Internet of Cars Market

Global Internet of Cars Market Size (2024 to 2029)

The global Internet of Cars market is predicted to reach USD 187.99 billion in 2024 and USD 461.96 billion by 2029, growing at a CAGR of 19.7% during the forecast period.

The Internet of Cars, also known as Automotive IoT, refers to the process of putting gadgets, sensors, cloud computing, apps, and other similar things into cars so that they can work as a complex system for connecting cars, doing predictive maintenance, managing fleets, connecting OEMs and insurance companies and more. When the Internet of Things is used in the automotive industry, manufacturers can use much-wanted innovations to make cars almost as bright as computers. 

Global Internet of Cars Market Drivers:

Technological developments are anticipated to drive the growth of the global market. Since cars are getting increasingly connected, it won't be long before they can drive themselves. The Internet of cars is a big part of making that happen. The Internet of cars makes it possible for vehicles to share information with networks quickly and safely by using VANETs that come from MANET. Conventional VANET, a network of different things, has changed into the Internet of cars. Sensors, GPS, brakes, and infotainment systems are some electronics used. But there is a need for better ways for vehicles to join and talk to each other. The Internet of cars market should grow because of this need. 

Market growth will be driven by safety and cost-cutting- Intel released a report about the Internet of Things and Automotive & Transportation Policy Principles in 2019 that showed more than 90% of accidents in the United States are caused by mistakes made by people. Connected, self-driving cars that work in an Internet of Things system and can sometimes get around without human help can significantly reduce crashes.  For example, if only 10% of cars in the United States were self-driving, 1,100 traffic deaths could be saved yearly. In the same way, if 90% of cars were self-driving, USD 447 billion could be saved and 21, 700 lives could be saved. So these causes will cause the market to grow over the next few years. 

Implementing traffic control will help the growth of the Internet of Cars market- Traffic management is a significant source of income for the Internet of Cars. Bright traffic lights that can improve traffic flow by analysing the current state of the road and lighting systems that can change depending on the weather are just two examples. Also, sensors and lights can help drivers find empty parking spots, and CCTV cameras that give real-time information can let rescue services know when a driver is in an accident. So, the growing use of the Internet of cars in traffic and parking control will help the market grow. 

As embedded Internet of Things solutions for cars improve, more complex innovations will come into play. Since the speed of mobile communications and the technology in connected cars are always getting faster and better, car companies can keep developing new and exciting services. The Internet of cars allows the social Internet of cars to be made. The sensors in cars, intelligent terminals, and platforms are spread out across the infrastructure of a modern city and can collect information while safely talking to each other. Based on this information, cars are directed in real time. Also, the Internet of cars lets car makers find problems with their products and make them more reliable. This maintenance makes it less likely that something will break down or cause an emergency. The Internet of cars lets car companies sell better software with new features. Because of these benefits, the global market for the Internet of cars will likely grow. 

One of the most significant growth areas for the internet of cars market is predictive maintenance. It helps lower working and capital costs by making it easier to service and fix assets before breaking down and better-using maintenance staff and replacement parts. In addition, companies can use predictive maintenance to accurately identify problems and stop them from happening in real-time, which is very important for applications in critical infrastructure.  With technological advancements like the Over-the-Air update built into cars, car owners don’t have to take their cars to a service station for regular maintenance. Instead, they only need to visit the service shops for essential or urgent maintenance work. Predictive maintenance works very well at giving car owners these comforts. 

Global Internet of Cars Market Restraints:

The growth of the Internet of Cars market will slow down because of security and privacy concerns. The Internet of Cars creates a network of connected devices. It also combines various services, technologies, and communication protocols, which causes information security problems. It leaves the system open to attacks like distributed denial of services (DDoS) strikes meant to mess with it. They can be aimed at different things, like the car or network that moves the data. Parts of a car, like the steering wheel, brakes, GPS, accelerator, and alarms, can be accessed virtually on the Internet of cars, and if a hack or breach is successful, it could kill someone. Hence, these issues will threaten the Internet of the car market. 

