Automotive IoT Market Size, Share, Growth Analysis, By Offering(Hardware ), By Connectivity, By Communication, By Application(Navigation, Telematics ), By Region - Industry Forecast 2024-2031

Automotive IoT Market size was valued at USD 102.3 billion in 2022 and is poised to grow from USD 125.32 billion in 2023 to USD 635.48 billion by 2031, growing at a CAGR of 22.5% in the forecast period (2024-2031).

The automotive IoT market is poised for significant growth due to the increasing electrification of the automotive industry and the rising adoption of connected vehicle technologies. The demand for intelligent transportation systems and the expansion of connected vehicle fleets are expected to drive market development. Factors such as the high demand for autonomous vehicles and the growing popularity of electric vehicles (EVs) further contribute to market growth. Investment in automotive IoT systems is increasing, as these systems provide real-time data and feedback to drivers, enhancing both internal and external vehicle operations. Additionally, the rise in smartphone usage and connected medical devices, alongside government initiatives for smart city projects, offer promising growth opportunities. Automotive IoT systems are particularly beneficial for traffic management, reducing maintenance costs, and improving safety features, thereby preventing costly breakdowns and maintaining fuel efficiency. However, the market faces challenges such as lack of standardization, cybersecurity concerns, and the negative impact of the COVID-19 pandemic, which led to a 24% reduction in vehicle usage in 2022. Addressing data privacy and enhancing data security technology are critical for future market development.

Top-down and bottom-up approaches were used to estimate and validate the size of the Automotive IoT Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Automotive IoT Market Segmental Analysis

The automotive IoT market is segmented based on offering, connectivity communication, application, and region. In terms of offering, the market is segmented into human cornea and artificial cornea. Based on offering, the market is bifurcated into hardware (semiconductor components {microcontrollers, field programmable gate arrays [FPGAs], digital signal processor, memory chips}, connectivity technology ICS (cellular, Wi-Fi, bluetooth, others), software (platforms {device management platform, application management platform, network management platform}, solutions {real time streaming analysis, security solutions, data management, remote monitoring systems, network bandwidth management}), and services (deployment and integration services, support and maintenance services). Based on connectivity, the market is bifurcated into embedded, tethered, and integrated. In terms of communication, the market is segmented into in-vehicle communication, vehicle to vehicle communication, and vehicle to infrastructure communication. Based on application, the market is segmented into navigation (TomTom navigation SDK powered by PTV groups, real time data capture, road and vehicle monitoring), telematics (fleet and asset management, intelligent traffic system, collision avoidance, parking management system, passenger information system, emergency vehicle notification, predictive maintenance, remote monitoring and diagnostics), infotainment (entertainment, communication). Based on region, the market is segmented into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa.

Drivers of the Automotive IoT Market

Automotive manufacturers are increasingly incorporating new connected vehicle technologies into their vehicles, a trend expected to significantly boost the automotive IoT market in the coming years. These advanced features enhance connectivity, driving market expansion. Additionally, manufacturers are adopting innovative enhancements that attract a large consumer base, further propelling market growth.

Restraints in the Automotive IoT Market

Automotive IoT solutions face significant challenges due to the increasingly complex cybersecurity landscape, with concerns about data security potentially hindering market growth. The high risks associated with data exchange in IoT systems can lead to cyberbullying and other malicious activities. Therefore, improving data security is crucial. These data security concerns are currently a major barrier to market expansion.

Market Trends of the Automotive IoT Market

Automotive IoT vendors can capitalize on the increasing global sales of electric and autonomous vehicles by providing specialized IoT solutions for these markets. By collaborating with manufacturers, companies can develop advanced IoT technologies that enhance the performance and features of these vehicles. These innovations will address specific requirements and contribute to the growth of the automotive IoT market, enabling vendors to establish a strong presence in the industry.