Latin America IoT in Automotive Market
Latin America is one of the emerging markets for IoT in automotive market. The connected car technology is expanding in Latin America very quickly and penetration is expected to nearly be four times of the current size in the next five years. This is expected to drive the adoption of IoT in automotive market in LATAM. Latin American countries like Brazil, Mexico, Colombia, Chile and Argentina are focusing on vehicle connectivity and product differentiation in automotive. Connected value-added services and infotainment, and next-generation human-machine interface are of highest interest to people in the region. According to Netscribes, the Latin America IoT in automotive market is projected to grow at a compound annual growth rate (CAGR) of 22.04% leading to a revenue of USD 6.42 Bn by 2023.
Growth in Gross Domestic Product nd drop in poverty are expected to boost the adoption of high-end IoT enabled cars in the coming years. With Brazil and Argentina coming out of recessions, growth is returning to Latin America region after almost five years of deceleration. Inflation is also controlled at sub-nominal levels, hinting at favorable adoption of IoT in automotive industry. Also, cars are the preferred mode of transportation in this region as public transportation system is moderate. So, there is a demand for in-vehicle media and entertainment. The improved availability of high speed internet is enabling customers to shift towards using integrated IoT connectivity where consumers integrate their smartphone app in the vehicle through IoT.
The Latin America IoT in automotive market is classified into three primary segments:
– based on connectivity form: tethered, integrated, embedded
– based on communication type: vehicle to vehicle, in-vehicle, vehicle-to-infrastructure
and based on application: navigation, telematics, and infotainment.
The people in Latin American countries like Brazil prefer to customize their vehicles with aftermarket infotainment options like satellite TVs, cockpits, etc. along with provisions of information like real-time traffic updates. Thus, the infotainment segment, particularly of the integrated type, is growing steadily in the region.
Key growth factors
In Latin American countries like Brazil, Mexico, Colombia, Chile and Argentina, vehicle connectivity is a primary focus for market and product differentiation. Value-added services, infotainment, and human-machine interface are segments in which consumers are the most interested. Additionally, the falling cost of connected devices, sensors and Machine-to-Machine (M2M) modules in the region, clubbed with the fact that needs for investment technology are not adequately met with traditional IT, is allowing IoT investments to accelerate in the region.
Threats and key players
Latin America is expected to face a monetization challenge in the overall IoT adoption. Determining the correct monetization opportunity for the IoT business is a necessary condition for the growth of IoT in the automotive market in Latin America.
Major players in the Latin America IoT in automotive market are Cisco, Ford, IBM, Microsoft, AT & T, etc.
What’s covered in the report?
1. Overview of the Latin America IoT in automotive market.
2. Market drivers and challenges in the Latin America IoT in automotive market.
3. Market trends in the Latin America IoT in automotive market.
4. Historical, current and forecasted market size data for the Latin America IoT in automotive market segmentation by connectivity form (tethered, integrated, embedded) – by revenue (USD Bn).
5. Historical, current and forecasted market size data for the Latin America IoT in automotive market segmentation by communication type (vehicle to vehicle, in-vehicle, vehicle to infrastructure) – by revenue (USD Bn).
6. Historical, current and forecasted market size data for the Latin America IoT in automotive market segmentation by application (navigation, telematics, infotainment) – by revenue (USD Bn).
7. Historical, current and forecasted country-wise (Brazil, Mexico and Argentina) market size data (USD Bn) for the Latin America IoT in automotive market and its segmentations by connectivity form (tethered, integrated, embedded), by communication type (vehicle to vehicle, in-vehicle, vehicle to infrastructure), and by application (navigation, telematics, infotainment).
8. Analysis of the competitive landscape and profiles of major companies operating in the market.
o Understand the demand for IoT in automotive market to determine the viability of the market.
o Determine the developed and emerging markets where IoT for automotive market is provided.
o Identify the challenge areas and address them.
o Develop strategies based on the drivers, trends and highlights for each of the segments.
o Evaluate the value chain to determine the workflow and to get an idea of the current position where you are placed.
o Recognize the key competitors of this market and respond accordingly.
o Knowledge of the initiatives and growth strategies taken up by the major companies and decide on the direction for further growth.
o Define the competitive positioning by comparing the products and services with the key players in the market.