Editor's Pick 19-06-2024 11:02 17 Views

Connected vehicle technologies market in APAC poised to grow at 4% CAGR during 2023-2028

The proliferation of internet connectivity and deployment of 5G cellular technology in major countries such as China, India, South Korea, and Japan are expected to drive the demand for new connectivity features in cars in the Asia-Pacific (APAC) region.

As a result, the APAC connected vehicle technologies market is projected to grow at a compound annual growth rate (CAGR) of more than 4% during 2023-2028, forecasts GlobalData, a leading data and analytics company.

GlobalData’s latest report, “Global Sector Overview & Forecast: Connected Vehicle Technologies – March 2024,” reveals that APAC held a significant share of the global automotive connected technologies market in 2023, with Asian countries leading in the adoption of OE smartphone and embedded connectivity units.

The APAC market is set to grow from 28.5 million units in 2023 to 34.6 million units in 2028.

Gorantala Sravan Kumar, Associate Project Manager, Automotive at GlobalData, comments: “Consumers, especially younger generations, are hooked onto their smartphones and gadgets and want to be connected all the time. Their reliance on the Internet and gadgets also seeped into their vehicles and want to stay connected even on the road.”

Concurrently, advancements in technology are being utilized to enhance passenger safety and boost the vehicles’ security features. Many startups have developed specialized chipsets that enable fast communication via 5G and decentralized networks.

Sravan Kumar explains: “This makes it possible for vehicles to utilize nearly real-time information to improve performance and safety. Automakers are actively looking at these developments and collaborating with such startups or developing in-house technologies to incorporate such features in their offerings.”

The middle and affluent classes are growing rapidly across various Asian countries, leading to an increased demand for smart and connected vehicles.

Sravan Kumar continues: “Consumers are now seeking features such as in-car infotainment, connected services, and advanced driving assistance systems (ADAS), which have accelerated the development of connected vehicle technologies. Asia-Pacific nations have made significant investments in upgrading their digital infrastructure, including the deployment of 5G networks. These high-speed networks are crucial in providing reliable and fast communication between vehicles and the surrounding infrastructure.”

“Developing nations are building new urban areas to accommodate their growing populations. To make transport networks and traffic management more efficient, many of these innovative metropolitan areas are being developed as “smart cities” that integrate connected technology across various levels of infrastructure.”

Sravan Kumar concludes: “As cars become more advanced, consumers are quickly coming to expect seamless connectivity while driving. This means that automakers and suppliers must keep up with the demand for cutting-edge technology to offer a smooth user experience. This is becoming increasingly important to attract younger consumers, who have grown up with networking technology and are more likely to embrace it. To ensure seamless connectivity, most customers now expect their cars to come equipped with features such as MirrorLink, Android Auto, or Apple CarPlay. These smartphone integration platforms are crucial enablers of connected car technology.”

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