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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 is experiencing significant growth, driven by the rising adoption of Advanced Driver-Assistance Systems (ADAS) features in vehicles. These systems enhance safety and improve the driving experience, making them increasingly popular among consumers. Additionally, there is a wave of developments related to semi-autonomous and autonomous vehicles, which are expected to revolutionize the automotive industry. However, the lack of standard protocols in the automotive sector poses a challenge to market growth. Manufacturers must collaborate to establish common standards to ensure seamless integration of advanced technologies into vehicles and ensure consumer safety and trust. Overall, the market is poised for strong growth, driven by consumer demand for safer and more convenient driving experiences.
The market is witnessing significant growth due to the integration of advanced technologies in luxury vehicles. Autonomous and semi-autonomous vehicles are leading the way in this trend, utilizing technologies such as robotics, computer vision, deep learning, and artificial intelligence (AI) for enhanced driving experiences. These vehicles are not just limited to self-driving capabilities but also offer features like sensor fusion and foresight technology for improved safety. Moreover, mobile technology is playing a pivotal role in the automotive industry, with mobile phone features being integrated into vehicles for connectivity and convenience. The automotive aftermarket is also witnessing a wave in technology adoption, with technology providers offering software development services to vehicle owners.
However, with the increasing integration of technology in vehicles comes the challenge of cybersecurity threats. Connected vehicles are particularly vulnerable to cyber-attacks, making it essential for automakers and technology providers to prioritize cybersecurity measures. Machine learning (ML) and AI are being used to develop advanced security systems to protect against these threats. Overall, the automotive technology trends are focused on enhancing safety, connectivity, and convenience for vehicle owners.
The market research 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 passenger cars segment is estimated to witness significant growth during the forecast period. The global automotive industry is witnessing significant advancements in technology, particularly in the luxury vehicle segment, with the integration of autonomous and semi-autonomous features. Mobile phone features, such as voice commands and natural language processing, are being incorporated into in-vehicle infotainment (IVI) systems. Technology providers are focusing on remote diagnostics, mobile apps, and interconnectivity to enhance the automotive aftermarket experience. Advancements in electronic systems include 3D printing automotive, augmented reality (AR), and virtual reality (VR) for enhanced user experience. Vehicle intelligence systems, such as night vision, machine learning (ML), robotics, computer vision, and deep learning, are being integrated to improve safety and efficiency.
Connected cars, electric vehicles (EVs), and driverless cars are becoming increasingly popular, with 5G connectivity and smart sensors enabling real-time data exchange and analysis. The automotive software development industry is leveraging artificial intelligence (AI) and cloud computing to optimize vehicle performance and provide personalized experiences for vehicle owners. The Asia Pacific region is leading the way in passenger car sales and production, driven by increasing disposable income and a growing middle class population. The automotive industry is also exploring opportunities in car sharing and smart homes, further enhancing the role of technology in our daily lives.
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The passenger cars segment was valued at USD 142.54 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The market in APAC is experiencing significant growth due to the integration of advanced technologies such as Machine Learning (ML), ADAS, cybersecurity threats, and foresight technology. Connected vehicles and telematics systems are becoming increasingly popular, with China, Japan, South Korea, and India leading the charge. These countries are prioritizing driving safety and vehicle reliability through the adoption of sensor fusion and anomaly identification for accidents prevention and fault detection. Early warning systems for malfunctions and monitoring of vehicle components are essential for minimizing vehicle downtime. The rise of ride-hailing services in India and Japan is further fueling the demand for automotive technologies, as companies focus on improving vehicle operation and vehicle and driver safety. Sensor data analysis is a critical component of these advancements, enabling auto industries to provide early warnings and enhance overall vehicle performance.
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.
Rising adoption of ADAS features in vehicles is the key driver of the market. The market is witnessing significant growth due to the increasing adoption of advanced driver assistance systems (ADAS) in luxury vehicles and the development of autonomous and semi-autonomous vehicles. The integration of mobile phone features, such as voice commands and mobile apps, is revolutionizing the automotive aftermarket, enabling technology providers to offer remote diagnostics and vehicle intelligence systems. Innovations in 3D printing automotive, advance head-up displays, night vision, and electronic systems are enhancing the driving experience for vehicle owners. The application of machine learning (ML), robotics, computer vision, deep learning, artificial intelligence (AI), natural language processing, and cloud computing in automotive software development is enabling the development of autonomous driving features, such as car sharing, autonomous driving, and self-driving cars.
