Global Automotive Digital Services Market Size By Type (Mobility on Demand Services, Logistic Fleet Management Services), By Application (Vehicle Owners, Automobile Manufacturers, Automobile Service Providers), & Region for 2024-2031

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

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Automotive Digital Services Market Valuation – 2024-2031

Get ready, because the Automotive Digital Services market is about to take off! We're seeing more and more connected cars on the road, smarter driver-assistance systems (ADAS), and everyone wants a smoother, more connected experience inside their vehicles. Plus, with electric and even driverless cars becoming more popular, the demand for these digital services is only going to keep growing. Think about it – electric vehicles (EVs) need some seriously smart software and infrastructure to handle things like figuring out how far you can drive, managing the battery, and making sure charging stations are working efficiently. Because of all this, the market is expected to zoom past USD 3.63 Billion in 2024 and hit a valuation of around USD 11.70 Billion by 2031.

The Automotive Digital Services market is primed for significant growth propelled by the connected car revolution increasing adoption of ADAS and semi-autonomous features, and evolving consumer preferences that demand connectivity, personalization, and advanced technology within vehicles. A combination of market forces, societal trends, legal requirements, and technology advancements is driving up demand for vehicle digital services. Automotive digital services cover a broad range of capabilities and solutions from safety, data-driven insights, and regulatory compliance to connection and sustainability by enabling the market to grow at a CAGR of 12.4% from 2024 to 2031. 

Automotive Digital Services MarketDefinition/ Overview

The Automotive Digital Services Market encompasses a wide range of software-driven solutions that enhance driving experience, vehicle performance, and overall automotive ecosystem. These services include connected car features (remote diagnostics, telematics), infotainment and navigation, advanced driver assistance systems (ADAS), cybersecurity, and over-the-air (OTA) updates.

The automobile industry has undergone a revolution thanks to automotive digital services which have changed the way cars are made, driven, and maintained. These services cover a broad range of tools and programs all of which are designed to make driving more enjoyable, safer, and easier to operate vehicles. We explore the wide range of uses for automotive digital services in this thorough analysis from entertainment and vehicle networking to autonomous driving and predictive maintenance.

Automotive digital services have revolutionized the automobile business by altering the manufacturing, driving, and maintenance processes. These services include a wide range of applications and technologies that are all intended to make driving safer, more pleasurable, and simpler. In this comprehensive review, we examine the myriad applications of automobile digital services ranging from predictive maintenance and autonomous driving to car networking and entertainment.

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How Will Increasing Demand for Subscription-Based Digital Services Drive the Automotive Digital Services Market?

Technology breakthroughs have drastically changed the landscape of digital services as seen by the emergence of subscription-based business models. One example of this evolution in the automotive industry is the incorporation of over-the-air (OTA) update facilities in more recent cars. These improvements are a huge step forward providing producers and customers with unmatched efficiency and ease.

The increasing level of car connectivity is one of the main factors propelling market expansion. Sophisticated onboard systems that can connect to external networks and exchange data with one another are standard on modern cars. The increased interconnection creates new opportunities for providing customers with value-added services. For instance, cars can use on board diagnostic data from sensors to autonomously schedule maintenance appointments or use real-time traffic data to optimize navigation routes.

However, the future appears bright for digital services in the automotive industry given the ongoing advancements in automotive technology and the increasing demand for connected and intelligent automobiles.

How Will Underdeveloped Cloud Infrastructure Hamper the Automotive Digital Services Market?

The effectiveness of cloud infrastructure is crucial when it comes to automobile digital systems but insufficient internet access makes it difficult for it to function smoothly. Not only does inadequate connectivity hinder data transfer but it also risks the security of cloud-based services significantly limiting their capabilities. The efficiency and dependability of digital systems in cars are compromised by the cloud infrastructure’s inability to synchronize data across linked devices and provide real-time updates in the absence of strong internet access.

