Internet of Vehicles Market Analysis | 2022-2028

Market Insights

The Global Internet of Vehicles Market is expected to grow from USD 83.65 billion in 2021 to USD 311.00 billion by 2028 at a CAGR of 20.6% during the forecast period. 

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Market Dynamics

The global market for Internet of Vehicles has experienced remarkable growth in recent years. Key factors driving the demand for the Internet of Vehicles market include growing demand for safer, more efficient, and more convenient driving experiences and government initiatives to decrease the number of road accidents. For instance, the European Transportation Authority has mandated eCall. According to the mandate, every new car must have eCall capability for emergencies. Additionally, the government has also begun implementing mandates for connectivity services.

For instance, the Government of India, under AIS-140, has mandated connecting features for public transport vehicles. The mandate is been regulated and enforced since April 2018 and is expected to be a major factor in the integration of connected technologies in public transport vehicles in the upcoming years. These government regulations boost the demand for IoT-based connected vehicles, thereby accelerating the growth of the global Internet of Vehicles market.

Notable regulatory changes are being applied, especially in the US and China. For instance, the US Federal Communications Commission (FCC), in November 2020, announced that it would move away from Dedicated Short-range Communications (DSRC) to a Cellular V2X (C-V2X) system for vehicle communications.

The new policy is to reassign a substantial share of the 5.9 GHz band to new automotive communications. Moreover, C-V2X is the newly dedicated standard for these automotive communications. The policy change has well received unanimous support from prominent automakers, wireless carriers, and broadband providers. This enables an exponential number of applications based on C-V2X deployed over a 5G network, particularly allowing the Internet of Vehicles to process and respond to data in nanoseconds.

Similarly, in 2020, China's government assigned a dedicated bandwidth for the use of C-V2X on the 5.9 GHz spectrum. Moreover, the country plans to implement the technology across 90% of the key roadways and municipalities over the forecast period. Implementing C-V2X will require a significant amount of time; however, implementing such policies will incentivize and give assurance to major players to invest in an Internet of Vehicles ecosystem. Therefore, the regulatory shift is anticipated to boost the growth of the market.

With the development of the 5G network, manufacturers aim to move to a cloud-based electrical/electronic (E/E) vehicle framework. Processor-intensive tasks, such as image processing and road condition observation can be moved to the cloud. It improves processing capabilities and enhances operational efficiency, among other advantages that are necessary to meet future mobility requirements.

For instance, in 2020, Qualcomm introduced a new Car-to-cloud service that can support over-the-air (OTA) vehicle updates and on-demand services and features, among others. Therefore, the growing penetration of cloud-based services in the automotive industry is a positive trend for the growth of the market.

Increasing demand for connected vehicles; smart traffic management systems, and government initiatives for smart cities; increasing approvals & investments for autonomous vehicle testing; growing demand for infotainment and real-time vehicle tracking systems; and growing adoption of road vehicle safety solutions are the major factors driving the growth of the global Internet of Vehicles market.

Segments Analysis

By offering, the software segment is expected to hold the largest market over the forecast period

The software market covers platforms and solutions that are crucial to the functioning of IoT in an automobile. Software solutions help meet interoperability challenges that arise because of varied heterogeneous devices, process real-time data, and ensure security and privacy. Factors such as the growing adoption of connected cars and advancements in high-speed networking technologies have triggered the adoption of IoT software solutions.

The market for vehicle-to-vehicle is expected to register the highest CAGR during the forecast period

It is fast as well as reliable and gives real-time alerts to drivers. It does not have the issue of vehicle shadowing wherein a smaller vehicle is shadowed by a larger vehicle, preventing it from communicating with the roadside infrastructure. Vehicle-to-vehicle communication enables a vehicle to broadcast its speed, position,  brake status, steering-wheel position, and other data to other nearby vehicles. Implementation of safety & security, curve speed warning, forward hazard warning and overtake vehicle warning are some of the key factors driving the growth of the vehicle-to-vehicle communication market segment. Limitations of presently installed systems that use ultrasound or radar to detect few car lengths and are unable to pass nearest obstructions are the key factors driving the vehicle-to-vehicle communication market.

North America is expected to account for the largest market size over the forecast period

The North American Internet of Vehicles market is expected to hold the largest market share over the forecast period. The US is a major contributor to the growth of the automotive market in the region. The presence of major companies such as General Motors and Ford who have been providing connectivity services in their vehicles is the key factor driving the market. Furthermore, the US is the largest telematics which is also attracting the Internet of Vehicles market.

Key Players

The major players operating in the global internet of vehicles market are:

• Google LLC (US)
• IBM (US)
• NXP Semiconductor (Netherlands)
• Intel Corporation (US)
• Apple Inc. (US)
• Cisco Systems Inc(US)
• Volkswagen (Germany)
• Ford Motor Company (US)
• Cloud Your Car (US)
• Veniam (US)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Recent Developments

• In December 2022, Qualcomm unveiled the Lowest Power IoT-Optimized LTE Modem with integrated positioning support for better connectivity, location tracking, and computation features both on the device and at the edge.
• In July 2022, NXP collaborated with Foxconn, the world’s largest electronics manufacturer and a leading technology solution provider, on next-generation smart connected vehicle platforms.
• In April 2022, Cisco and General Motors announced a collaboration to deploy Cisco wireless backhaul technology for real-time and high-speed performance testing of General Motors’ pre-production vehicles. Cisco’s industrial wireless networking enables General Motors’ engineers to quickly analyze crucial vehicle data to make faster and data-driven decisions.
• In January 2022, Mobileye launched the new EyeQ Ultra system-on-chip for autonomous vehicles and expanded relationships with prominent automakers including Ford, Volkswagen Group, and Geely’s ZEEKR brand.