Automotive IoT Market
Automotive IoT Market Analysis by Communication (Vehicle-to-Vehicle, In-Vehicle Communication, Vehicle to Infrastructure), Offering (Hardware, Software, Services), by Connectivity Form (Embedded, Tethered, Integrated), by Application (Navigation, Infotainment, Telematics), End-User (OEM, Aftermarket) and by Region – 2023 to 2033
Analysis of Automotive IoT Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Automotive IoT Market Outlook (2023 to 2033)
Newly-released Automotive IoT market analysis report by Fact.MR reveals that global sales of Automotive IoT in 2022 were held at US$ 82.7 Billion. With a 21.3% projected CAGR from 2023 to 2033, the market is expected to reach a valuation of US$ 712 Billion by the end of the forecast period. Vehicle-to-Vehicle communication is expected to be the highest revenue-generating segment, projected to grow at a CAGR of over 21.1% from 2023 to 2033.
Global Automotive IoT Size (2023)
US$ 103.3 Billion
Global Automotive IoT Size (2033)
US$ 712 Billion
Global Automotive IoT CAGR (2023-2033)
U.S Automotive IoT CAGR (2023 – 2033)
Key Companies Covered
Don't Need a Global Report?
save 40%! on Country & Region specific reports
Revenue of Automotive IoT from 2018 to 2022 Compared to Demand Outlook for 2023 to 2033
As per the Automotive IoT research by Fact.MR - a market research and competitive intelligence provider, historically, from 2018 to 2022, the value of the Automotive IoT increased at around 25% CAGR. With an absolute dollar opportunity of US$ 608.7 Billion, the market is projected to reach a US$ 712 Billion valuation by 2033.
What key Factors are Influencing the Automotive IoT Market's Expansion?
Increasing demand for connected cars has been affecting the market growth. The automotive sector is one of the biggest manufacturing industries with an annual production of more than 70 million units. With the help of IoT, the automotive industry is advancing from being just a product industry to being an industry of service. With IoT technologies, the automotive industry is making significant development in cars by providing advanced technologies such as ADAS, navigation, in-vehicle infotainment systems, and telematics solutions.
In 2020, around 30 million new connected vehicles were sold, which was about 41% of new car sales worldwide. In the United States, among the total passenger cars sold, 91% were connected cars. The increasing number of connected cars is the prominent factor contributing to the decreasing rate of fatalities in car accidents. It has dropped by 20% since the innovation of connected cars. Thus, the demand for connected cars is rapidly increasing which future will boost the growth of the automobile IoT.
IoT has brought significant transformation in the automotive sector. Services like navigation, hands-free calling, and GPS are provided in vehicles enabled with infotainment systems. Volvo developed a Sensus-connected infotainment system that provides services like 3D maps and also sends destination instructions. Many companies are investing with huge amount of money in the research and development of connected cars due to the increasing demand.
Fleet management has witnessed a significant modification with the implementation of IoT in the automotive sector. The use of telematics technology in vehicles allows for monitoring the performance of driver, location, and speed. For Instance, DHL launched the SmarTrucking solution which uses IoT sensors to gather real-time data like traffic, location, and speed of the vehicle. This data enables the company to schedule a more efficient fleet and optimize the routes. Thus, due to the introduction of IoT in fleet management, there are many new entrants in this field.
More Insights, Lesser Cost (-50% off)
Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR
Which Region is Projected to be the Prominent Market for Automotive IoT?
North America accounted for a market size of US$ 34.15 Billion in 2022. It is projected that North America will have a market of Automotive IoT worth US$ 294 Billion by 2033.
The first connected car in the world was developed by General Motors. In the beginning, this car was featured with voice, later they also added the feature of GPS location. Since then connected cars have seen a significant transformation because of the integration of IoT in the automotive sector.
