The automotive IoT market is projected to grow from USD 131.2 billion in 2023 and is projected to reach USD 322.0 billion by 2028; it is expected to grow at a CAGR of 19.7% from 2023 to 2028.
Increasing adoption of connected vehicle technology for reducing fuel wastage along with rising adoption of electric and hybrid vehicles to reduce CO2 emissions is expected to fuel the growth of the automotive IoT market.
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Key strategies adopted by the players in the automotive IoT ecosystem to enhance their product portfolios, increase their market share and expand their presence in the market mainly include new product launches and partnerships and acquisitions.
For instance, in October 2022, NXP Semiconductors announced OrangeBox automotive-grade development platform, which integrates a wide variety of NXP wireless technologies, from broadcast radio, Wi-Fi 6, and Bluetooth to secure car access with Ultra-Wideband (UWB) and Bluetooth Low Energy (BLE), and 802.11p-based V2X. The OrangeBox is a single, security-enhanced, modular development platform that provides a unified interface between the vehicle’s gateway and its wired and wireless technologies. Doing so provides a means for next-generation cars to communicate securely with the world around them.
In January 2023, Harman unveiled Harman Ready on Demand, a software platform for delivering branded audio value, feature enhancement, upgrades, and monetization opportunities in an easy easy-to-use app. An industry-first product, Ready on Demand is the foundation for providing expanded experiences and future upgrades that can be unlocked by the consumer at any time via in-app purchases throughout the life of the vehicle.
NXP Semiconductors operates in 30 countries across Asia Pacific, Europe, the Middle East, Africa, and the Americas. Operations in a wide territory help the company mitigate risks associated with dependence on a specific region and enhance its revenue. It serves a diverse base of original equipment manufacturer (OEM) customers. A diversified customer base enhances its brand image and provides opportunities to add new customers. The company focuses on research and development (R&D). In FY2022, it invested 15.9% of its revenue in R&D. Strong R&D capabilities enable NXP to develop innovative products, which allows it to remain at the forefront of its respective businesses and differentiate its offerings in a highly competitive market.
To grow in the automotive IoT market, the company has adopted the strategy of product launches and partnerships. For instance, in January 2023, NXP Semiconductors announced a new industry-first 28 nm RFCMOS radar one-chip IC family for next-generation ADAS and autonomous driving systems. The new SAF85xx one-chip family combines NXP’s high-performance radar sensing and processing technologies into a single device, offering tier- one companies and OEMs new flexibility in addressing short, medium, and long-range radar applications to serve ever more challenging NCAP safety requirements. Additionally, in January 2022, VinFast and NXP Semiconductors announced their collaboration on VinFast’s next-generation automotive applications. The collaboration supports VinFast’s goal of developing smarter, cleaner, connected electric vehicles. Under this collaboration, VinFast seeks to leverage NXP’s processors, semiconductors, and sensors. VinFast and NXP will engage in the early development phases of new VinFast automotive projects, leveraging NXP’s rich portfolio of system solutions for innovative applications. The company operates in a highly competitive environment, where its competitors range from large multinational enterprises to smaller, more narrowly focused entities that offer niche solutions for the end-users. NXPs competitors include Texas Instruments, Intel Corporation, TOMTOM, Eurotech, Thales, and Bosch, among others. Intense competition in the segment may lead to low market share. The company generates most of its revenue (nearly 61.9%) from Asia Pacific and missing misses revenue-generating opportunities from other countries in the Americas and EMEA.
Harman was acquired by Samsung in 2017, which helped both the companies to increase their competencies in the connected car market. Samsung helped the company with increased innovation through scale, resources, and competencies. For example, Samsung’s 5G antennas enable help in the functioning of Harman -connected car technologies. For Samsung, Harman brought the expertise that is helping it build even closer links with some of the biggest car brands. HARMAN’s relentless pursuit of innovation in the audio and connectivity spaces will help ensure the development of thriving relationships with automakers. To grow in the automotive IoT market, the company has adopted the strategy of product launches and acquisitions. For instance, in January 2023, Harman HARMAN International acquired CAARESYS, a company based in Israel and founded in 2017 . It develops vehicle passenger monitoring systems powered by contactless, low-emission radar. CAARESYS has partnered successfully with leading OEMs and provides a mass production solution for cabin monitoring including vital signs sensing, passenger localization, and Child Presence Detection (CPD). The in-cabin radar sensor and algorithm solution from CAARESYS will strengthen HARMAN’s automotive product offerings, building on the company’s strong consumer-centric Digital Cockpit and ADAS solutions. Additionally, Harman is continuing to develop its Connected Services business with industry-leading OTA (Over the Air) and software servicing products. This will strengthen its competitiveness in the automotive IoT industry in the coming years.
Automotive IoT Market by Offering (Hardware, Software, Services), by Connectivity Form Factor (Embedded, Tethered, Integrated), by Communication Type, by Application (Navigation, Telematics, Infotainment) and Region - Global Forecast to 2028
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