The integration of sensors, 5G connectivity, augmented reality (AR), and virtual reality (VR) in connected cars and electric vehicles (EVs) is transforming the automotive industry, offering a seamless and intelligent driving experience. Government regulations, such as mandatory installation of safety features like co-driver airbags and e-call systems, are further fueling the growth of the market.
Increasing developments in semi-autonomous and autonomous vehicles is the upcoming trend in the market. Autonomous and semi-autonomous vehicles, also referred to as self-driving cars, are revolutionizing the automotive industry by integrating advanced technologies, including computers, the internet, smartphones, and sensors, to operate with minimal human intervention. This merging of technology and automobiles is propelling the industry forward, with rapid advancements in sensor-processing technologies, high-definition mapping, and adaptive algorithms driving production capacity expansion. The deployment of infrastructure-to-vehicle and vehicle-to-vehicle communication technologies is further enhancing vehicle automation. These innovations are expected to reduce vehicle operating costs, increase travel convenience and comfort, and encourage longer-distance commutes. In addition, the integration of mobile phone features, such as mobile apps, voice commands, and artificial intelligence (AI), is transforming the automotive aftermarket, enabling remote diagnostics and vehicle intelligence systems.
Moreover, technology providers are exploring the use of machine learning (ML), robotics, computer vision, deep learning, and natural language processing to enhance vehicle functionality. The integration of 5G connectivity, augmented reality (AR), and virtual reality (VR) is also expected to revolutionize in-vehicle infotainment (IVI) systems. The emergence of car sharing and the increasing popularity of electric vehicles (EVs) and driverless cars are further driving the growth of the market. Smart sensors and self-driving cars are also expected to create new opportunities for cloud services and smart homes.
The lack of standard protocols in the automotive sector is a key challenge affecting the market growth. In the dynamic automotive industry, luxury vehicles continue to integrate advanced technologies such as autonomous and semi-autonomous capabilities, mobile phone features, and vehicle intelligence systems. Technology providers are investing in remote diagnostics, 3D printing automotive, and machine learning (ML) for automotive software development. Autonomous driving features like voice commands, artificial intelligence (AI), natural language processing, and 5G connectivity are becoming increasingly popular. Car sharing, augmented reality (AR), and virtual reality (VR) are also gaining traction in the market. However, the lack of standardized protocols poses a significant challenge. Governmental regulations impact the production of automobiles, regulating engineer and designer creativity to prioritize safety, security, and environmental impact.
Adapting to these changing regulations in each country necessitates financial investments for manufacturers to set up different assembly units. Key technologies include advance head-up displays, night vision, electronic systems, sensors, and self-driving cars. Additionally, electric vehicles (EVs) and driverless cars are shaping the future of the automotive sector, with smart sensors, cloud services, and smart homes enhancing the overall driving experience.
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.
Advanced Micro Devices Inc. - The company offers ADAS, automated driving, in-vehicle experience, electrificiation and networking under automotive technology, under its subsidiary Xilinx Inc.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 market is experiencing rapid advancements, with luxury vehicles leading the charge in integrating the latest technologies. Autonomous and semi-autonomous vehicles are becoming increasingly common, utilizing advanced sensor systems, machine learning, robotics, computer vision, and deep learning for navigation and safety. Mobile phone features, such as voice commands, mobile apps, and interconnectivity, are merging with in-vehicle infotainment (IVI) systems. Technology providers are also focusing on remote diagnostics, enabling vehicle owners to monitor and maintain their vehicles using AI and cloud computing. Additionally, 5G connectivity, augmented reality (AR), and virtual reality (VR) are transforming the driving experience, while car sharing and autonomous driving continue to gain popularity.
EVs and driverless cars are also becoming more prevalent, with smart sensors and self-driving technology enabling seamless integration with smart homes and cloud services. Overall, the market is poised for significant growth, with AI, ML, robotics, and mobile technology playing key roles in shaping the future of the industry.
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, market forecast, 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 market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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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