The global vehicle sales are witnessing remarkable growth over the years. According to the Ministry of International Trade and Industry, global sales grew by 2% i.e., from 81.5 million units to 84.6 million units of automobiles in 2016–2017. This surge is a result of the increasing popularity of green cars and automobiles across the globe. Some prominent regions such as China, India, Japan, South Korea, etc are opportunistic markets for predictive technology.
City populations across the globe are booming; about half of the world’s population, i.e. close to 3.7 billion people reside in urban areas. This number is estimated to surge by 66% by 2050. (Source: World Economic Forum). As urban consumers have a penchant for sophistication and digitalization in how they work, live, buy, and communicate, they eventually prefer premium mobility. Thus, managing the ever-increasing urban environments compelled notable automotive players to adopt such versatile technologies.
The global economy is dramatically transforming into a digital marketplace with the advent of technologies such as big data and analytics, cloud computing, sensors, and the internet of things (IoT) in sectors such as e-commerce, mobility and broadband connectivity, and social media. According to the World Economic Forum, there will be more than 38.1 billion connected devices, as a consequence, the crucial challenge of the automobile industry is to adopt and sustain such an environment with connected devices complementing the predictive vehicle technology.
| Study Period | 2020-2032 | CAGR | 9.7% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | North America | Fastest Growing Market | Europe |
The increasing collision rates in countries such as the U.S. and Canada indicates the pressing need for safety measures such as predictive vehicle technology in the automobile sector. According to the National Highway Traffic Safety Administration (NHTSA), in 2017, roughly 37,133 people were subjected to motor fatalities in the U.S. Similarly, the Government of Canada registered close to 1,679 motor fatalities in 2017. The pro-active alert system offered by predictive vehicle technology is an ideal solution to prevent motor fatalities as it prompts beforehand impending on-road dangers such as sudden and uncontrollable turns by heavy vehicles and careless overtaking. Like any other region, North America is eagerly following the motive of reshaping its automotive sector that fits the requisite safety and security parameters. Several regulations drafted by the U.S. and Canadian regulatory bodies underpin this motive, thus encouraging the adoption of Advanced Driver-Assistance Systems (ADAS) and associated safety modules.
Europe is considered to have a vast automotive sector on account of the presence of several key manufacturers. Germany, France, Denmark, and Italy are the automotive leaders present in Europe. According to the European Automobile Manufacturers Association (ACEA), automobile manufacturers operate close to 309 vehicle assembly and production plants spanning 27 countries in Europe. These manufacturers not only supply for the domestic market but also actively export across the globe. Several countries in Europe consider predictive technologies as a mandate and an integral part of the vehicle. Therefore, the broad automotive sector in tandem with the awareness regarding predictive technology is accelerating the Europe predictive technology market.
Countries such as China, Japan, Australia, India, and others are determined to develop their industrial verticals, such as automotive, to sustain global standards and competitiveness. As per the global scenario, Europe and North America are rapidly adopting measures to effectuate the idea of autonomous vehicles or driverless mobility. As a consequence, well-established sectors such as China and Japan are striving toward meeting the global benchmark. According to the International Trade Administration (ITA), China drafted “The Connected Vehicle Industry Development Plan 2020” that demands for at least 50% of the vehicles to be equipped with partial assistance (PA), driver assistance (DA), or conditional assistance (CA), and to attain this demand, the extensive deployment of predictive vehicle technology is imperative. Also, the emergence of the “Action Plan for Realizing Automated Driving” drafted by the “Panel on Business Strategies on Automated Driving” in China for devising an ideal future vision for autonomous driving provides untapped prospects for the predictive vehicle technology to grow as it involves advanced driver-assistance system.
Brazil, the UAE, Argentina, and South Africa that are emerging in the automotive sector. The United Arab Emirates (UAE), Saudi Arabia, and Abu Dhabi are subsequently inclining toward a service-oriented model with a focus on customer safety and experience. Brazil endured a consequent recession of four years until 2016 in its automotive sector; however, in 2017, the country resumed growth. According to the Presidency of the Republic of Brazil, in 2017, automobile production rose by 25.2% producing about 2.7 million vehicles with a 9.2% leap in sales. In light of these digits, the predictive vehicle technology market is foreseen to experience sizable growth in the LAMEA region.
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Cloud technology allows vehicle engineers to deploy smaller center console with less hardware to be installed under the dash and outsource data tasks to a remote server. This results in slimmer control boards and better legroom for passengers. Cloud deployment model facilitates the reduction of energy footprints, expensive upgrades, system changes, thus bringing ease in the integration of predictive vehicle technology.
The critical need for installing an active safety system in cars is becoming increasingly prevalent. Passenger safety is an indispensable requirement in the automotive sector. Various manufacturers have realized the paramountcy of passenger safety; thus, they are extensively integrating safety modules to deck out their offerings. Pro-active alerts, one of the vital aspects of predictive vehicle technology, aims at preventing accidents by providing advanced warnings and steering assistance to the driver. Some of the standard active safety systems offered under predictive vehicle technology are Head-Up Display (HUD), Anti-Lock Braking Systems (ABS), Electronic Stability Control (ESC), Tire Pressure Monitoring System (TPMS), Lane Departure Warning System (LDWS), Adaptive Cruise Control (ACC), Driver Monitoring System (DMS), Blind Spot Detection (BSD) and Night Vision System (NVS).
The burgeoning production of passenger vehicles in the regions across the globe offers several opportunities for the predictive vehicle technology market. The below table shows the production of passenger vehicles in the fourth quarter of 2018 for regions such as North America, Europe, South America, Asia, and Africa. The increasing number of accidents of passenger vehicles among these regions is anticipated to fuel the deployment of predictive vehicle technology in the future automotive models to ensure passenger safety and reduce the fatality rates. According to the Organization for Economic Co-operation and Development (OECD), in 2017, India accounted for about 147,913 deaths in road accidents. Such a scenario is foreseen to trigger the adoption rate of vehicle security measures, thus creating a promising market for predictive vehicle technology.
Unlike all other industries that had adverse effects of the Covid-19 pandemic, the IR camera market has seen significant growth in the said period. The growth was due to the increased use of thermal imaging devices to scan for elevated body temperatures of people during the Covid times.
In mid-2020, Infrared cameras Inc. (ICI) announced that the thermal imaging system that utilizes IR cameras is the best and safer way to get highly accurate data regarding surveillance and the temperature checks of a person for elevated body temperature. This is the only market segment that has been on the positive quadrant of the graph, even in the toughest time for the entire world. The major use of these IR cameras was made in the medical and healthcare industry during the Covid times, which contributed to a significant revenue generation.
