Asia Pacific Internet of Cars - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia Pacific Internet of Cars - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia Pacific Internet of Cars market is expected to register a CAGR of more than 21.67% during the forecast period.

Key Highlights

• Vehicles today are equipped with various electronics and machinery equipment. However, significant technological developments over the last decade have led to connected cars coming into use today, which is expected to evolve. Connected cars improve road safety, facilitate anti-theft features, and assist the driver by exchanging critical information between nearby infrastructure and vehicles.
• China is the fastest-growing region for automotive technology manufacturers. Due to growing affordability, the Asia Pacific region's consumption patterns are changing. India is a growing technology hub with recent advancements in IoT and telematics. These have enhanced connectivity, communications, and responses, offering infotainment, safety, security and increased vehicle management to drivers, passengers, and commuters.
• According to thehindubusinessline.com, in September 2022, Vedanta and Foxconn signed MoUs to set up semiconductor manufacturing units in Gujarat, India, worth about INR 1 trillion. Such projects support an uninterrupted supply of semiconductor additions to automobiles and other industries, supporting the growth of IoT in cars.
• However, hurdles like semiconductor shortage continue to haunt the automakers, leading to supply chain, production, and delivery delays. This has also forced the automakers to drop some of their products' crucial features and offerings to compromise with the available options. Governments and private manufacturing giants continue to bridge the gap by planning new foundries to fill the demand gaps for semiconductors in the automotive manufacturing industry.
• Most OEM and Tier I companies have experienced supply disruptions in the last few months due to the COVID-19 outbreak. Supply chain disruptions obstruct the supply of raw materials and parts, resulting in production delays. The market is recovering, and as electric vehicles enter the market, the internet of cars is expected to show promising results in the Asia Pacific.

Key Market TrendsNew Technologies like 5G and AI to Boost the Demand for Internet-Enabled Cars

• The connected cars and related IoT features in automobiles are gaining popularity among the audience. Brands are adding new features to existing and expected models for enhanced user experience, convenience, and safety. But, this also demands better connectivity for these features to perform as they desire. Hence, Asia Pacific, as a growing technology hub, is also witnessing telecom providers offering network and integrated solutions.
• In April 2021, Vodafone Idea launched Vi Smart Mobility in India, offering fully-integrated, connected car solutions for automotive OEMs. The company continues to provide the same in the region. The connected features in cars require fast and consistent internet. The introduction of 5G will bolster the overall growth of the market.
• The expected number of subscriptions will encourage the network providers to upgrade the existing facilities and infrastructure to facilitate the demand for 5G IoT systems, both protective and regularly functioning, to receive the necessary network support. The high-speed internet would allow faster response time, increasing the effectiveness of in-car internet-driven features.
• According to the Mobile Economy Asia-Pacific 2022 report by the GSMA, 5G adoption will grow across Asia-Pacific, with more than 400 million 5G connections, accounting for just over 14% of total mobile connections, by 2025. This also encourages the automakers to install the existing and upcoming vehicles with compatible 5G bandwidths in respective markets for future-ready products.
• The increasing use of sensors and data technologies makes AI essential for quick and precise decision-making. Some automobiles already use AI for Level 3 autonomous driving, but for the industry to reach Level 5, significant enhancements must be made to the cars and infrastructure in Asia Pacific countries.

China and India Will Hold A Significant Market Share

• Owing to the increase in the connectivity features of the latest car models, China is likely to lead the market in the Asia Pacific. As China's domestic market is growing, it will shape the future related car industry with increasing technological advantages in ICT, data processing and platform services, secure industrial investment, and a very dedicated industrial strategy and support from the central government.
• The increasing adoption of electric vehicles in China indicates people's readiness to adopt new technologies. As most of the new-age electric vehicles feature connected car tech, including cloud-powered features, the rising sale of electric vehicles signifies the increasing interaction of the Chinese population with these features and technologies. According to NIO Inc., The company's total revenue in the third quarter of 2020 accounted for CNY 16.26 Billion, compared to CNY 36.14 Billion in 2021.
• In developing countries like India, the growth of communication and information technology infrastructures like 5G or 4G LTE will push the demand for connected cars. Also, favorable government policies will increase the growth market owing to the rise in the safety regulations for security, protection, and authorization.
• Companies such as Maruti Suzuki and Nissan India collaborate with connected car manufacturers to equip connecting-car technology and offer additional control, security, convenience, safety, and social sharing features. As a result, automobiles will witness carmakers provide more connected technology in their vehicles, utilizing the growing network infrastructure in the country.
• The adoption of new technology can be inferred from the increasing demand for EVs in the Indian market. According to The Times of India, in July 2022, Tata Motors reported 82% growth in June 2022, with Nexon EV Max in higher demand. The group registered demand for 79,606 units against 43,704 units in the same period last year. This shows the active adoption of new connected technology in the automotive industry in India to account for substantial growth.
• Owing to the increase in the connectivity features of the latest car models, China is likely to lead the market in the Asia Pacific. As China's domestic market is growing, it will shape the future related car industry with increasing technological advantages in ICT, data processing and platform services, secure industrial investment, and a very dedicated industrial strategy and support from the central government.
• The increasing adoption of electric vehicles in China indicates people's readiness to adopt new technologies. As most of the new-age electric vehicles feature connected car tech, including cloud-powered features, the rising sale of electric vehicles signifies the increasing interaction of the Chinese population with these features and technologies. According to NIO Inc., The company's total revenue in the third quarter of 2020 accounted for CNY 16.26 Billion, compared to CNY 36.14 Billion in 2021.
• In developing countries like India, the growth of communication and information technology infrastructures like 5G or 4G LTE will push the demand for connected cars. Also, favorable government policies will increase the growth market owing to the rise in the safety regulations for security, protection, and authorization.
• Nowadays, companies such as Maruti Suzuki and Nissan India collaborate with connected car manufacturers to equip connecting-car technology and offer additional control, security, convenience, safety, and social sharing features. As a result, automobiles will witness carmakers provide more connected technology in their vehicles, utilizing the growing network infrastructure in the country.
• The adoption of new technology can be inferred from the increasing demand for EVs in the Indian market. According to The Times of India, in July 2022, Tata Motors reported 82% growth in June 2022, with Nexon EV Max in higher demand. The group registered demand for 79,606 units against 43,704 units in the same period last year. This shows the active adoption of new connected technology in the automotive industry in India to account for substantial growth.

Competitive Landscape

The Asia Pacific Internet of cars market is moderately consolidated with different players. As the demand for connected systems and the Internet of Things are growing in the region, car manufacturers are trying to have an edge over their competitors by making joint ventures and partnerships and launching new products with advanced technology. This includes laying down the network foundation for the expected features and technologies to be introduced in the automotive industry.

• February 2022 - SingleStore, the single database for all data-centric applications, announced a strategic partnership with Directed Technologies, the major automotive and electronics connected solutions manufacturer, and Sisense. The partnership would allow Directed Technologies to provide better-connected car technology to OEM partners and other customers.
• September 2022 - Webex by Cisco became one of the early application providers to get a pan-Indian universal license. The company reported now being able to provide services in all 22 circles. One of the Cisco Spokespersons told how the license would enable the company to offer enhanced Webex collaboration services to its partners and customers in India. The company had already been issued the National Long Distance, International Long Distance license by the Department of Telecommunications(DoT). This would help serve different end-users like automotive, etc.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.