Automotive Internet of Things (IoT) market, which is valued at $16.32 billion in 2015, could grow at a compound annual growth rate of 25.5 percent to reach $80.37 billion in 2022. The key players in this market included Apple Inc. (NASDAQ:AAPL), Ford Motor Company (NYSE:F), General Motors Company (NYSE:GM), Microsoft Corporation (NASDAQ:MSFT), Intel Corporation (NASDAQ:INTC), International Business Machines Corp. (NYSE:IBM), Alphabet Inc (NASDAQ)GOOGL) and Cisco Systems, Inc. (NASDAQ:CSCO). There are other players from around the world.
According to wiseguysreports.Com, IoT will grow due to the importance given to connectivity in vehicles and forms a key factor for driving growth in the upcoming years. Also, automakers and telecom companies have increased their spending on R&D. These sectors are also increasing number of telematics mandates in different countries. Aside from this, advanced driver assistance systems are another factor that will favor IoT in automotive division.
The research firm thinks information is expected to enjoy a greater market during the period of forecast through application. In the United States, North America enjoys the biggest share in automotive IoT market due to its big revenue contribution.
However, as far as growth rate is concerned, Asia-Pacific is predicted to record considerable CAGR due to superior demand for navigation services and infotainment, especially in China and India. The research firm pointed out that these nations have already found automotive IoT as a solution to issues like traffic congestion, greenhouse gas emissions and air pollution.