China is speeding up the development of its automotive industry beyond traditional fuel vehicles. Chinese new energy vehicle (NEV) industry has developed rapidly as the government also proposes to increase its sales in the upcoming years. Additionally, many OEMs have built a plan to keep developing electrification technology. As one of the inevitable technological trends in the industry, the Internet of Vehicles (IOV) is fundamentally transforming the Chinese automotive industry by providing a smarter driving experience as well as an efficient and environment-friendly transportation system.
The huge market and supportive government regulations provide a strong foundation for the adoption of IOV by the Chinese automotive industry. The country's IOV users reached 17.8 million in 2017, making it one of the most important markets in the world. This year, the IOV market is expected to reach RMB 312 billion, with a CAGR of 55.5%, estimated based on the price of hardware and software products of RMB 5,000 per vehicle.
Many leading OEMs, spare part manufacturers, and BATs have entered the IOV market and hold strong market share in their respective segments, such as ADAS, T-box, and voice interaction systems. As the IOV industry continues to evolve, there would certainly be more sophisticated applications achieved with the development of IOV technologies.
The Future of IOV in the Chinese Automobile Industry
This report introduces the definition, current development, and forecasting of IOV, as well as the key technology applied and realized through it. Three major applications greatly influenced by IOV are described in detail, including ADAS, intelligent vehicle terminal, and voice interaction. The paper also shows that the IOV market offers many untapped opportunities for new players looking to get into the business.