Automotive IoT Market in India 2024 - 2028

Within the automotive sector, IoT plays a vital role in overseeing car operations to improve safety and alleviate drivers' responsibilities. Automotive IoT specifically refers to the interconnected network of devices and systems, fostering communication and data exchange among vehicles, infrastructure, and other elements within the automotive ecosystem. This connectivity aims to amplify vehicle functionality, boost safety, and provide innovative services and experiences for both drivers and passengers.

Market insights:

The automotive IoT market in India was valued at INR 653.33 Bn in 2023. It is expected to reach INR 2.80 trillion by 2028, expanding at a compounded growth rate of 31.75% during the 2024 - 2028 period. Automotive companies are embracing integrated connectivity to meet the growing demand for autonomous vehicles, emphasizing the improvement of road safety through features like ADAS, satellite-based radio navigation assistance, and in-vehicle infotainment. This trend is projected to notably stimulate the expansion of the Automotive IoT market in the forecast period.

Market drivers:

The automotive IoT market is propelled by the increasing desire for connected vehicles, with various factors contributing to this surge. These include government initiatives dedicated to the development of intelligent transportation systems, a heightened demand for smart features and automated driving technologies, and the increased interest in advanced safety features. The integration of IoT in the automotive sector, particularly in fleet management, plays a crucial role, involving the incorporation of sensors, tracking software, and weight measurement tools in vehicles.

Market challenges:

In India, the progress of IT infrastructure on highways trails behind that of more technologically advanced nations. The essential 3G and 4G-LTE communication networks necessary for connectivity are primarily accessible in urban and semi-urban regions, resulting in limited access in rural areas. The high expenses involved pose a notable obstacle to the growth of the Automotive IoT market, particularly due to the high costs associated with vehicle components, software, and sensors in the Automotive IoT domain.