The European IoT Automotive Market projected to grow at a CAGR of 26.62%, with an estimated revenue of $30.09 bn by 2023

IOT News

The_European_IoT_Automotive_Market_projected_to_grow_at_a_CAGR_of_26.62_with_an_estimated_revenue_of_30.09_bn_by_2023 The European IoT Automotive Market projected to grow at a CAGR of 26.62%, with an estimated revenue of $30.09 bn by 2023According to the “Europe IoT in Automotive Market (2018-2023)” report, the Europe IoT in the automotive market is projected to grow at a CAGR (compound annual growth rate) of 26.62% leading to an estimated revenue of $30.09 billion by 2023.

Increased awareness of fuel efficiency & road safety and a strong economic backbone are driving the adoption of IoT in the Europe automotive industry as it allows to monitor the driver’s behavior and provides real-time updates.

European countries like France, Germany, Italy, Luxembourg, and Sweden have high IoT penetration in general and it is expected to drive the adoption of the IoT technology in their respective automotive industries as well.

The adoption of IoT in Europe is being fueled by the focus of major automotive companies in the region as well as support from the government. EU has mandated the use of IoT enabled e-Call which automatically contacts the nearest accident emergency center in case of a collision.

Honda is deploying IoT solutions from Bright Box and Cisco Jasper across all European countries to deliver the MyHonda Connected Car platform to provide a variety of connected services that significantly increase driver safety and enable new experiences for drivers.

Key Growth Factors

A rise in demand for intelligent management of fleet operations is expected to drive the IoT in the automotive market in Europe to help comply with environmental regulations and reduce CO2 emissions by managing employee driving style.

The Autopilot project which is conducted by ERTICO and funded by the European Union (EU) is working on combining the concept of IoT with automotive. The project started in JAN 2017 and the work is foreseen until the end of 2019.

Threats

The IoT enabled connected car value chain is quite complex as different suppliers and manufacturers from different industries are involved in this business trend. Thus, cooperation between them is a pre-requisite for companies to achieve the full potential of this trend which might be a challenge in an already well developed automotive market in Europe.