$166bn Market for connected vehicles by 2025
94% Fatal crashes avoided by 2030 thanks to autonomous vehicles
$500bn Market for micromobility by 2030
Overview
Applications for connected cars need to have the most dependable connectivity and exact positioning available.
* Accurate satellite positioning ensured via Qualcomm’s latest IZat
* MIMO technology greatly reduces errors and boosts data speeds
* Wide temperature range ensures durability in harsh environments
* Backward network compatibility ensures coverage in remote areas
The automobile sector is one of the IoT's fastest-growing sectors and will continue to do so over the coming ten years. The potential of linked automobiles is enormous: just a few use cases include enhanced traffic management, smart navigation, crime prevention, and passenger entertainment. Cellular vehicle-to-everything (C-V2X) technology will become more widely used in daily life as smart cities develop over the upcoming years. This technology enables vehicles to communicate in complex ways with pedestrians, buildings, the roadways, and each other, in addition to other things.
By 2025, practically all new cars will be connected; the consumer market alone will produce 300 million new IoT connections. Through increased efficiency per mile driven, made possible by improved driver assistance systems, this will result in a yearly CO2 reduction of 400,000 metric tonnes. Then, by 2030, it's anticipated that a majority (94%) of fatal collisions in industrialised markets will no longer be caused by human error.
The market for connected automobiles as a whole is predicted to more than treble in size between 2020 and 2025, reaching a value of $166 billion, creating a huge commercial potential. The market for connected automotive sensors alone will then increase from 2025 to 2027 at a CAGR of over 9%, reaching $16.7 billion. And a sizable service sector, expected to be worth $81 billion across Europe, China, and the USA by the end of this decade, is already emerging around this transport revolution. Therefore, as this industry grows, now is the time to start planning for market entry or expansion.
Why the automotive industry is important
- Links to other sectors – the automotive industry has an important multiplier effect in the economy. It is important for upstream industries such as steel, chemicals, and textiles, as well as downstream industries such as ICT, repair, and mobility services
- Employment - around 13.8 million people work in the EU automotive sector. Manufacturing (direct and indirect) accounts for 3.5 million jobs, sales and maintenance for 4.5 million, and transport for 5.1 million
- Economy - the turnover generated by the automotive industry represents over 7 % of EU GDP
80% of the growth in the sector is expected to occur outside the EU. The EU's efforts should focus on concluding and enforcing preferential trade and investment agreements. These will make it easier for European companies to access third markets and continue benefiting from economies of scale.
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