Vehicle Technology Market to Grow
November 13, 2019—The global predictive vehicle technology market is projected to grow at a CAGR of 20.1 percent to reach $90.2 billion by 2027 from an estimated $20.8 billion in 2019.
The rapid incorporation of vehicle connectivity and cloud technologies is enabling innovations and developments in the field of vehicle diagnostics and prognostics. Device integration features in connected vehicle technology are considered the main enabler for predictive vehicle technology. However, issues associated with data security and integration of real-time data are restraining the growth of predictive vehicle technology market during the forecast period.
On-premise is the largest deployment segment of the predictive vehicle technology market during the forecast period. The rising demand for enhancing driver productivity and the need to reduce operational costs have encouraged the growth of predictive vehicle software and services. In addition, the demand for various applications such as parking management and emission analytics is also contributing to the increase in on-premises deployment for predictive vehicle technology.
The passenger vehicle segment is expected to dominate the predictive vehicle technology market. The increase in disposable income of consumers has pushed the demand for passenger cars, which, in turn, has driven the growth of the predictive vehicle technology market.The passenger car segment is anticipated to hold the largest share in the predictive vehicle technology market.
The market for predictive vehicle technology in passenger cars is expected to grow at a significant rate, particularly in emerging economies of Asia Pacific. Furthermore, the increasing demand for electric cars by consumers and several amendments in transport policies made by various governments to curb harmful emissions are expected to drive the growth of the passenger vehicle segment.
Asia Pacific is expected to record the highest growth rate during the forecast period. The Asia Pacific market is a vast geographical region comprising countries such as Japan, China, India, South Korea, and Thailand.China is the largest producer of automobiles in the world.
The country's automotive sector has witnessed significant growth in recent years. Moreover, component manufacturing startups and Tier I companies have strengthened their foothold in the region, thereby inflating the growth of the market.
In addition, established automakers in Japan, China, and South Korea are expected to cater to the increased demand for pumps from OEMs in the region.