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New connectivity features set to grow auto industry

The demand for new connectivity features in cars in the Asia-Pacific (APAC) region is expected to grow in the coming years.

The demand for new connectivity features in cars in the Asia-Pacific (APAC) region is expected to grow as a result of the proliferation of internet connectivity and deployment of 5G cellular technology.

According to GlobalData, the APAC connected vehicle technologies market is projected to grow at a compound annual growth rate (CAGR) of more than 4 per cent during 2023-2028.

Major countries, such as China, India, South Korea, and Japan are expected to drive the demand.

Advancements in technology are being utilised to enhance passenger safety and boost the vehicles’ security features. Many startups have developed specialised chipsets that enable fast communication via 5G and decentralised networks.

GlobalData’s latest report, “Global Sector Overview & Forecast: Connected Vehicle Technologies – March 2024,” reveals that APAC held a significant share of the global automotive connected technologies market in 2023, with Asian countries leading in the adoption of OE smartphone and embedded connectivity units.

The APAC market is set to grow from 28.5 million units in 2023 to 34.6 million units in 2028.

What is means for repair workshops

Repairify’s director of innovation Martin Brown, emphasises the importance for the automotive industry to prepare itself for the future changes.

“Being prepared and equipped with the right resources for the new technology is essential,” Brown says.

Brown emphasised the importance for workshops to identify the challenges and new technology in the automotive industry will bring.

“Now’s the time to get in on this because if you’re going to invest now, then you are in a good place to take on the work, perhaps also for other collision centres around you and make sure that you recoup the investment relatively quickly,” Brown says.

GlobalData Automotive, associate project manager, Gorantala Sravan Kumar, highlights the proliferation of new connectivity technologies in the Asia Pacific region.

“Consumers, especially younger generations, are hooked onto their smartphones and gadgets and want to be connected all the time. Their reliance on the Internet and gadgets also seeped into their vehicles and want to stay connected even on the road,” Kumar says.

Growth in APAC economy

The middle and affluent classes are growing rapidly across various Asian countries, leading to an increased demand for smart and connected vehicles.

“Consumers are now seeking features such as in-car infotainment, connected services, and advanced driving assistance systems (ADAS), which have accelerated the development of connected vehicle technologies,” Kumar says.

“Asia-Pacific nations have made significant investments in upgrading their digital infrastructure, including the deployment of 5G networks. These high-speed networks are crucial in providing reliable and fast communication between vehicles and the surrounding infrastructure.”

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