Market Trends of Asia Pacific Internet Of Cars Industry
New Technologies like 5G, Big Data Solutions, and AI to Boost the Demand for Internet-Enabled Cars
- The connected cars and related IoT features in automobiles are gaining popularity among the audience. Brands are adding new features to existing and expected models for enhanced user experience, convenience, and safety. But this also demands better connectivity for these features to perform as they desire. Hence, Asia Pacific, as a growing technology hub, is also witnessing telecom providers offering network and integrated solutions.
- For instance, Vodafone Idea provides Vi Smart Mobility in India, offering fully-integrated, connected car solutions for automotive OEMs. The company continues to provide the same in the region. The connected features in cars require fast and consistent internet. The introduction of 5G will bolster the overall growth of the market.
- The expected number of subscriptions will likely encourage the network providers to upgrade the existing facilities and infrastructure to facilitate the demand for 5G, IoT systems, both protective and regularly functioning, to receive the necessary network support. The high-speed internet would allow faster response time, increasing the effectiveness of in-car internet-driven features.
- According to the Mobile Economy 2023 report by the GSMA, 5G adoption will grow across Asia-Pacific, with more than 93% Percentage 5G connections, by 2030. This also encourages the automakers to install the existing and upcoming vehicles with compatible 5G bandwidths in respective markets for future-ready products.
- The increasing use of sensors and data technologies makes AI essential for quick and precise decision-making. Some automobiles use AI for Level 3 autonomous driving, but for the automotive industry to reach Level 5, significant enhancements must be made to the cars and infrastructure in Asia Pacific countries.
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China Will Hold A Significant Market Share
- Owing to the increase in the connectivity features of the latest car models, China is likely to lead the market in the Asia-Pacific. As China's domestic market grows, In addition to securing industry investment, a dedicated Industrial Strategy and support from the Central Government, it will shape future connected vehicle sectors with higher technical advantages in ICT, data processing and platform services.
- The automotive market is a significant and rapidly growing segment within the automotive industry. With the increasing adoption of connected technologies and the (IoT), the automotive sector in region has witnessed significant advancements and opportunities for innovation.
- According to CAAM, In August 2023, approximately 2.3 million passenger cars and 310,000 commercial vehicles were sold in China, an increase compared to the previous month.
- The increasing adoption of the electric vehicles aross China indicates people's readiness to adopt new technologies. As most of the new-age electric vehicles feature connected car tech, including cloud-powered features, the rising sale of electric vehicles signifies the increasing interaction of the Chinese population with these features and technologies.
- In developing country like China, The demand for connected cars is likely to be driven by the growth of communication and information technology infrastructure, such as 5G or 4G LTE. In addition, due to the increase in safety regulations for security, protection and authorisation, the growth market will be stimulated by favourable government policies.
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