Market Insights Technology Internet of Things

Automotive IoT - Southern Africa

Southern Africa

The Automotive IoT market in Southern Africa is poised to witness substantial growth in the coming years.
According to projections, the region's revenue in this market is expected to reach a significant milestone, amounting to US$0.89bn by 2024.
This impressive figure indicates the immense potential and opportunities that lie ahead for the Southern African automotive industry.
Furthermore, the market is expected to maintain a steady growth trajectory, with an annual growth rate (CAGR 2024-2029) of 4.89%.
This promising growth rate is projected to drive the market volume to reach a substantial US$1.13bn by 2029.
These figures highlight the sustained growth and increasing demand for Automotive IoT market solutions in the Southern African region.
In a global context, it is worth noting that in the United States stands out as a major revenue generator in the Automotive IoT market.
In 2024 alone, in the United States is projected to generate a staggering revenue of US$91.62bn.
This indicates the dominance of the US market in terms of revenue generation and underscores its pivotal role in shaping the global Automotive IoT market industry.
As the Southern African region continues to embrace and adopt Automotive IoT market technologies, it is expected to witness substantial growth and contribute significantly to the overall market.
With its vast potential and the increasing demand for connected and intelligent automotive solutions, in Southern Africa is set to become a key player in the Automotive IoT market on the global stage.
The implementation of Automotive IoT in Southern Africa is gaining traction, with a focus on improving road safety and optimizing transportation logistics.

Key regions: Germany, Canada, United Kingdom, Australia, India

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Analyst Opinion

One of the fastest growing Internet of Things’ markets has been the Automotive IoT as more manufacturers are entering the race of delivering the first completely autonomous car available for commercial sales. Technology used for Advanced Driver Assistance Systems (ADAS) has been developed and introduced to newer vehicles, and governments, such as the EU countries, have been introducing legal framework for mandatory ADAS features to improve road safety.

Vehicle telematics have become widely available and affordable, and the advancements in technology including more sophisticated sensors and advanced analytics tools are fueling the demand. The sensors and analytics tool have especially seen a high adoption in fleet telematics as providing real-time tracking and monitoring of vehicles yields great results in improving operational efficiency and reducing costs.

Connected vehicles are also becoming part of smart cities with systems such as the vehicle-to-infrastructure (V2I) and the data communicated helps in improving road safety and reduce congestion. The more vehicles are connected, the better results are.

Methodology

Data coverage

The data encompasses B2B, B2C and B2G revenues. The revenue only refers to the spending share of the Internet of Things components.

Modeling approach/ Market size:

The segment size is determined through a combination of top-down and bottom-up approaches. We use annual financial reports of the market-leading companies and industry associations, as well as third-party studies and reports to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as consumer spending, internet penetration, 4G coverage, and current and historical developments. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques but primarily exponential smoothing. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.