In-Vehicle Connectivity Market size would register considerable gains through 2027, driven by the rising penetration of technologies and use of cutting-edge technological devices in automobiles. The in-vehicle connectivity enables enterprises to better manage the fleet while offering customer satisfaction and loyalty.
Moreover, a surge in efforts by governments for developing intelligent transportation systems, rising demand for smartphone features in the car, and automated driving technologies along with passenger safety features would bolster the market progression. For instance, the United Kingdom government, had recently announced regulating the use of self-driving vehicles at slower speeds on motorways. It was revealed that the government is working on updating the nation’s highway code for the safe use of self-driving vehicle systems.
However, cybersecurity is expected to emerge as a prominent impeding factor for in-vehicle connectivity market growth. In-vehicle connectivity systems comprise of hardware, software, Bluetooth, and mobile apps, each of which is susceptible to cyberattacks. Increased scope of application of 5G and IoT in vehicles of today would offer a potential boost to the market growth.
Various telecom conglomerates are developing and deploying 5G to increase the efficiency of in-vehicle connectivity software and solutions. Citing an instance, GM and AT&T announced their partnership to launch high-performance 5G network in select vehicles, beginning 2023.
Based on the type of services, infotainment segment is touted to gain proceeds over 2021-2027. In-vehicle infotainment is described as a combination of vehicle systems that are generally used for delivering entertainment and information to the passengers and driver via video/audio interfaces and control elements like button panels, touch screen displays, and voice commands. Increased deployment of these systems in passenger and commercial vehicles would further catalyze the in-vehicle connectivity market progression over the foreseeable time frame.
In terms of the vehicle type, passenger vehicles segment would gain substantial impetus in the coming years, driven by the rising demand for safety, luxury, comfort, and convenience in the vehicle environment. Moreover, the increasing demand for in-vehicle payment and infotainment services for hassle-free, safe, and secure driving experience is further accelerating the product demand. Additionally, growing sales of passenger vehicles worldwide would bolster the market dynamics through the coming years. The mounting demand for road-side assistance via telematics solutions in PV is also anticipated to fuel the industry statistics.
Geographically, Asia Pacific in-vehicle connectivity market would expand at a significant CAGR over the forecast time period. This can be attributed to the rising disposable income and spending on premium and luxury vehicles in countries like India, Indonesia, and China. In addition, expanding IoT infrastructure development, aligned with the surging internet penetration would contribute to the regional market growth.
General Motors, Bayerische Motoren Werke AG, Audi AG (Volkswagen Group), Ford Motor Company, MG Motors, Harman International Industries Inc. (Samsung Electronics, Samsung Electronics America), IBM Corporation, Hyundai Motor Corporation (Hyundai Motor Group), and others, are some of the key players functioning in the business space of in-vehicle connectivity market.
These vendors are relentlessly working towards the development of new products in the market and undertaking strategic initiatives including partnerships, collaboration, and acquisitions. Outlining a recent development, MG Motor India recently declared partnering with Jio India on IoT space to offer integration of IT systems enabled by the latter’s IoT solution in its upcoming mid-size SUV.
The coronavirus pandemic has had a negative impact on global in-vehicle connectivity market expansion, mainly due to the declining sales of vehicles worldwide. Statistics revealed that a 16% decline in automobile production was recorded in 2020. This reduction is projected to have a significant impact on the overall dynamics of the in-vehicle connectivity segment through the coming years.