There isn’t enough infrastructure for linked cars to work well- For linked cars to work well, they need to be connected quickly, have telematics devices, and have fleets with sensors. Telematic devices, sensors, and software gather data for real-time tracking and geo-fencing applications. On highways, the linked cars must-have information like a lane change, object recognition, the distance between vehicles, traffic state, and services like navigation and connectivity. On highways, however, there isn’t enough network access for cars and the cloud to talk to each other. The growth of IT infrastructure on highways is slower in developing countries like Mexico, Brazil, and India. This is because 3G and 4G LTE networks, which are needed for access, are only available in cities and semi-urban areas. Even though there are a few third-party logistics companies in semi-urban and rural places, it is hard to get to them. So, the lack of IT and communication infrastructure in developing areas can slow the growth of the Internet of Cars market in these countries. 

Impact of COVID-19 on the global Internet of Cars Market:

Unlike many other industries, the COVID-19 pandemic positively and negatively impacted the Internet of cars market growth. Amid the pandemic, the Internet of cars market has experienced a negative demand shock across all regions. This was a direct result of the unprecedented and staggering scale of the global impact of the COVID-19 pandemic outbreak. However, despite the negative effects of the pandemic, particularly regarding funding for research and development of autonomous driving, testing efforts have continued, and favorable projections have been made. In addition, throughout the epidemic, there has been an increase in the demand for Wi-Fi, which has led to considerable regulatory reforms being imposed, particularly in the United States and China. 

REPORT COVERAGE:

This research report on the global Internet of cars market has been segmented and sub-segmented based on the component, hardware, networking technology, communication type, and region.

Global Internet of Cars Market - By Component:

• Hardware
• Software
• Services

The market has been separated into hardware, software, and service categories based on the component type. In 2020, the service sector is leading with the most significant market shares. This is because the service model ensures regular earnings and, more importantly, maintains a lasting relationship with the clients. For example, Volkswagen’s Car-Net service provides customers with navigation tools, security features, and maintenance assistance, among other features, for a fee of USD 200 per year or USD 18 per month. This service is available to customers in the United States. So, we can conclude that these elements are responsible for the preeminence of this segment. 

During the forecast, it is anticipated that the software segment will demonstrate a higher CAGR. The extension of this market segment is being fueled by various factors, including a rising number of automakers establishing their proprietary software platforms to own their customers’ data entirely. 

Global Internet of Cars Market - By Hardware:

• Connectivity ICs
• Semiconductor Components 

During the forecast period, the hardware segment shares will grow more for connectivity ICs than semiconductor components. 

Connectivity lets cars connect and the road itself, making the roads safer, greener, and more efficient. Car companies are adding wireless communication to both expensive and cheap cars. They need reliable wireless connectivity technology that lowers the total cost of a vehicle, from making it to fixing it after it is sold. The automotive industry has a growing demand for wireless technologies like Wi-Fi, Bluetooth, and cellular networks (LTE, 3G, and HSPA+). This is expected to lead to a rise in the demand for connectivity ICs. 

Global Internet of Cars Market - By Networking Technology:

• Wi-Fi
• Bluetooth 
• Cellular 
• Others 

Wi-Fi, Bluetooth, cellular, and other networking technologies are some categories used to categorize products in this sector regarding networking technology. In 2020, the Wi-Fi sector maintained most of the overall market. Wi-Fi has a failure rate of fewer than one percent, making it a reliable technology for exchanging data at low and high communication frequencies. In the car, Wi-Fi, on the other hand, eliminates the need for reliance on cellular services because it offers connectivity on the go through mobile hotspots. The enlargement of this market segment can be directly linked to these several causes. 

Over the time under consideration, the cellular market is predicted to grow exponentially. This is because there has been an increase in the development of the 5 G-based Internet of cars, which provides reliability, extremely high bandwidth, data transfer rate, and very low latency compared to the existing communication networks. 

