In-Vehicle Connectivity Market size is anticipated to exhibit noteworthy CAGR from 2023 to 2032, driven by increasing private and public sector efforts towards the development of intelligent transportation systems. Back in September 2022, the U.S. government announced an investment of over USD 160 million in smart transportation technology.
Growing demand for automated driving technologies equipped with passenger safety features is further presenting growth pathways to the industry. It is estimated that 40% of new cars sold in UK will have self-driving capabilities in 2035. Towards that goal, the UK government invested in and launched the world’s first self-driving bus back in February 2023.
Despite such a broad scope for product adoption, cybersecurity is slated to pose major challenges to in-vehicle connectivity market growth. These systems comprising mobile apps, Bluetooth, and others are vulnerable to cyberattacks, which is likely to constrain business.
Based on type of services, industry size from infotainment segment is slated to grow at a considerable gains during 2023 to 2032, fueled by the growing consumer demand for sophisticated infotainment systems in commercial and passenger vehicles.
Back in February 2023, German luxury vehicle firm, Mercedes-Benz, inked a deal with Google, to create a next-generation navigation experience for its customers. Google’s geospatial offering will offer predictive traffic information to Mercedes-Benz owners and the companies will bring the YouTube app to the Mercedes-Benz infotainment system.
On the basis of vehicle, in-vehicle connectivity market from passenger vehicles segment is poised to witness a notable growth by 2032, supplemented by the higher sales of passenger vehicles globally. As per India’s IBEF, passenger vehicle sales in the country are expected to grow by more than 9% in FY24. Segment growth can also be attributed to rising demand for in-vehicle infotainment services for a secure and safe driving experience.
Asia Pacific in-vehicle connectivity industry is expected to register significant revenue by 2032, owing to surging expansion of IoT infrastructure in the region. As per India’s IBEF, it is anticipated that there will be nearly 27 billion connected IoT devices in India by 2025. In fact, in 2022, India’s Ministry of Electronics and Information Technology invested in a project named FutureSkill PRIME for upskilling ecosystem in ten emerging technologies including IoT.
Moreover, growing demand for luxury and premium vehicles in economies such as China, India, and Indonesia is further expected to supplement regional expansion.
Some leading in-vehicle connectivity market players include names such as Bayerische Motoren Werke AG, Ford Motor Company, Hyundai Motor Corporation (Hyundai Motor Group), Audi AG (Volkswagen Group), and, MG Motors, among others. Players are increasingly turning to IT partnerships and collaborations to bring their vehicle models to the connected age.
As part of the partnership, which is set to come into effect in 2023, millions of vehicles will be powered by Android and equipped with built-in Google apps such as Google Assistant, Google Maps, and others to provide in-vehicle connectivity services.
Growing number of road hazards has compelled automobile manufacturers to develop cellular vehicle-to-everything technology for autonomous vehicles. Many developed nations are working towards this technology to improve transportation systems while ensuring high road safety. In fact, in April 2022, the U.S. Department of Energy announced the Vehicle to Everything MOU for accelerating the adoption of electric vehicles in coming years. Government agencies are also collaborating with leading IT and automotive companies to deploy advanced vehicle assistance systems for maximum safety of drivers.