The global automotive predictive technology market size was valued at USD 58 billion in 2021. It is estimated to reach an expected value of USD 120 billion by 2030, growing at a CAGR of 8.4% during the forecast period (2022-2030).
predictive features are used by autonomous vehicles and self-driving technology to warn drivers about potential hazards and generate other driving alerts. Several significant OEMs' development of autonomous vehicles is anticipated to serve as a market-driving force.
Several vehicle makers have delayed the introduction of new vehicles due to the severe chip shortage, which has occurred despite a minor increase in recent vehicle sales globally due to supply chain disruption. The market growth is due to the rising trend for technologically advanced features in vehicles, such as artificial intelligence and machine learning to improve safety features like ADAS and predictive maintenance to decrease vehicle downtime and increase vehicle performance affordably.
|Market Size||USD 120 billion by 2030|
|Fastest Growing Market||Europe|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Due to the rapid development of technology in the automotive sector, consumers are willing to spend more money on the newest innovations that improve driving comfort and passenger and driver safety. The prediction capacities of vehicles in the automobile sector are strongly impacted by machine learning and predictive technologies. By notifying the owner of any problems with the vehicle, these technologies improve the performance of the vehicles and are cost-effective because they decrease vehicle downtime. To draw in more customers by enhancing its users' safety features and driving experience, several key market players are substantially investing in research and development and releasing the newest products. The passenger car segment is anticipated to expand at a healthy rate throughout the projected period due to the trends and advancements stated above.
The demand for advanced driver assistance systems (ADAS) is expected to rise significantly during the forecast period, fueled mainly by regulatory reforms in safety applications that help protect drivers and reduce accidents. Additionally, growing preface and awareness of potential life-saving and other comfort-based features also supported the growth of ADAS and other advanced systems in automotive, propelling the demand for wiring harness upgrades toward more sophisticated and higher-speed connections. Governments and automakers are creating and promoting safe driving technologies, mainly passenger cars. Additionally, the majority of those technologies are anticipated to become crucial.
The rapid deployment of cameras, RADAR, and other sensors in conditionally automated cars is anticipated to fuel the demand for wiring harnesses during the projected period. With the growing concerns about driver and passenger safety and pedestrian safety, automobile manufacturers are becoming obligated to equip even their entry-level vehicles with numerous safety and driver-assistance systems, even in the smaller market. For instance, In 2019, Peugeot launched its 3008 SUV Plus and 5008 SUV Plus in Malaysia. The top variants of these vehicles are fitted with advanced safety features, such as speed limit information, driver attention alert, active lane-keeping assistance, and blind-spot monitoring assistance. Based on the points mentioned above, it is anticipated that the market for wiring harnesses is likely to grow significantly during the forecast period.
Protecting a semi or fully autonomous vehicle from hackers is of prime concern to federal and state governments, manufacturers, and service providers. Such disruptions could happen, as was shown by the expert hacking of a conventional vehicle. Hackers could exploit more than a dozen portals, including entry points that appeared harmless, such as the airbag, the lighting system, and the tire pressure monitoring system, to get into even the electronic systems of a standard vehicle.
Vehicle makers formed the Automotive Information Sharing and Analysis Center (Auto-ISAC) to address cybersecurity issues, and the organization published a set of cybersecurity guidelines in 2016. The Auto-ISAC is designated under DOT's autonomous vehicle policy as a central clearinghouse for businesses to communicate with others in the automotive industry about any cybersecurity incidents, threats, or violations.
Apart from hackers, many government and private entities would like to access vehicle data, such as vehicle and component manufacturers, technology and sensors suppliers, urban planners, insurance companies, law enforcement, and first responders (in case of an accident). Currently, no laws prohibit manufacturers and software providers from reselling individual vehicles and drivers' data to third parties. Such factors hamper the market growth.
Several research activities, partnerships, and collaborations by significant players and OEMs were carried out to develop the automotive predictive technologies in autonomous vehicles to meet various demands of consumers anticipated to provide lucrative opportunities for players in the market. For instance, In August 2021, Iteris, Inc., and Wejo announced that they had agreed to deliver enhanced connected vehicle data content to Iteris' public-sector and commercial customers throughout North America.
Connected vehicle data characteristics will combine with additional layers of real-time traffic and weather information, incremental predictive inputs, and artificial intelligence capabilities from Iteris' Clear Mobility Cloud. The combination will enable new insights in areas such as commuter information, traffic mitigation, road network management, and studying road utilization and owing to developments in autonomous and connected vehicles and advancements in technologies like ML, AI in automotive predictive technologies likely to create new opportunities for players in the market over the forecast period.
By region, the global automotive predictive technology market is segmented into North America, Europe, Asia Pacific, and the Rest of the World.
Asia Pacific accounted for the largest market share and is estimated to grow at a CAGR of 8.4% during the forecast period. More than 20.17 million passenger cars were sold in China in 2020, a 5.89% decrease from the previous year's sales. China is one of the world's major markets for automobiles. Despite the pandemic, China is still one of the world's top auto markets, providing a fantastic chance for predictive technology to establish itself there. Along with electric transportation, the Chinese government is putting a lot of emphasis on driverless vehicles. The government has announced the first national standard for autonomous vehicles will come into force in March 2022. Due to factors such as mergers, partnerships, etc., to promote autonomous driving, the demand for automotive predictive technology will rise in the Chinese automotive market.
Europe is the second largest region. It is estimated to reach an expected value of USD 30 billion by 2030, growing at a CAGR of 8.2% during the forecast period. The German automotive industry is regarded as the leader in the world, with housing industry giants such as Volkswagen, Daimler-Mercedes, BMW, Porsche, etc. The automotive industry in the country accounts for much of the R&D spending in the country, with a share of over 35%. Although the automotive predictive technology market is still nascent, many OEMs are spending heavily on this technology to attract customers and gain market shares. German automobile manufacturers are launching new products equipped with safety features based on predictive technology. For instance, Volkswagen Taigun 2021 has been introduced with the latest safety features, which include electronic stability control, multi-collision brakes, hill hold control, etc. Owing to these factors, it is expected that the automotive predictive technology market in the country will grow at a healthy rate during the forecast period.
North America is the third largest region. The demand for predictive technology is becoming popular gradually, as vehicle manufacturers are producing vehicles with advanced technology by implementing artificial intelligence and machine learning to predict the miss happenings, failures, and various maintenance related to vehicles. Over the last three years, there has been a noticeable increase in demand for self-driving cars in the North American region. The cooperation between the businesses in the US provides strong support for the market. Customers for automobiles such as passenger cars are adopting the latest technologies to be free from the stress of checking everything in the vehicle; moreover, on the safe side also, the adoption of predictive technology in vehicles is becoming popular gradually as it keeps the consumer safe from the upcoming obstacle and reduces fatality rate. Such factors will drive the automotive predictive technology market in the United States.
The global automotive predictive technology market is segmented by vehicle type, end-user type, and hardware type.
By vehicle type, the global automotive predictive technology market is segmented into passenger cars and commercial vehicles. The commercial vehicles segment accounted for the largest market share and is estimated to grow at a CAGR of 8.5% during the forecast period. Several major players in the automotive market are including predictive technologies in their vehicles to serve their customers better by enhancing security and safety features. For instance, In November 2020, Volvo cars announced that its vehicles in the United States would include connected safety technology to improve traffic safety in the country. The company entered a new partnership with Waycare Technologies, enabling data from Volvo's Hazard Light Alert and Slippery Road Alert to be anonymously shared with transportation municipalities and the popular Waze navigation app. Owing to the trends mentioned above and developments, the passenger car segment is expected to grow at a healthy rate during the forecast period.
The passenger cars segment is the second largest. The predictive technology for commercial vehicles has been helping not only the owners and fleet operators but also the insurance companies to analyze data and enhance the operational efficiency of the vehicles, subsequently decreasing the environmental impact. In conjunction with data analytics and the cloud, IoT can also cut accidents and injuries by 25%, resulting in a 15% boost in vehicle economy. Additionally, fewer accidents result in 15% less material being lost on the road, which lowers the cost of logistics management.
Several players in the market are launching the latest technology solutions for commercial vehicles and their users to enhance operational efficiency and maximize profits. Owing to the aforementioned trends and developments, the commercial vehicle segment is expected to grow healthy during the forecast period.
By end-user type, the global automotive predictive technology market is segmented into fleet owners, insurers, and other end-users. The fleet owners segment accounted for the largest market share and is estimated to grow at a CAGR of 8.4% during the forecast period. Predictive technology solutions provide many benefits for the fleet owners, such as enhancing the operational efficiency of the vehicle by monitoring all the essential parameters and intimating the operator to take care of issues to be taken care of before the complete failure of the system, which reduces the vehicle downtime and enhances the profitability. These systems also inform about the driving behavior and reduce the chances of road accidents by alerting the driver on time. Several startups and major players in the market are launching the latest technology solutions for fleet owners to reduce the downtime of vehicles and enhance profitability. Owing to the earlier trends and developments, the fleet owners segment is expected to grow healthy during the forecast period.
By hardware type, the global automotive predictive technology market is segmented into ADAS, onboard diagnosis, and other hardware types. The ADAS segment accounted for the largest market share and is estimated to grow at a CAGR of 9.7% during the forecast period. The automotive industry has recently been driving research and development for bettering ADAS systems. As a result, lane departure warning systems, cameras, RADAR, and other sensors are in high demand and are being integrated into vehicles at a rapid rate. This led to additional advancements in advanced driving aid systems. This is anticipated to fuel the market under study.