The Internet of Things (IoT) is going to grow a lot from 2023 to 2032, says a recent report. The market was worth $102.3 billion in 2022 and experts expect it to reach a huge $760.3 billion by 2032. That is a rate of 22.6% each year.
The big reasons for this impressive growth are more people wanting connected car services, a strong emphasis on making roads safer and the increase in services using data and making money from it. Even though there are challenges like keeping data private, worries about security, limits in infrastructure and issues with things working together smoothly.
In terms of communication dynamics, the vehicle-to-infrastructure segment dominated the market in 2022, securing almost half of the market share. It is anticipated to maintain this lead, offering security applications designed to prevent accidents. However, the part where vehicles talk to each other is expected to grow a lot, with a high rate of 24.4% from 2023 to 2032.
When examining application insights, navigation claimed the majority share in 2022 due to the growing adoption of connected vehicles. However, the telematics segment is poised to witness the highest CAGR of 25.8% from 2023 to 2032, particularly with its integration into electric vehicles (EVs).
Connectivity plays a crucial role, with tethered connectivity accounting for the largest share in 2022, enabling vehicles to access the internet through connected devices. Simultaneously, the embedded segment is anticipated to register the highest CAGR of 24.2%, offering a comprehensive suite of services, including real-time traffic updates, remote vehicle control, and emergency assistance.
Regionally, North America took the lead in 2022, contributing over two-fifths of the global IoT in the automotive market revenue. This dominance is expected to persist, driven by the region’s increasing adoption of connected technologies. However, the Latin America, Middle East, and Africa (LAMEA) region are poised to experience the fastest CAGR of 25.4% from 2023 to 2032, fueled by growing connectivity and government initiatives promoting smart mobility.