Global Internet of Cars Market - By Communication Type:

• Vehicle-to-Vehicle Communication 
• Vehicle-to-Infrastructure Communication 
• In-Vehicle Communication 

Based on the type of communication, this market is divided into vehicle-to-vehicle, vehicle-to-infrastructure, and other groups. In 2020, Vehicle-to-vehicle (V2V) was the most critical part of the market. Vehicle-to-vehicle allows for reliable data sharing, such as situational awareness messages and map data, with a low delay. Also, Vehicle to vehicle is a complementary technology that is supposed to help and improve how self-driving cars work. So, these things will make this segment the most important during the forecast time. 

The vehicle infrastructure segment is projected to grow faster during the forecast. This segment is growing because it is increasingly used in traffic management systems. It can be used on roads with a lot of traffic to improve traffic flow and save fuel. 

Global Internet of Cars Market - By Region: 

• North America
  • The United States
  • Canada
  • Rest of North America
• Europe
  • The United Kingdom
  • Spain
  • Germany
  • Italy
  • France
  • Rest of Europe
• The Asia Pacific
  • India
  • Japan
  • China
  • Australia
  • Singapore
  • Malaysia
  • South Korea
  • New Zealand
  • Southeast Asia
• Latin America
  • Brazil
  • Argentina
  • Mexico
  • Rest of LATAM
• The Middle East and Africa
  • Saudi Arabia
  • UAE
  • Lebanon
  • Jordan
  • Cyprus

In 2020, North America's Internet of Cars market was worth USD 31.66 billion, the highest in any region globally. Most of this market was in the US. The National Highway Traffic Safety Administration (NHTSA) says that the average American worker spends 38 hours a year stuck in traffic. It means that people must travel an extra 5.5 billion hours and buy an extra 2.9 billion gallons of petrol. Every year, this lost time and petrol costs the US economy about USD 121 billion. With better traffic control and self-driving cars, the Internet of Cars network can make things run smoothly and get more done. The market in this area will grow because of these things. 

During the forecast period, the market in Asia Pacific is projected to grow very fast. In Japan, supportive regulatory measures are being implemented to help test the low architecture and improve engineering capacity. China is also the world winner in 5G networking, both in terms of how quickly it is being used and how it is being used. This is because it started using it early on. Also, the country is quickly moving towards new rules and policies at the federal level for Internet of Cars technology. So these things explain why the market in this region is increasing. 

Europe’s market is also likely to grow a lot, with a lot of money spent on the Internet of cars because of security, entertainment, and fleet management. Also, investments will be made focusing on Vehicle-to-infrastructure and Vehicle-to-vehicle options to reduce road risks and make drivers more aware of the surroundings. 

KEY MARKET PARTICIPANTS:

The major companies operating in the global Internet of cars market include  NXP Semiconductors (Netherlands), Harman (US), Robert Bosch (Germany), Thales (France), TomTom International (Netherlands), IBM (US), GeotabInc (Canada), Texas Instruments (US), Intel Corp (US), Eurotech (Italy), STMicroelectronics (Switzerland), Renesas (Japan), Infineon Technologies (Germany), Airbiquity (US), Qualcomm (US), Visteon (US), Vodafone Group (UK), Microsoft Corporation (US), Alphabet Inc (US)., AT & T (US), Cloudmade (UK), Sierra Wireless (Canada).

RECENT HAPPENINGS IN THE MARKET:

• In January 2023, Vin Fast and NXP Semiconductors declared their partnership for the next iteration of automotive applications for Vin Fast. The partnership supports Vin Fast’s mission to create smarter, greener, and more connected electric vehicles. Under the terms of the partnership, Vin Fast intends to utilize NXP’s processors, semiconductors, and sensors. Vin Fast and NXP will collaborate on the early phases of developing new Vin Fast automotive initiatives utilizing NXP’s extensive portfolio of system solutions for innovative applications. 
• In January 2023, HARMAN introduced HARMAN Ready on Demand, an app-based software platform for delivering branded audio value, feature enhancements, and monetization opportunities. 
• In November 2022, Tom Tom International announced that it would power the next iteration of PTV Gropu’s professional truck navigation app. PTV Truck Navigator G2. PTV Group will use Tom Tom’s newly launched Navigation SDK (Mobile Software Development Kit) to enable up-to-date maps, custom truck routing, and other features in their app, which is now available globally for the first time.