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The automotive technologies market size is estimated to grow at a CAGR of 11.65% between 2023 and 2028. The market size is forecast to increase by USD 204.02 billion. Several factors play a crucial role in the market's growth, such as the rising adoption of ADAS features in vehicles, the integration of advanced safety technologies in luxury cars, and the rise in technological advances in automobiles.
The report offers extensive research analysis on the Automotive Technologies Market, with a categorization based on End-user, including passenger cars and commercial vehicles. It further segments the market by Component, encompassing hardware, software, and services. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the automotive technologies market growth is the rising adoption of ADAS features in vehicles. The increasing adoption of an advanced driver assistance system is expected to fuel the market growth. In addition, the rapid adoption of software algorithms, processors, sensors, cameras, and advanced technologies in mapping obstacles has improved the applications of ADAS in vehicles.
Moreover, governments in developing countries have imposed stringent safety norms on automotive manufacturers to develop vehicles equipped with ADAS features amid growing concern regarding the security and safety of passengers. For instance, on August 31, 2021, the Government of India made it mandatory to equip a Co-driver airbag in all vehicle segments. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the automotive technologies market growth is the increasing developments in semi-autonomous and autonomous vehicles. An autonomous vehicle is also referred to as a driverless car or self-driving car and has the ability to read and sense the environment and operate with minimal or no human intervention. In addition, self-driving cars have become a major revolution in automation and connectivity technologies.
Moreover, computers, the internet, smartphones, and advanced technologies are being merged with vehicles to assist and automate driving operations. In addition, rapid improvement in sensor-processing technologies, high-definition mapping, and adaptive algorithms, as well as the deployment of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies, are fuelling several companies to expand their production capacities and take vehicle automation to a higher level. Hence, such factors are driving the market growth during the forecast period.
The lack of standard protocols in the automotive sector is one of the key challenges hindering the automotive technologies market growth. The burden of various regulations impacts both new and existing products. In addition, many governmental standards govern the production of automobiles by regulating engineer and designer creativity. Furthermore, the key role of these standards is to increase driver and passenger safety, both on the road and against thefts.
Moreover, each country or region has its own regulations. Therefore, it implies that car companies should adapt their production standards to distribute their products in different markets around the world. Hence, these changing protocols in each country cause financial losses to the manufacturers as they need to set up different assembly units. Therefore, it is expected to hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Technologies Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Advanced Micro Devices Inc: The company offers ADAS, automated driving, in-vehicle experience, electrificiation and networking under automotive technology.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger cars segment is estimated to witness significant growth during the forecast period. There has been a significant technological development in the passenger car segment. In addition, technological upgrades are primarily driven by the dynamic nature of emission regulations, fuel efficiency standards, safety standards, and the pressure to decrease production costs. Furthermore, the passenger cars segment accounts for the largest share of the automotive vehicles industry.
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The passenger segment was the largest segment and was valued at USD 110.77 billion in 2018. Moreover, this can be attributed to the increasing disposable income of individuals belonging to the middle class. For instance, as per the data provided by the Organisation Internationale des Constructeurs dAutomobiles (OICA), the total number of passenger cars manufactured worldwide in 2022 was 61,598,650. In addition, APAC is the highest contributor to global passenger car sales and production. Furthermore, increasing production and sales of passenger vehicles across the globe is fuelling the demand for automotive technologies during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Automotive technologies are witnessing increasing adoption in APAC across all categories of vehicles (entry segment, mid-segment, and luxury variant). In addition, China, Japan, South Korea, and India are the key countries that are expected to fuel the growth of the connected car market in APAC. In addition, the increasing adoption of telematics solutions and connected infotainment are the major reasons for the growth of the automotive technologies market in APAC. Furthermore, there is an increasing shift toward ride-hailing services in India and Japan. Such factors are expected to drive the market growth in APAC during the forecast period.
The automotive technologies market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automotive Technologies Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.65% |
Market Growth 2024-2028 |
USD 204.02 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.7 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Airbiquity Inc., BlackBerry Ltd., Continental AG, HELLA GmbH and Co. KGaA, Hitachi Ltd., Infineon Technologies AG, Intel Corp., Microchip Technology Inc., Microsoft Corp., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., Renesas Electronics Corp., Robert Bosch GmbH, SONA BLW Precision Forgings Ltd., thyssenkrupp AG, Visteon Corp., Wipro Ltd., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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