"United States Automotive IoT Market Analysis"
The market in the United States is expected to grow to be worth US$ 229.4 Billion with an absolute dollar growth of US$ 192.3 Billion till 2033. The market in the United States has grown at a CAGR of 23.2% from 2018 to 2022 and is expected to grow at a CAGR of 20% from 2023 to 2033.
Companies providing automotive IoT technology are trying to gain higher market share and increase their existing portfolio of services and products for the automotive industry by launching IPOs of their services-providing entities. For instance, on 26th October 2022, Intel released the IPO of its self-driving tech company Mobileye. Mobileye's vision is to form Mobileye Drive Technology's featured fleet of self-driving cars. Mobileye revealed Robot, which is a fully automatic, six-passenger, and all-electric vehicle. Intel being a U.S.-based company, the release of this IPO will greatly affect the US automotive market.
"United Kingdom Automotive IoT Unit Market Analysis"
The market in the United Kingdom is expected to grow to be worth US$ 35.8 Billion by 2033, with an absolute dollar growth of US$ 30.2 Billion. The market in the country has grown at a CAGR of 23.6% from 2018 to 2022 and is expected to grow at a CAGR of 20.4% from 2023 to 2033.
Leading companies in the automotive sectors are collaborating with artificial intelligence provider companies to form advanced driving experiences for customers. For instance, Jaguar Land Rover and NVIDIA, a company that provides artificial intelligence (AI) and computing, have partnered to develop and offer innovative automated driving technologies as well as AI-enabled services and experiences for their consumers. This cooperation will lead to increased manufacturing of AI-enabled vehicles which will positively affect the U.K. market.
"China Automotive IoT Market Analysis"
The market in China is expected to grow to be worth US$ 61.7 Billion by 2033, with an absolute dollar growth of US$ 53.5 Billion. The market in China has grown at a CAGR of 26.7% from 2018 to 2022 and is expected to grow at a CAGR of 22.4% from 2023 to 2033.
WEY is one of China's largest producers of SUVs and pick-up trucks owned by Great Wall Motor. In August 2022, the latest version of a mid-size luxury SUV named Mocca DHT-PHEV LIDAR, with advanced driver assistance (ADAS) technology was first unveiled in China. There are many levels of ADAS ranging from the backup camera and blind-spot warning sensors to self-parking and adaptive cruise control. This advanced technology is gaining attention among people. China is among the leading country in automotive IoT. Innovation of such new high-tech vehicles will enable China to maintain its position in the market.
"Japan Automotive IoT Market Analysis"
The market in Japan is expected to grow to be worth US$ 52.1 Billion by 2033, with an absolute dollar growth of US$ 44.1 Billion. The market in Japan has grown at a CAGR of 24.1% from 2018 to 2022 and is expected to grow at a CAGR of 20.7% from 2023 to 2033.
In December 2022, Honda revealed new technologies to enhance driver assistance technology. With an intent of achieving its vision, of zero fatalities in collisions involving Honda cars and motorcycles by 2050 Honda has unveiled the additions of its Sensing 360 suits. Autonomous emergency braking with expanded detection capabilities, active lane change assistance, lane change collision mitigation, and front cross-traffic alerts are the newly added IoT features. IoT in automotive has significantly increased safety which is one of the significant factors contributing to the increase in demand for automotive IoT. Honda being a Japanese company, this kind of innovation will greatly impact the Japanese market.
"South Korea Automotive IoT Market Analysis"
The market in South Korea is expected to grow to be worth US$ 29.1 Billion by 2033, with an absolute dollar growth of US$ 25 Billion. The market in the country has grown at a CAGR of 25.8% from 2018 to 2022 and is expected to grow at a CAGR of 21.7% from 2023 to 2033.
In September 2022, Hyundai Motor Group partnered with TomTom, the trusted geolocation technology specialist to enhance all the vehicles across Europe with TomTom Maps and Real-time Traffic. The advanced driver assistance system enabled by TomTom's advanced maps will help the driver to envisage the road ahead. Many companies in South Korea are intensively working on ADAS technology which will provide a safer driving experience to the customer. This technological advancement in vehicles will boost the market in South Korea.
