The expansion of internet access and the rollout of 5G technology in major countries like China, India, South Korea, and Japan are expected to significantly boost the demand for advanced connectivity features in vehicles across the Asia-Pacific (APAC) region.
As a result, the APAC connected vehicle technologies market is forecasted to grow at a compound annual growth rate (CAGR) of over 4% between 2023 and 2028, according to GlobalData, a data and analytics firm.
The latest report from GlobalData, “Global Sector Overview & Forecast: Connected Vehicle Technologies – March 2024,” indicates that in 2023, APAC held a substantial share of the global market for automotive connected technologies. Countries in Asia are leading in the adoption of original equipment (OE) smartphone and embedded connectivity units.
Gorantala Sravan Kumar, an associate project manager for Automotive at GlobalData, stated, “Consumers, particularly the younger generation, are heavily reliant on their smartphones and gadgets, and this dependence extends to their vehicles. They desire constant connectivity, even while on the move.”
Simultaneously, technological advancements are being leveraged to enhance passenger safety and improve vehicle security features. Numerous startups are developing specialized chipsets that facilitate rapid communication through 5G and decentralized networks.
Kumar added, “This allows vehicles to utilize near real-time data to enhance performance and safety. Automakers are keenly observing these developments and are either collaborating with startups or developing in-house technologies to integrate such features into their vehicles.”
The expanding middle and affluent classes across various Asian nations are driving the demand for smart and connected vehicles.
Kumar noted, “Consumers now seek features such as in-car infotainment, connected services, and advanced driver assistance systems (ADAS), which are propelling the development of connected vehicle technologies. APAC countries have invested significantly in upgrading their digital infrastructure, including deploying 5G networks. These high-speed networks are essential for providing reliable and fast communication between vehicles and surrounding infrastructure.”
In developing countries, new urban areas are being constructed to accommodate growing populations. To enhance transportation networks and traffic management, many of these innovative cities are being designed as “smart cities,” integrating connected technology into various infrastructure levels.
Kumar highlighted, “As vehicles become more technologically advanced, consumers increasingly expect seamless connectivity while driving. Automakers and suppliers must meet the demand for state-of-the-art technology to deliver a smooth user experience, particularly to attract younger consumers who have grown up with networking technology and are more inclined to adopt it. To ensure seamless connectivity, most consumers now expect their vehicles to be equipped with features like MirrorLink, Android Auto, or Apple CarPlay. These smartphone integration platforms are vital enablers of connected car technology.”
“APAC Connected Vehicle Technologies Market to Grow at 4% CAGR from 2023-2028” was originally published by Just Auto, a brand owned by GlobalData.
Source: Finance.yahoo