Manufacturers, service providers, regulators, and customers must work together to address the issues of inadequate internet access and cybersecurity concerns. First, infrastructure investments are required to ensure smooth access to cloud-based services across various geographic locations by enhancing internet connectivity and expanding coverage in underserved areas. The use of cutting-edge telecommunications technologies like satellite internet and 5G networks may be necessary to improve dependability and close connectivity gaps.

The market for automobile digital systems has significant obstacles due to inadequate internet access and cybersecurity risks but there are also chances for creativity and cooperation. Industry stakeholders can overcome these obstacles and realize the full potential of connected automobiles by making investments in infrastructure bolstering cybersecurity safeguards, and encouraging regulatory cooperation and customer awareness. The automobile industry can lead the digital revolution of mobility by navigating the changing threat landscape and emerging stronger and more robust through coordinated efforts and a dedication to security, privacy, and dependability.

Category-Wise Acumens

Will the Enhancing Operational Transparency and Accountability Drive the Type Segment?

With the largest market share in the automotive digital services market, the Logistic Fleet Management Service (LFMS) type is a dominant player in the industry. A number of factors work together to enhance the LFMS type’s significance and importance within the automotive industry ecosystem. The vital role that logistics play in the effective flow of products and services which is the foundation of all economies worldwide is what gives logistics its notoriety. Globalization and the constant quest of cost-effectiveness and efficiency have made this an era where the need for efficient and successful logistics operations is greater than ever.

The primary drivers behind the dominance of LFMS in the Automotive Digital Services Market is its ability to deliver tangible and quantifiable value to businesses operating fleets of vehicles. Whether it’s a small-scale delivery service or a multinational logistics conglomerate, organizations stand to benefit immensely from the adoption of digital fleet management solutions. LFMS empowers businesses to optimize route planning, vehicle utilization, and fuel consumption, thereby reducing operational costs and maximizing efficiency.

Macroeconomic changes and industrial dynamics that highlight the significance of innovation and digitization in the logistics sector are also driving the increased adoption of LFMS. The dynamics of goods transportation are changing due to rapid urbanization, the growth of e-commerce, and changing customer tastes. As a result, logistics providers are under increased pressure to deliver items more cheaply, quickly, and sustainably. By offering the agility and flexibility required to optimize operations in real-time, react to shifting client needs, and grasp new growth opportunities, LFMS helps organizations to adapt to these changing market dynamics.

Will the Increasing Industry Expertise and Strategic Mergers Drive the Application Segment?

The dominance of automobile manufacturers in the automotive digital services market stems from a combination of factors that collectively reinforce their competitive advantage and market position. At the forefront is their deep-rooted industry expertise and established brand recognition, which endows them with inherent credibility and trust among consumers. Leveraging their extensive experience in automotive engineering and manufacturing, these companies possess a unique understanding of the evolving needs and preferences of drivers, enabling them to develop digital services tailored to meet these demands effectively.

Car manufacturers have unrivalled access to target audiences and market groups thanks to their vast distribution networks and well-established customer connections. Manufacturers may guarantee that their digital services are widely adopted by current consumers and draw in new ones by forming strategic agreements with dealerships and service centres. This vast distribution network makes it difficult for new rivals to enter the market since it allows manufacturers to efficiently market and sell digital services by utilizing their current customer base and market reach.

A number of elements such as automakers’ financial resources, industry knowledge, distribution clout, and data-driven skills, support their dominance in the automotive digital services sector. Manufacturers may create and provide appealing digital services that connect with customers and increase demand and market penetration by utilizing these essential qualities. They can also take advantage of new trends and business opportunities because of their flexibility and agility which guarantees their long-term domination and leadership in the automotive digital services sector.

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Country/Region-wise Acumens

How Will Rapid Urbanization and Technological Advancements Drive the Asia Pacific Region?

Asia Pacific is emerging as a dominant region in the automotive digital services market, and several specific trends contribute to its prominence such as the rapid urbanization and increasing disposable income in countries like China, India, and Japan are driving the demand for digital automotive services. As more people move to urban areas, the need for efficient and convenient transportation solutions grows leading to increased adoption of services such as ride-hailing, car-sharing, and connected car technologies.

