Automotive IoT Market By Component (Hardware, Software, Services), By Connectivity Technology (Cellular, Wi-Fi, Bluetooth, Zigbee), By Application (Telematics, Infotainment, Fleet Management, Vehicle Tracking, Autonomous Driving, Predictive Maintenance), By Vehicle Type (Passenger Cars, Commercial Vehicles, Electric Vehicles, Hybrid Vehicles), By End-User (OEMs, Aftermarket), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Automotive Internet of Things Market was valued at USD 131.0 billion in 2023 and will surpass USD 351.2 billion by 2030; growing at a CAGR of 15.1% during 2024 - 2030.

The Automotive Internet of Things (IoT) market is evolving rapidly, driven by the need for connected, efficient, and autonomous vehicles. As vehicles become more integrated with technology, IoT plays a pivotal role in enhancing vehicle safety, driver experiences, and operational efficiencies. The automotive IoT ecosystem comprises various segments, including components, connectivity technologies, applications, vehicle types, and end-users, all of which contribute to the advancement of smart automotive solutions. The demand for advanced features such as real-time data sharing, predictive maintenance, and autonomous driving systems is propelling growth across these segments, leading to innovation in IoT-enabled technologies for the automotive industry.

Component Segment Is Largest Owing to Demand for Hardware

In the automotive IoT market, the component segment includes hardware, software, and services. The hardware subsegment holds the largest share of the market, primarily due to the rising demand for physical components that are critical for connecting vehicles to the Internet and enabling smart functionalities. These components include sensors, processors, cameras, and connectivity modules that facilitate a wide range of IoT applications in vehicles.

Hardware is essential for the development of advanced safety features, autonomous driving technologies, and in-car infotainment systems. The growth of autonomous vehicles, which rely heavily on sensors and other IoT devices, is a significant driver of this subsegment. Additionally, hardware plays a crucial role in improving vehicle diagnostics, monitoring, and management through telematics systems, further enhancing the overall automotive IoT market.

Connectivity Technology Segment Is Fastest Growing Due to Cellular Advancements

The connectivity technology segment includes cellular, Wi-Fi, Bluetooth, Zigbee, and other technologies that enable communication between vehicles and external infrastructure. Among these, cellular technology is the fastest-growing subsegment in automotive IoT, largely due to advancements in 5G technology. Cellular networks, especially 5G, offer ultra-low latency and high-speed data transfer, which are essential for real-time communication between vehicles and infrastructure, paving the way for autonomous driving and connected vehicle ecosystems.

As more vehicles adopt V2X (vehicle-to-everything) communication, cellular technology's ability to handle vast amounts of data and provide reliable connections will become increasingly critical. The push for smart cities and the integration of autonomous vehicles is accelerating the deployment of 5G networks, making cellular technology the leading force in the automotive IoT connectivity space. The ability to support vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-cloud (V2C) communications will drive cellular technology's dominance in the market.

Telematics Application Is Largest in Automotive IoT

Telematics, which involves the transmission of data from vehicles to external systems, is the largest application in the automotive IoT market. This application encompasses various functions, such as fleet management, vehicle tracking, remote diagnostics, and driver behavior monitoring. Telematics plays a crucial role in providing real-time data to improve vehicle performance, safety, and operational efficiency.

Telematics is widely adopted in both passenger and commercial vehicles, where fleet managers and vehicle owners use the technology to track vehicle performance and optimize routes. The rise in connected cars and the need for predictive maintenance have increased the demand for telematics systems. Furthermore, regulatory requirements for data recording and vehicle monitoring in several regions are also contributing to the growth of this application, making it the largest segment in automotive IoT.

Passenger Cars Segment Leads Automotive IoT Market

In the automotive IoT market, passenger cars represent the largest vehicle type segment. This is primarily due to the growing consumer demand for connected and smart vehicles equipped with advanced features such as in-car infotainment, autonomous driving capabilities, and real-time connectivity. The integration of IoT technologies in passenger cars enhances user experiences by providing safety features, remote diagnostics, and entertainment systems.

