The global automotive IOT market to experience CAGR of 26.75% during the 2016-2023. Automotive IoT is mainly concerned with internet of connected vehicles that distributes three kinds of communications such as vehicle-to-vehicle, vehicle-to-infrastructure and in-vehicle. In a vehicle, an Internet connection can be active for infotainment, navigation, and telematics applications. The major boosting factor of the global automotive IOT market is self-driven cars expected to transform the IOT-enabled automotive market and predictive maintenance. The major driving factors are increasing demand for assisted & automated driving, rise in telematics mandates by governments and demand for smartphone features in cars. Moreover, lack of cellular connectivity coverage and cost burden on consumers are the key factors that are restricting the growth of the global automotive IOT market. Moreover, the major challenges of the global automotive IOT market are security concern with data generated by IOT devices and variance in product life cycle of smartphones and embedded solutions in cars.
Based on the segmentation, the global automotive IOT market is segmented into connectivity form factor offering, communication type and application. The communication type segment is segmented into in-vehicle communication, vehicle-to-vehicle communication and vehicle-to-infrastructure communication. The connectivity form factor offering segment is further segmented into embedded, tethered and integrated. The offering segment is sub segmented into hardware, software and services. Application segment in the global automotive IOT market includes navigation, telematics and infotainment.
Geography, the global automotive IOT market is segmented into North America, Europe, Asia Pacific and Rest of the World. Asia Pacific is anticipated to be the fastest growing region in the global automotive IOT market during the forecasted period (2016-2023). Moreover, North America holds the major revenue share in the automotive IoT market in 2016. Occurrence of key players such as Ford and General Motors who have been evidencing connectivity services. The telecommunications giant such as AT&T and others added around 2.7 million connected cars in the U.S. The major players of the global automotive IOT market are International Business Machines Corporation, Cisco Systems, Inc., Google Inc., AT&T Inc., Audi AG, Ford Motor Company, General Motors and Others. Companies are adopting numerous strategies such as collaboration, merger & acquisition, product launch and partnership. Whereas, merger & acquisition is the key strategy adopted by the companies of Automotive IOT market. For example, in the year 2016 Verizon announced acquisition of Fleetmatics, Ireland based company. The Fleetmatics offers software to aid commercial truck and fleet operators and web-based logistics solutions.
a Dublin, Ireland based company, that provides web-based logistics software and solutions to help commercial truck and fleet operators manage their fleets efficiently via an automated system that tracks vehicle location, fuel usage, speed, mileage, etc.