Enjoy complimentary customisation on priority with our Enterprise License!
The automotive technologies market size is forecast to increase by USD 203.98 billion, at a CAGR of 11.65% between 2023 and 2028. The market's growth is driven by several factors, including the rising adoption of Advanced Driver Assistance Systems (ADAS) features in vehicles, the integration of advanced safety technologies in luxury cars, and ongoing technological advancements in the automotive industry. The increasing implementation of ADAS enhances vehicle safety and driving convenience, making it a desirable feature for consumers. Luxury car manufacturers are at the forefront of incorporating cutting-edge safety technologies, setting a trend that is gradually influencing the broader market. Additionally, continuous innovations in automotive technology are leading to the development of smarter, safer, and more efficient vehicles, further propelling market growth. These elements collectively contribute to the expanding market, highlighting the evolving landscape of vehicle safety and technology. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
For More Highlights About this Market Report, Download Free Sample in a Minute
In the realm of automotive technologies, the landscape is evolving rapidly with the advent of luxury vehicles and semi-autonomous vehicles. Original Equipment Manufacturers (OEMs) are integrating cutting-edge mobile phone features and high speed connectivity services to meet consumer demands. Technology providers and automotive companies are driving innovation in the automotive technology market, leveraging advancements in IoT, ML, robotics, computer vision, and deep learning. As connected vehicles become commonplace, the industry is also focused on addressing cybersecurity threats through sensor fusion and foresight technology, enhancing on-premises automotive predictive technology to anticipate and mitigate risks effectively. 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.
The rising adoption of ADAS features in vehicles is the key factor driving the market. 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.
The increasing developments in semi-autonomous and autonomous vehicles is the primary trend shaping the market. 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 the major challenge that affects the market. 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 forecasting 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 market growth analysis strategies.
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.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 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.
In the dynamic landscape of automotive technology trends, high speed connectivity services are transforming the driving experience, catering to the needs of vehicle owners and shaping the future of automobile industry. Automobile manufacturing companies are embracing IoT (Internet of Things) and ML (Machine Learning) to develop advanced solutions, while automotive software development plays a crucial role in enabling innovation. The automotive aftermarket is witnessing a surge in demand for mobile technology enabled products, driving the growth of the Automotive Predictive Technology Market. Artificial intelligence (AI) and machine learning (ML) are at the forefront, revolutionizing the industry with intelligent and predictive capabilities.
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.
Get a glance at the market contribution of various segments Download the PDF Sample
The passenger cars segment was the largest segment and valued at USD 142.54 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 are fuelling the demand and driving the automotive technology market growth during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
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 automotive technology market growth in APAC during the forecast period.
The market forecast report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is experiencing a revolution with innovations like remote diagnostics, 3D printing automotive, and advance head-up display. Security is paramount with security systems in automotive and biometric vehicle access systems, while vehicle intelligence systems enhance operational efficiency. Safety features such as night vision, blind spot detection, and lane departure warning systems are becoming standard, aided by electronic systems and mobile apps. Interconnectivity through V2V communication and autonomous driving is reshaping transportation, along with trends like car sharing and GPS navigation. The advent of 5G connectivity and cloud computing supports in-vehicle infotainment, augmented reality, and virtual reality experiences, enabling connected cars and smart sensors. With a focus on EVs, driverless cars, and telematics systems, the industry is advancing towards enhanced driving safety, vehicle reliability, and fault detection for seamless vehicle operation and improved auto industries overall.
Further, the market is witnessing a transformative shift, especially in the industrial vehicles segment, with innovations such as on-board internet services and blind spot detection systems enhancing safety and efficiency. Lane departure warning systems and vehicle-to-vehicle (V2V) communication further augment safety measures, while GPS and voice commands facilitate navigation and control. The integration of natural language processing and in-vehicle infotainment systems offer a seamless user experience, complemented by emerging technologies like augmented reality (AR) and virtual reality (VR). As the automotive industry shifts towards EVs and embraces smart homes integration, cloud services play a pivotal role in managing vehicle downtime, tracking, failure prediction, and anomaly identification through advanced monitoring systems and sensor data analysis for enhanced accident prevention and malfunction detection.
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 203.98 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, 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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.