Global Internet of Cars Market - Segmented by Service (Business and Cloud Services, Support and Maintenance, Consulting Services), Software Solutions (Real time Transit Management System, Security Solution, Remote Monitoring System, Network Bandwidth Management), Applications (Mobility management, Vehicle Management, Entertainment, Safety), Products and Safety (Wireless and Cellular Modules, Sensors, Processors, Fleet Management, OEM Services), End-User (Government, Healthcare, Transportation and Logistics, Homeland Security), and Region - Growth, Trends, and Forecast (2018 - 2023)
The Internet of Cars market was valued at USD 68.12 billion in 2017, and is expected to reach a value of USD 365.96 billion by 2023 at a CAGR of 32.34%, during the forecast period (2018-2023). The scope of the report is limited to services offered by major players for Internet of Cars market including Business and Cloud Services, Support and Maintenance, Consulting Services. The end-users considered in the scope of the report include Government, Healthcare, Transportation & Logistics, and Homeland Security. The study also emphasizes on various attack points on materials used for Internet of cars and various regions considered globally along with various segments, such as software solutions, applications, products, and services.
Following the development of technology and emerging trends in IoT, Machine to Machine (M2M) and big data analytics, there has been a fast growth for IoT in the automotive sector. This exponentially growing trend of connected cars, along with other technologies, is driving the market on a large scale. These connected features involve the exchange of real-time data that offers better comfort, security, entertainment and safety for the end-user. Various automobile manufacturers, such as BMW, Mercedes, Ford, General Motors and others are now offering IoT-connected cars. It is expected that approximately 360 million connected cars would be on road by 2020, globally. To eradicate the situation of traffic blocks, the use of connected cars can be justified. Due to rise in urbanization, most of the cities across the world are facing traffic jams. For example, drivers in New York currently spend more time in traffic jams than those in any other city; they spend an average of 127 hours each year, stuck in traffic.
Rise in Demand for Safety, Comfort and Convenience in Automotive Sector Drives the Growth of Connected Cars.
Safety, comfort, and convenience systems have become vital in the automotive sector. In addition, the automobile industry, globally, is flourishing and it is expected that the total number of vehicles, globally, could double to 2.5 billion by 2050. In 2014, light vehicle sales exceeded the pre-crisis level (2008 financial crisis) for the first time, owing to rise in household incomes and fulfilment of overdue demand. At the same time, the need to replace obsolete vehicles is boosting demand for the automobile industry and presents significant growth opportunity for IoC manufacturers and suppliers.
Every year, approximately 1.25 million people are dying because of the road traffic crash. Moreover, 20-50 million people are suffering from non-fatal injuries, with many incurring a disability as a result of their injury. These injuries from road accidents are causing considerable economic losses to victims and to nations, as a whole. These issues are boosting the demand for more efficient safety systems in cars, which can tackle the accident situations on a real-time basis. The next groundbreaking connected solutions, such as integration between car parts and the whole software environment can create a smart car ecosystem.
Mobility Management is Expected to Have Highest Growth Owing to Traffic and Safety Concerns
Mobility management comprises of all the systems that allow drivers to reach their destination safe and quickly with optimal fuel consumption. In addition, cars can access real-time traffic information through their onboard navigation systems and reroute automatically to avoid traffic jams. They also can provide information on parking lots and refueling stations, which can save the travel time. Over the next few years, because of the advancements in IoT, drivers would be able to access highway warnings and messages to avoid the accidents.
Currently, the incorporation of IoT is typically remained in the sample stage because of the complex configurations and implementation process of hardware and software systems. However, mobility management has the potential to reduce maintenance cost and improve both asset availability and reliability. However, even to utilize the value services of IoT and cloud-based data networks, organizations need not only to collect data, but also need to invest more into building IT infrastructure. In addition, the shortage of data scientists and skilled professionals is a major issue hindering the mobility services market.
North America is One of the Largest Market for the Growth of Connected Cars in the Region
The emergence of information technology and the increased usage of IoT in automotive applications have added a new dimension in the manner of conducting business operations in this region. The deployment of smarter functional systems, based on IoT techniques, helps automotive companies establish and maintain an operational process. The growth of electric vehicles in North America presents a long-term growing opportunity and the increase in electronics content, particularly in vehicle management systems, to achieve greater emission control and improve safety features in cars. Thus, there is an attractive market for IoC, which is expected to accelerate the market growth. Spending in the United States logistics and transportation industry totaled USD 1.45 trillion in 2014 and represented 8.3% of annual GDP. New-vehicle registrations eclipsed the number of scrapped vehicles by more than 42%, in 2014, recording the highest rate since 2012 and this has increased the obsolete vehicle car fleet in the region.
Key Developments in the Market
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook