India Electric 2W and 3W Vehicles IoT Market Analysis and Forecast to 2032: By Application (Infotainment, Fleet Management, Predictive Maintenance, Vehicle Security, Automatic Driver Assistance System, Traffic Management) and Vehicle Type (Electric 2-Whee

India Electric 2W and 3W Vehicles IoT Market Analysis and Forecast to 2032: By Application (Infotainment, Fleet Management, Predictive Maintenance, Vehicle Security, Automatic Driver Assistance System, Traffic Management) and Vehicle Type (Electric 2-Wheelers, Electric 3-Wheelers)

The India Electric 2W and 3W Vehicles IoT market was valued at US$ 32.1 million in 2022 and it is anticipated to grow up to US$ 873.6 million by 2032, at a CAGR of 36.2% during the forecast period.

IoT provides users the ability to monitor and control devices remotely. It allows charging stations to cater their services to EV drivers and react immediately to unforeseen circumstances. CPOs (businesses that run a network of charging stations) may increase performance going ahead and enhance the charging experience through continuous data collecting from these devices.

Instead of having to cobble together the user's system, the user can provide the simplified service and consistent uptime user clients expect with a managed IoT connection solution.

The market for electric vehicles is expanding quickly every day to reduce pollution levels in the nation. IoT-enabled scooters have joined the online delivery market to ensure productivity and the protection of both the driver and the cargo. It is changing the delivery industry as a whole.

Market Drivers and Trends

Increasing demand for IoT to track electric vehicle charging stations to decrease grid load will fuel the overall market growth. As electric vehicles (EVs) become more common, it is essential to have a method to monitor charging stations in order to reduce grid load. This can be accomplished through the use of the internet of things (IoT). Charging an EV consumes a lot of power, and if a lot of people do it at the same time, it can put a burden on the grid. The internet of things (IoT) is playing an increasingly important role in electric vehicle (EV) charging stations. The Internet of Things (IoT) can provide real-time data that can be used to optimise station performance and enhance customer experience by connecting devices and systems. The Internet of Things, for example, can be used to watch charging status and determine when a charge is finished. This data can be used to stop billing automatically or to alert the customer. The Internet of Things can also be used to monitor energy consumption and demand patterns. This data can help operators better understand how their stations are being used and identify opportunities for improvement. Hence, the benefits of using the IoT in EV are numerous and far-reaching. By leveraging the power of the IoT, can make EV charging stations more efficient, easier to use, and more reliable.

Market Restraints and Challenges

Data is more susceptible to hacker attacks and data theft because there are now numerous devices connected to the Internet and as a lot data is sent over a network. Personal information could be stolen from the system by hackers and used inappropriately. As a result, it is important to strengthen and make more hack-proof the IoT devices connected to the EV and gathering all of the information.

The risks are considerably greater than those posed by a single vehicle or even a single OEM. IoT allows a malware-ridden EV to communicate with its charging station, and from there to a network of other vehicles and even the entire power infrastructure. While a widespread threat to IT cybersecurity could be devastating to public image and cost millions to repair, a similar type of assault on automotive could have the same effect. This is one of the reasons why key stakeholders in India have requested legislation to ensure that EVs and charging stations use network segmentation technology to reduce the related risk.

Furthermore, many of the current charging stations employ the outdated Open Charge Point Protocol, an older version of HTTP, which does not encrypt data or interactions. This could result in relay or man-in-the-middle attacks, in which attackers use an apparently legitimate signal, such as WiFi. This flaw could also enable attackers to completely reconfigure charging queries and obtain root access to the station.

USB ports on charging stations could also be used for malicious intent that could directly affect driver privacy. Through a simple flash drive, logs and data can be copied to the drive, giving attackers not only the data on the OCPP server itself, but also confidential information on users of the charging point, allowing attackers to copy their ID numbers or even track their location. For instance, according to the Indian Government Indian Computer Emergency Response Team (CERT-In), which is mandated to track and monitor cyber security incidents in India received reports of vulnerabilities in a product and application related to electric vehicle charging station. Hence, risk associated with using IOT enabled 2w-3W EV’s may hamper the industry growth to some extent.

India Electric 2W and 3W Vehicles IoT Market Segmental Overview

The report analyses the India Electric 2W and 3W Vehicles IoT market based on application and vehicle type.

India Electric 2W and 3W Vehicles IoT Market by Application

Based on application, it is segmented into infotainment, fleet management, predictive maintenance, vehicle security, automatic driver assistance system, and traffic management. The fleet management segment is expected to have the largest India Electric 2W and 3W Vehicles IoT market share in 2022.

The application of IoT in the automobile industry has significantly advanced fleet management. Today's electric 2-wheelers and 3-wheelers have sensors for position monitoring and other purposes. A cloud application stores the sensory data gathered from a sizable fleet of such vehicles. Next, this data is transformed visually after being analyzed by various analytics features. This information is simple for a fleet operator to monitor the many fleet-related parameters.

Some of the benefits that an IoT infused fleet management system offer to a fleet manager are:

Real-time location monitoring of the fleet

Weight/Volume tracking of cargo that the fleet is carrying

Trucks’ performance statistics like fuel and mileage

Tracking traffic conditions on the road

Route management

Time and Driver management

India Electric 2W and 3W Vehicles IoT Market by Vehicle Type

Based on vehicle type, it is bifurcated into electric 2-wheelers, electric 3-wheelers. The electric 2-wheelers segment is expected to dominate the market during the forecast period.

Sales of electric two-wheelers increased by 305% from 2021 levels. According to a February 2023 article by CleanTechnica, the markets for two-wheel EVs have increased from fewer than 2,000 vehicles in 2013 to over 600,000 per year per year in 2022. Hero Electric, Okinawa Autotech, and Ola Electric have been the top 3 producers. According to a CleanTechnica report from February 2023, EV sales made about 4% of total two-wheeler sales in 2022. The Indian government's measures to improve e-mobility in the nation are what are driving all of this growth.

During the COVID-19 outbreak, sales of electric bikes and scooters decreased. Nevertheless, in the second half of 2020, the market swiftly rebounded, and demand is now rising quickly. Together with cost reductions and lower operational expenses, other market-driving considerations include noise and air pollution in large cities.

Via its FAME (Faster Adoption and Manufacture of Electric Vehicles) 2 policy, the Indian government promotes the use of EVs. Even battery switching is planned by the Indian Finance Minister for his FY 22 budget. Both the market and the government are driving EV adoption. The manufacturing of components is becoming localised, which lowers costs. Moreover, FAME 2 provides financial aid for fast electric two-wheelers.

As a result, the Indian market for electric two-wheelers is booming. With growth rates this high, it won't be long until some of India's major cities have calmer streets and better air.

Moreover, with the scooter-sharing revolution of 2018, IoT was introduced into bikes and scooters. There is a tremendous demand for e-bikes, especially as the technology required to make them widely available becomes more affordable and widely available. E-bikes are also becoming more common in public and private use, from one-time bike rentals and delivery drivers to private ownership, as the technology underlying them becomes more accessible and inexpensive. Security measures are required in each capacity to keep track of these bikes, and IoT has shown to be a successful method.

Major Players in the India Electric 2W and 3W Vehicles IoT Market

The key players studied in the India Electric 2W and 3W Vehicles IoT market are Texas Instruments Incorporated, NXP Semiconductors N.V., Intel Corporation, TomTom International BV, Cisco Systems, Inc., Microsoft Corporation, IBM Corporation, Google LLC, AT&T, and Robert Bosch GmbH.

COVID-19 Impact

During the pre-COVID-19 pandemic, the sales of electric vehicles were higher. Since their single-digit growth in FY2019, internal combustion engine vehicle sales may have suffered. In contrast, the nation's emerging electric vehicle (EV) industry posted respectable figures, albeit from a considerably smaller basis. India's overall EV sales in FY2019 exceeded the 7,50,000-unit threshold and totaled 7,59,600 units. This comprises 1,26,000 electric two-wheelers, 6,30,000 electric three-wheelers, and 3,600 electric passenger EVs, resulting in triple-digit growth (130%) for electric two-wheelers year over year (YoY). Although the FY2019 data show a large increase year over year, the actual situation appears frightening, especially in light of the government's announcement of the much-expected FAME II (Faster Adoption and Manufacture of Electric Vehicles) initiative in early April.

The COVID-19 pandemic significantly disrupted the auto sector, affecting consumer demand for electric automobiles, two-wheelers, and three-wheelers. According to the Society of Electric Vehicle Manufacturers (SMEV), sales of all-electric vehicle registrations fell by 20% to 236 802 units in FY21 from 295 683 in FY20. The largest of the three, electric two-wheelers (E2W), had a fall of 6%. 143,837 electric two-wheelers were sold at the end of FY21, down from 152,000 in FY20. During FY21, a combined 40,836 high-speed and 103,000 low-speed E2Ws were sold. The pandemic had the greatest effect on electric three-wheelers (E3W), just like on the market for three-wheelers fueled by fossil fuels. Sales for the E3W sector were 88,378 units, a 37% decrease from the 140,683 units sold in FY20. Also, the pandemic affected and hampered the supply of lithium-ion battery packs in FY21 for many weeks. After this, the government imposed restrictions on shipments coming from China, which once more severely hampered the supply of batteries. India relies on China, the only manufacturer of lithium-ion cells, to produce battery packs. However, there was a little increase in automakers' spending on digital technology, such as IoT, during the COVID-19 pandemic, and the market for EVs as a whole declined. Therefore, India electric 2W and 3W vehicles IoT market had a negative impact during the COVID-19 pandemic.

The post-COVID-19 pandemic scenario for India electric 2W and 3W vehicles IoT market will be positive. The country will see an increase in new EV registrations, and the integrated IoT telematics in new EVs is anticipated to increase by roughly 88%. The widespread adoption of integrated IoT solutions is anticipated due to rising smartphone usage and app acclaim. With the aid of IoT, the vehicle-to-vehicle (V2V) communication type is developing quickly throughout India. It enables on-road vehicles to interact with one another by exchanging information about speed, weather, and other variables across ad hoc networks built up between them. Consumer adoption of in-vehicle communications has been quite high. India is working on adopting V2V and vehicle-to-infrastructure (V2I) using IoT to reduce traffic dangers and collisions. Further, according to an article in The Hindu, from February 2023, India's EV sales reached one million units for the first time in 2022, marking a record 206% year-over-year rise over 2021's EV sales figures. With 10,54,938 units sold, India's EV sector had a record-breaking year in sales across all vehicle segments in 2022, making up 4.7% of all vehicle sales. A more than threefold rise in EV sales from the 3,44,495 units delivered in 2021 is expected for 2022. With sales of 6,69,845 units in 2022, high-speed E-2-wheelers demonstrated the largest segment share and a tremendous growth rate of 291% over CY 2021 figures.

Recent Developments

January 2023, NXP Semiconductors launched a new 28nm RFCMOS radar one-chip IC family for next-generation ADAS and autonomous driving systems. The new SAF85xx one-chip family integrates NXP's high performance radar sensor and processing capabilities into a single device, providing tier one and OEMs with greater flexibility in addressing short, medium, and long range radar applications to meet increasingly stringent NCAP safety criteria.

September 2022, TomTom (TOM2), revealed that Hyundai Motor Group (HMG) has chosen its maps and real-time traffic data to support its full car portfolio in Europe. Millions of New cars will be fitted with this technology as standard in the next years.

July 2022, Mobileye, an Intel business, has introduced the EyeQ KitTM, its first software development kit (SDK) for the EyeQ® system-on-chip, which supports driver-assistance and future autonomous technologies for automakers across the world. EyeQ Kit, which is designed to leverage the powerful and highly power-efficient architecture of the upcoming EyeQ®6 High and EyeQ®Ultra processors, enables automakers to leverage Mobileye's proven core technology while dispatching their own distinct code and human-machine interface tools on the EyeQ platform.

April 2022, Cisco and General Motors are collaborating to modernize and automate the development process for vehicle development data for performance monitoring, hence reducing time-to-market for commercially viable automobiles.

June 2021, Texas Instruments Incorporated (TI) announced a $900 million agreement to buy Micron Technology's 300-mm semiconductor facility (or fab) in Lehi, Utah. This investment strengthens the company's competitive edge in manufacturing and technology and is part of the company's long-term capacity planning.

India Electric 2W and 3W Vehicles IoT Market Report Coverage

The report offers a comprehensive quantitative as well as qualitative analysis of the current India Electric 2W and 3W Vehicles IoT market outlook and estimations from 2023 to 2032, which helps to recognize the prevalent opportunities.

A thorough analysis of market trends and restraints is provided.

Region-wise, as well as country-wise conditions, are broadly evaluated in this report.

The forecasts in this report are made by examining the recent trends along with future India Electric 2W and 3W Vehicles IoT market potential from 2023 to 2032 in terms of revenue.

Porter’s five forces analysis, SWOT analysis, COVID-19 impact analysis, Russia-Ukraine war impact, and PESTLE analysis of the India Electric 2W and 3W Vehicles IoT market are also analyzed.

Major players in the market are profiled in this report and their key developmental strategies are studied in detail. This will provide an insight into the competitive landscape of the India Electric 2W and 3W Vehicles IoT industry.

Frequently Asked Questions

Q1. How big is the India Electric 2W and 3W Vehicles IoT market?

Ans. The India Electric 2W and 3W Vehicles IoT market size was US$ 32.1 million in 2022 and is anticipated to reach US$ 873.6 million in 2032, growing at a rate of 36.2% from 2023 to 2032.

Q2. What is the India Electric 2W and 3W Vehicles IoT market growth rate?

Ans. The growth rate of the India Electric 2W and 3W Vehicles IoT market is 36.2% from 2023 to 2032.

Q3. Which segment accounted for the largest India Electric 2W and 3W Vehicles IoT market share?

Ans. Based on vehicle type, it is segmented into electric 2-wheelers and electric 3-wheelers. The electric 2-wheelers segment is expected to be the largest segment in the India Electric 2W and 3W Vehicles IoT market in 2022.

Q4. Who are the key players in the India Electric 2W and 3W Vehicles IoT market?

Ans. The India Electric 2W and 3W Vehicles IoT market report includes players such as Texas Instruments Incorporated, NXP Semiconductors N.V., Intel Corporation, TomTom International BV, Cisco Systems, Inc., Microsoft Corporation, IBM Corporation, Google LLC, AT&T, and Robert Bosch GmbH.

Q5. What are the factors driving the India Electric 2W and 3W Vehicles IoT market growth?

Ans. The major factors driving the growth of the market are increasing demand for IoT to track electric vehicle charging stations to decrease grid load and accelerated regenerative braking system with IoT integration.

Q6. What are the key growth strategies of India Electric 2W and 3W Vehicles IoT market players?

Ans. The key growth strategies of India Electric 2W and 3W Vehicles IoT market players are business expansion, partnerships, joint ventures, collaborations, product launch, and deals.

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