Asia Pacific is witnessing significant technological advancements and a robust digital infrastructure which is facilitating the integration of digital services into the automotive sector. With the widespread adoption of smartphones and the internet, consumers in the region are increasingly embracing digital platforms for various automotive-related services including navigation, entertainment, vehicle diagnostics, and maintenance.

Government initiatives and regulations aimed at promoting sustainable transportation solutions are further fueling the growth of the automotive digital services market in Asia Pacific. Governments in the region are encouraging the adoption of electric vehicles, connected vehicles, and smart transportation systems leading to increased demand for related digital services. These factors combined make Asia Pacific a dominant force in the global automotive digital services market with the region poised for significant growth in the coming years.

Will the Increasing Higher-Income Groups and Major Business Giants in Automotive Digital Services Boost the Region of North America?

The North American region is poised to experience significant growth in the global automotive digital services market driven by a confluence of factors that underscore its potential as a key growth engine. North America presents a promising environment for the growth of automotive digital services due to its large population, strong economy, and growing desire for novel solutions and linked technology. Higher-income groups in the area make up a viable target market for digital automotive services due to their readiness to invest in premium goods and propensity to embrace cutting-edge technologies.

In North America, the introduction of autonomous vehicles (AVs) opens up new opportunities for automotive digital services. There is an increasing need for advanced digital solutions that facilitate smooth communication between vehicles and infrastructure as well as strong data analytics and artificial intelligence (AI) capabilities as the race towards completely autonomous driving picks up speed. Leading AV companies both established automakers and innovative start-ups’ are making significant investments in digital services to aid in the creation and implementation of autonomous vehicles.

North America's shaping up to be a hotspot for automotive digital services, and here's whywe've got more folks with money to spend, big names in the industry are jumping in, and everyone seems to want connected, electric cars. This mix creates a ton of opportunities for all sorts of companies – from scrappy startups to massive tech companies and your everyday automotive suppliers. By tapping into their know-how and innovative ideas, they can really make the market boom, spark competition, and roll out cool digital services that make driving better, boost car performance, and unlock new ways to get around in the future.

Competitive Landscape

The Automotive Digital Services Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions

Some of the prominent players operating in the automotive digital services market include

  • Daimler
  • Ford
  • Bosch
  • HARMAN
  • BMW Group
  • Uber Technologies
  • Continental
  • Volkswagen
  • FEV Group
  • HERE Technologies
  • General Motors

Latest Developments

  • In May 2022, Google announced the launch of its Android Automotive operating system, aiming to revolutionize in-car infotainment systems. Several automakers, including Volvo, General Motors, and Ford, have adopted Google’s system to provide users with seamless integration of Google services and apps.
  • In October 2021, Tesla released beta versions of its FSD software to a limited number of users, showcasing its progress towards autonomous driving technology. Tesla has been making significant advancements in its Full Self-Driving (FSD) capability, aiming to achieve fully autonomous driving.
  • In September 2023, Ford announced a partnership with Amazon Web Services (AWS) to develop a cloud-based platform for its connected vehicles, enabling advanced features such as over-the-air updates and personalized services.

Report Scope

REPORT ATTRIBUTESDETAILS
Study Period

2021-2031

Growth Rate

CAGR of 12.4% from 2024 to 2031

Base Year for Valuation

2024

Historical Period

2021-2023

Forecast Period

2024-2031

Quantitative Units

Value in USD Billion

Report Coverage

Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis

Segments Covered
  • Product
  • Application
Regions Covered
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
Key Players

Daimler, Ford, Bosch, HARMAN, BMW Group, Uber Technologies, Continental, Volkswagen, FEV Group, HERE Technologies, General Motors

Customization

Report customization along with purchase available upon request

Automotive Digital Services Market, By Category

By Type

  • Mobility on Demand Services
  • Logistic Fleet Management Services
  • In-vehicle Digital Service

By Application

  • Vehicle Owners
  • Automobile Manufacturers
  • Automobile Service Providers

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World

Research Methodology of Market Research

To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our .

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