The Internet of things (IoT) is the network of strategy, automobile, and home appliances, which contain software, electronics, actuators, and connectivity. It is a technology where a virtual world assembles the physical world. IOT is used in the automotive industry by using various developments around smarter vehicles and related communications. IOT in the automotive industry is used for connecting people, vehicles, machines, auto parts, and services to simplify the flow of data, facilitate concurrent decisions, and improve automotive experiences.
According to study, “Asia-Pacific IoT in Automotive Market (2018-2023)” some of the major companies that are currently working in the Asia-Pacific IoT in automotive market are Cisco Systems Inc., Microsoft Corp., IBM Corp., AT & T Inc., Baidu, Honda, China Unicorn, Apple, Robert Bosch GmbH, Thales SA, Ford, Mercedes Benz, TomTom N.V, General Motors, NXP Semiconductors N.V.,Volvo Corp., BMW, Google Inc., Audi AG.
On the basis of the communication component, the market is segmented into software, hardware, and services. On the basis of connectivity form, the market is segmented into integrated, tethered and embedded. The integrated connectivity provides access to navigation services and remote control services. The tethered connectivity offers many internet protocol (IP) services and embedded solutions provide on-road experiences for passengers and drivers. In addition, on the basis of application, the market is segmented into telematics, navigation, fleet & asset management, predictive maintenance, collision avoidance, entertainment, and infotainment.
The market of IOT in automotive is mainly driven by an increase in the requirement for better traffic management followed by an increase in awareness regarding safety & security, and increasing disposable income. Apart from drivers IOT market faces some of the major challenges which include high maintenance cost & capital expenditure which lack infrastructure, and adds a cost burden to consumers and government regulations. In addition, some of the new opportunities which are expected to emerge include 5G technology might add challenge between the industry players.
Asia-Pacific region is the top emergent IOT in the automotive market, globally. India, China, and Japan are key countries for adopting IOT at a fast rate. Mainly in China, the government is changing focus towards less CO2 production and fuel competent solutions due to the increasing level of pollution. The other countries such as Japan and South Korea have instinctive support in technological development and taking significant steps in IOT development for automobile use.
Nowadays, in Asia-pacific, the governments of different countries have started focusing towards the penetration of artificial intelligence and smart vehicle development, which can be used for monitoring the behavior of the driver and the car condition. Moreover, the use of navigation is in the developing stage in some parts of the region. IOT based applications followed by rising by government investment and local trade innovation in India, China and Philippines expected to develop significantly over the forecast period.
It is estimated that Asia-Pacific IOT in the automotive market will be grown at a CAGR of 31.3%, with revenue of USD 18.6 billion, by 2023. Some of the new technologies associated with IOT based applications have developed in the region include adaptive cruise control, anti-lock brakes, automated guided vehicle system, electronic stability control, self-parking and lane-departure warning system, which will be helpful for higher growth opportunities in near future. It is also expected that Asia-pacific will become one of the most prominent market owing to high expansion in the automotive market and better connectivity infrastructures across the region.
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Ankur Gupta, Head Marketing & Communications