PUBLISHER: The Business Research Company | PRODUCT CODE: 1465670
PUBLISHER: The Business Research Company | PRODUCT CODE: 1465670
Automotive digital services encompass the incorporation of digital technologies into vehicles to enhance safety, comfort, operational efficiency, and entertainment features. These services utilize digital technologies, connectivity, and data analytics to provide convenience, safety, entertainment, and efficiency both inside and outside vehicles. They offer a range of multimedia entertainment, navigation, and communication features within the vehicle.
The primary categories of products within automotive digital services include mobility on demand services, logistic fleet management services, and in-vehicle digital services. Mobility on demand (MOD) services entail transportation solutions that offer flexible, on-demand access to mobility options beyond traditional modes of transportation such as private vehicles or public transit. This includes various vehicle types, such as commercial vehicles and passenger vehicles, and utilizes different applications provided by vehicle owners, automobile manufacturers, automobile service providers, transportation management companies, and other stakeholders.
The automotive digital services market research report is one of a series of new reports from The Business Research Company that provides automotive digital services market statistics, including automotive digital services industry global market size, regional shares, competitors with an automotive digital services market share, detailed automotive digital services market segments, market trends and opportunities, and any further data you may need to thrive in the automotive digital services industry. This automotive digital services market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenario of the industry.
The automotive digital services market size has grown rapidly in recent years. It will grow from $3.14 billion in 2023 to $3.53 billion in 2024 at a compound annual growth rate (CAGR) of 12.5%. The growth observed in the historic period can be credited to several factors, including the widespread adoption of internet connectivity and connectivity standards, the emergence of smartphones and mobile applications, and regulatory initiatives aimed at improving safety and reducing emissions standards.
The automotive digital services market size is expected to see rapid growth in the next few years. It will grow to $5.34 billion in 2028 at a compound annual growth rate (CAGR) of 10.9%. The projected growth in the forecast period can be attributed to several factors, including the development of the connected car ecosystem, integration of electric vehicles, incorporation of edge computing and artificial intelligence (AI), and the emergence of personalized mobility services. Significant trends expected in this period include the advancement of vehicle connectivity, the proliferation of personalized user experiences, the expansion of in-car entertainment and infotainment options, and the integration of augmented reality (AR) and heads-up displays (HUDs).
The increasing demand for connected vehicles is poised to propel the expansion of the automotive digital services market in the foreseeable future. Connected vehicles, equipped with advanced communication technologies and connectivity features, enable interaction with other vehicles, reflecting consumer expectations for enhanced safety, convenience, entertainment, and connectivity features. Automotive digital services play a pivotal role in enhancing convenience, safety, and entertainment for drivers and passengers while presenting manufacturers with opportunities for ongoing engagement. For instance, as per the Australian Computer Society, there are approximately a million connected cars in Australia, a figure projected to soar to 10 million by 2030. Consequently, the escalating demand for connected vehicles acts as a driving force behind the automotive digital services market's growth trajectory.
Key players within the automotive digital services market are focused on developing advanced solutions to meet evolving consumer needs, exemplified by Kia Digi-connect, an automotive digital service designed to elevate customer convenience, facilitate contactless sales, enhance customer engagement, gain competitive advantage, and reduce costs. This encompasses a diverse range of services and applications delivered through the internet or electronic networks, aimed at enhancing the customer experience and streamlining automotive operations. For instance, in June 2021, Kia, a South Korea-based automobile manufacturer, introduced the integrated solution application Kia Digi-connect to enhance the digital purchasing experience for customers. This application aims to provide customers with a seamless and convenient platform for online vehicle purchases, offering features such as virtual showroom services and digital consultation options, enabling customers to explore and purchase vehicles from the comfort of their homes.
In June 2022, TrueCar Inc., a US-based automotive digital marketplace facilitating connections between auto buyers and sellers through its nationwide network of certified dealers, successfully acquired Digital Motors for an undisclosed sum. This strategic move is intended to reinforce TrueCar's standing in the online car-buying market. The acquisition is aimed at enhancing the overall car-buying experience, making it more comprehensive, efficient, and user-friendly for both consumers and industry partners. Digital Motors, a US-based company, specializes in developing online automotive sales platforms and offering additional digital services.
Major companies operating in the automotive digital services market are Volkswagen AG, Toyota Motor Corporation, Ford Motor Company, Mercedes-Benz Group, General Motors Company, Bayerische Motoren Werke AG, Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Aurora Innovation Inc., Volvo AB, Qualcomm Incorporated, Continental AG, Tata Motors Limited, Uber Technologies Inc., NVIDIA Corporation, Aptiv PLC, Harman International Industries Incorporated, Lyft Inc., XPeng Inc., Rivian Automotive Inc., Waymo LLC, Cruise LLC, BlackBerry Limited, TomTom NV
Asia-Pacific was the largest region in the automotive digital services market in 2023. The regions covered in the automotive digital services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the automotive digital services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The automotive digital services market consists of revenues earned by entities by providing services such as connected car solutions, telematics services, digital cockpit solutions, data analytics and insights, and cybersecurity solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The automotive digital services market also includes sales of connected car devices, telematics unit tools, digital cockpit displays, fleet management software tools, and V2X communication devices. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Automotive Digital Services Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on automotive digital services market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for automotive digital services ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The automotive digital services market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.