership to transform how global enterprises access wireless connectivity.  As demand for flexible and cost-effective connectivity surges, Cisco and NTT DATA are responding with a unified solution backed by world-class support services from both companies.

In November 2024, Cisco announced the findings from the second annual AI Readiness Index. The report explores how prepared organizations are to invest in, deploy and use AI. Nearly eight thousand organizations took part in the report.

In November 2024, IBM and AWS unveil new milestones in our collaboration to help businesses adopt responsible AI. Together, we are combining our strengths to ensure that organizations can harness the power of generative AI with an emphasis on transparency, security and trust.

Components Covered:
• Hardware 
• Software 
• Services 
• Other Components 

Communications Covered:
• Vehicle-to-Vehicle (V2V) 
• Vehicle-to-Infrastructure (V2I) 
• In-Vehicle Communication 
• Other Communications 

Connectivities Covered:
• Tethered 
• Embedded/Integrated 
• Cloud-based 
• Other Connectivities 

Vehicles Covered:
• Passenger Cars 
• Commercial Vehicles 
• Electric Vehicles (EVs) 
• Other Vehicles 

Applications Covered:
• Autonomous Driving 
• Body Control & Comfort Systems 
• Infotainment Systems 
• Communication Systems 
• Connected Services 
• Other Applications 

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances