A report released by data and analytics company GlobalData has found that the connected vehicle technologies market in the Asia Pacific region is forecast to grow at an annual compound rate of 4% between 2023 and 2028.
The proliferation of internet connectivity and deployment of 5G cellular technology in major countries such as China, India, South Korea, and Japan is expected to drive the demand for new connectivity features in cars in the Asia Pacific region.
The report, Global Sector Overview & Forecast: Connected Vehicle Technologies – March 2024, reveals that the region held a significant share of the global automotive connected technologies market in 2023, with Asian countries leading the adoption of OE smartphones and embedded connectivity units. The Asia Pacific market is set to grow from 28.5 million units in 2023 to 34.6 million units in 2028.
Additionally, advancements in technology are being utilized to enhance passenger safety and boost the security features in vehicles. Many startups have developed specialized chipsets that enable fast communication via 5G and decentralized networks.
Rapid growth in the middle and affluent classes are across various Asian countries is leading to an increased demand for smart and connected vehicles.
Developing nations are building new urban areas to accommodate their growing populations. To make transport networks and traffic management more efficient, many of these innovative metropolitan areas are being developed as smart cities that integrate connected technology across various levels of infrastructure.
“As cars become more advanced, consumers are quickly coming to expect seamless connectivity while driving,” said GlobalData’s Gorantala Sravan Kumar. “This means that automakers and suppliers must keep up with the demand for cutting-edge technology to offer a smooth user experience.”
“This is becoming increasingly important to attract younger consumers, who have grown up with networking technology and are more likely to embrace it,” Kumar adds. “To ensure seamless connectivity, most customers now expect their cars to come equipped with features such as MirrorLink, Android Auto, or Apple CarPlay. These smartphone integration platforms are crucial enablers of connected car technology.”
