The Internet of Things is reshaping the automotive market, kicking off a push to come up with innovative value-added services and applications to improve driving experience.
Real-time traffic alerts, automated driving and governments’ broad interest in telematics devices are stimulating the automotive IoT market, with a potential reach of USD 82.79 billion by 2022, at a CAGR of 26.75%.
In-vehicle communication, which helps users take the best route by accurately analyzing geographical location, weather conditions, and traffic and travel times through IoT sensors and GPS, is a priority and holds the largest market share. Following the success and ubiquity of cloud-based entertainment and high-speed connectivity, infotainment applications are forecast to be the top priority in the automotive market in the next six years.
Although countries such as Singapore, the Netherlands and South Korea have shown interest in IoT integration by consolidating smart cities and infrastructures, US, Mexico and Canada will drive growth of the automotive IoT ecosystem.
Connecting drivers with their vehicles will help manufacturers optimize information based on their customers’ behavior. The impressive amounts of collected data about vehicle tracking, entertainment preferences and performance will create new business opportunities for the cars of the future.