OEMs are increasingly incorporating IoT devices in passenger vehicles to meet consumer expectations for seamless connectivity and safety. As a result, passenger cars are the dominant segment, with a significant share in both global sales and IoT adoption. The ongoing development of autonomous driving technologies and advanced driver assistance systems (ADAS) also contributes to the growth of passenger cars as a leading vehicle type in the automotive IoT market.

OEMs Are the Largest End-User in Automotive IoT

The OEMs (Original Equipment Manufacturers) segment is the largest end-user in the automotive IoT market. OEMs integrate IoT technologies directly into vehicles during the manufacturing process, offering consumers a range of connected features such as infotainment systems, advanced driver assistance, and predictive maintenance tools. OEMs play a critical role in shaping the automotive IoT market by embedding innovative IoT solutions in vehicles that enhance safety, convenience, and efficiency.

OEMs are also collaborating with technology companies to develop IoT-enabled solutions that allow vehicles to communicate with smart cities, autonomous infrastructure, and other connected devices. These collaborations are pivotal for driving the development of next-generation vehicles. As the demand for connected and autonomous vehicles grows, OEMs remain the dominant end-user group in automotive IoT, continuing to lead innovations in vehicle connectivity and smart technologies.

Asia-Pacific Region Is Fastest Growing in Automotive IoT

The Asia-Pacific (APAC) region is the fastest-growing market for automotive IoT. With countries like China, Japan, South Korea, and India leading the way, the region is witnessing rapid advancements in vehicle connectivity, autonomous driving, and IoT integration. The adoption of connected vehicles is growing quickly, driven by strong automotive manufacturing bases and government initiatives aimed at promoting smart transportation.

The APAC region’s rapid adoption of electric vehicles (EVs) and autonomous driving technology is further fueling the demand for automotive IoT solutions. Moreover, government policies promoting IoT infrastructure and smart city initiatives are accelerating the growth of the automotive IoT market in the region. The increasing number of vehicle manufacturers and technology companies investing in IoT-enabled vehicles makes APAC a key market for the future growth of the automotive IoT industry.

Leading Companies and Competitive Landscape

The automotive IoT market is highly competitive, with key players constantly innovating and enhancing their offerings. Bosch, Qualcomm, Intel, Cisco, and Continental AG are among the leading companies in this space, offering a wide range of solutions that span hardware, connectivity technologies, and automotive applications. These companies are focused on developing advanced IoT systems, including sensors, chips, and software platforms, to enable seamless connectivity, autonomous driving, and enhanced safety in vehicles.

The competitive landscape is characterized by strategic collaborations and partnerships between automotive manufacturers and technology providers. Companies are increasingly focused on developing integrated solutions that combine vehicle-to-everything (V2X) communication, cloud services, and edge computing to enable real-time data processing and connectivity. As the automotive IoT market continues to expand, leading companies are working to establish a strong presence in the growing connected vehicle ecosystem.

Recent Developments:

• Bosch launched an advanced automotive IoT platform designed to improve fleet management and predictive maintenance in collaboration with major car manufacturers.
• Qualcomm acquired an automotive IoT company to expand its 5G capabilities for in-vehicle connectivity, aiming to accelerate the transition to autonomous driving.
• Ford Motor Company unveiled a new connected vehicle system that leverages IoT technology to provide real-time diagnostics and improved user experience.
• Continental AG announced a partnership with a leading tech firm to develop an IoT-enabled system for vehicle-to-everything (V2X) communication, advancing smart city infrastructure.
• NXP Semiconductors introduced a new automotive IoT chip that enhances vehicle security and communication, playing a crucial role in the next generation of autonomous vehicles.

List of Leading Companies:

• Autotalks Ltd.
• Bosch
• Cisco Systems
• Continental AG
• Daimler AG
• Ericsson
• Ford Motor Company
• Harman International
• IBM Corporation
• Intel Corporation
• NXP Semiconductors
• Qualcomm
• Telenor Group
• Toyota Motor Corporation
• Vodafone Group

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