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
Which Communication Type of Automotive IoT is Projected to Witness Significant Growth?
Vehicle-to-Vehicle communication type of Automotive IoT is projected to witness the fastest growth as it has grown at a CAGR of 24% from 2018 to 2022 and is expected to grow at a CAGR of 21.1% from 2023 to 2033.
Using the Vehicle-to-Vehicle(V2V) communication technology the vehicles can exchange information about their speed, location, and heading. The vehicle can receive messages up to 10 times per second from all directions giving it a 360-degree awareness of the other vehicles in the surrounding.
In September 2022, The National Highway Traffic Safety Administration (NHTSA) of the United States released its estimates of traffic fatalities for the first half of 2022. An estimated 20,175 people died in motor vehicle traffic crashes, which is an increase of 0.5% compared to the first half of 2021 which had 20,070 fatalities. Vehicle-to-Vehicle communication technology enhances safety systems by detecting potential dangers and giving visual, tactile, and audible alerts. The connected car technology will help significantly reduce the yearly fatalities caused by motor vehicle crashes. Thus, the demand for vehicles enabled by vehicle-to-vehicle communication technology will see a steady increase in the coming years.
Which Offering Type of Automotive IoT is expected to be Significantly Lucrative?
Automotive IoT offered by Software is projected to witness the fastest growth as it has grown at a CAGR of 24.5% from 2018 to 2022 and is expected to grow at a CAGR of 21.2% from 2023 to 2033.
Predictive analytics enables vehicles to identify patterns in data using Machine learning algorithms and IoT technologies. Transportation and driving functions steering, braking, and fuel consumption can be performed effectively using predictive analysis.
For instance, in February 2022, Ashok Leyland partnered with Syncron, a Sweden-based after-sales service provider. They aim to integrate predictive vehicle maintenance solutions into Ashok Leyland Condition Monitoring Systems (CMS).
Key players in the Automotive IoT market are Texas Instruments, Intel, NXP Semiconductors, TomTom, Robert Bosch, Google, Apple, General Motors, Audi, Ford Motor, IBM, Cisco, Microsoft, Thales SA, AT&T, and Vodafone.
Some of the recent developments in the market are:
- In December 2022, TomTom, the geolocation technology specialist partnered with Amazon Web Services (AWS), Meta, and Microsoft to form the Overture Maps Foundation. This collaboration is formed to develop interoperable open map data under the governance of the Linux Foundation.
- In November 2022, Audi, the German luxury car manufacturer launched the Audi Q5 special edition. The Audi Q5 special edition is enhanced with Audi's latest MMI navigation plus MMI touch, and voice controls. This car supports Apple CarPlay and Android Auto.
Segmentation of the Global Automotive IoT Market
By Offering :
By Connectivity Form :
By Application :
By End-User :
By Region :
- North America
- Latin America
- Asia Pacific
- Middle East and Africa
- FAQs -
The global market is worth US$ 103.3 Billion in 2023.
The global market size of the Automotive IoT is projected to witness a market size of US$ 712 Billion in 2033.
The CAGR growth of the market from 2018 to 2022 is 25%
CAGR growth of the market from 2023 to 2033 is projected to be 21.3%.
Vehicle-to-Vehicle communication in Automotive IoT is projected to witness significant demand in the market.
Automotive IoT offered by Software is projected to witness a significant demand by 2033 and is expected to grow at a CAGR of 21.2%.
The United States is projected to witness a market size of US$ 229.4 Billion and is expected to grow at a 20.0% CAGR from 2023 to 2033.
Texas Instruments, Intel, NXP Semiconductors, TomTom, Robert Bosch, Google, Apple, General Motors, Audi, Ford Motor, IBM, Cisco, Microsoft, Thales SA, AT&T, and Vodafone