Autonomous driving, electric vehicles, connected and software-defined vehicles, and in-cabin monitoring are all megatrends reshaping the automotive industry.
These technologies combine to form a NZ$2.6 trillion (US$1.6 trillion) opportunity by 2034, nearly a 10-fold increase compared to 2023, says a new report from IDTechEx Future Automotive Technologies 2024-2034: Applications, Megatrends, Forecasts.
Much of this potential market revenue will be coming from components required for electrification and automation, but the report predicts services offered by autonomous and connected vehicles have the most room for growth.
Autonomous cars are still in the early days, with commercial testing starting to scale in the US and China, but recent events involving Cruise show the industry still needs to be apprehensive, says IDTechEx.
Waymo surpassed 11 million driverless kilometres across San Francisco, Los Angeles and Phoenix.
“In this time, it claims to have shown that its vehicles are 6.7 times less likely to be involved in an injury-causing accident compared to human drivers.”
Connected vehicles are already a reality in the automotive industry, with IDTechEx seeing OEMs bring in new revenue models based on a feature-as-a-service (FaaS) plan.
“This allows customers to subscribe to some features of their vehicle, like a heated steering wheel, as they need it.”
IDTechEx predicts these models and features will grow more all-encompassing and complex over the next decade.
It says annual revenue generated through connected and software-defined vehicles (SDVs) will exceed NZ$1.1 trillion (US$700 billion).
IDTechEx finds that revenue generated through future automotive technology services will grow at a compound annual growth rate (CAGR) of 44.4% between 2023 and 2033.
In EVs, the motor, battery, and power electronics form a growing market that can expect to see a CAGR of 9.8% between 2023 and 2033, it adds.
The report finds that the ADAS and the automated vehicle sensors market will grow at a CAGR of 13.7% between 2023 and 2033 and sensors for in-cabin monitoring will grow at a CAGR of 14.7% during the same time.
A free-to-attend webinar on the topic is on Tuesday January 30, 2024 – click here for more information.