Allied Market Research
Allied Market Research

Automotive Digital Transformation Market by Component (Hardware, Software, and Service), by Connectivity (Embedded, Tethered, and Integrated), by Communication Type (In-Vehicle Communication, Vehicle-to-Vehicle Communication, and Vehicle-to-Infrastructure Communication), by Application (Infotainment, Navigation, Telematics, Advanced driver assist system, Body Electronics, Safety Systems, Power Electronics, and Others), by Sales Channel (OEM and Aftermarket), and by Vehicle Type (Passenger Vehicle and Commercial Vehicle): Global Opportunity Analysis and Industry Forecast, 2020–2027

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Automotive Digital Transformation Market Outlook - 2027

The automotive digital transformation can be defined as integration of digital technologies like big data, social media, and cloud computing in a vehicle. The introduction of Artificial Intelligence (AI) and Internet of Things (IoT) in vehicle has revolutionized the automotive industry. The improved manufacturing process of vehicle combined with automated customer relationship and digital marketing has transformed the work culture in automotive industry. Besides, the real time data of vehicle has opened new gates for innovation in the automotive landscape. Additionally, the possibility of vehicles driving themselves is becoming a reality due to collaboration of advanced digital transformation in automobile. Moreover, the convenience and ease of traveling is now achievable due to automotive digital transformation.

Market scope and structure analysis:

Report Metric


Market size available for years


Base year considered


Forecast period


Forecast units

Value (USD)

Segments covered

Component, Connectivity, Communication Type, Application, Sales Channel, Vehicle Type

Regions covered

North America (the U.S. and Canada), Europe (Germany, the UK, France, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), Latin America (Brazil, Mexico, and rest of LATAM) and The Middle East and Africa

Companies covered

Intel, IBM, Microsoft, Robert Bosch, Google, Apple, Texas Instruments, Cisco, NXP Semiconductors, Continental AG


 COVID-19 scenario analysis:

  • The automotive industry was already impacted by an unprecedented disruption due to the coronavirus.
  • Automakers are looking to position themselves for recovery will need to adapt to faster industry cycles and shorter planning horizons.
  • Even as the coronavirus pandemic rages across the world, leading to lockdowns and closure of businesses, demand of automotive digital transformation market will see a growth in near future.
  • Moreover, the number of thefts is expected to rise with increasing recession due to the pandemic. This will positively impact the security system linked with automotive digital transformation.
  • Besides, the sales of vehicle would enhance by using digital media for purchasing a vehicle.

Top impacting factors: market scenario analysis, trends, drivers and impact analysis

Rise in government expenditure on building vehicle to vehicle (V2V) infrastructure is driving the market of automotive digital transformation. Additionally, increase in sales autonomous and semi-autonomous vehicles are boosting the automotive digital transformation market. Besides, rising internet speeds and integration of vehicle features with smartphones are propelling the automotive digital transformation market. Moreover, growth in technological advancement is fueling the demand for automotive digital transformation. However, underdeveloped cloud infrastructure and rising threat from hackers is restraining automotive digital transformation market. Furthermore, integration of advanced safety features and Advanced Driver Assist System (ADAS) due to automotive digital transformation is proliferating the market growth.

The automotive digital transformation market trends are as follows:

Virtual showrooms triggering the growth

Vehicle buying was a lengthy process without the introduction of digital transformation in the field of automotive. Moreover, the comparison of features among wide variety of vehicle manufacturers, negations, and others was a hectic and time-taking process for consumers. Today, consumers are researching a vehicle online before even stepping foot in a dealership. The information of features and comparison of vehicles along with prices and 360 degrees view of vehicle is now possible with the help of digital transformation. Additionally, consumers could look for user experience of a vehicle from the shared reviews. Moreover, the virtual showrooms growth has benefited the dealerships by reducing the inventory cost. In 2020, Nissan launched virtual showroom in India. Besides, the Audi virtual showroom launched in London is attracting significant customers.

Mobility-as-a-service to nurture the market growth

With technological advancement due to Artificial Intelligence (AI) and Internet of Things (IoT)in vehicles, the connected living has now become a reality. The integration of smartphone with automotive sector have enabled new possibilities in the research and development landscape. Moreover, the continued emergence and dominance of private and public ride sharing services is expected to dominate the growth of automotive sector in next few years. Besides, the launch of autonomous vehicle is developing the ride sharing experience to a greater extent. In 2018, Waymo LLC launched commercial self-driving car service for users in Phoenix metropolitan area.

Key segments covered:




  • Hardware
  • Software
  • Service


  • Embedded
  • Tethered
  • Integrated

Communication type

  • In-Vehicle Communication
  • Vehicle-to-Vehicle Communication
  • Vehicle-to-Infrastructure Communication


  • Infotainment
  • Navigation
  • Telematics
  • Advanced driver assist system
  • Body Electronics
  • Safety Systems
  • Powertrain Electronics
  • Others

Sales channel

  • OEM
  • Aftermarket

Vehicle type

  • Passenger vehicle
  • Commercial vehicle


Key benefits of the report:

  • This study presents the analytical depiction of the Automotive Digital Transformationindustry along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the market share.
  • The current market is quantitatively analyzed from 2020 to 2027 to highlight the growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed Automotive Digital Transformation Market analysis based on competitive intensity and how the competition will take shape in coming years.

Questions answered in the automotive digital transformation market research report:

  • Which are the leading market players active in the automotive digital transformation market?
  • What are the current trends that will influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the market?
  • What are the projections for the future that would help in taking further strategic steps?
With collective industry experience of about 200 years of its analysts and experts, Allied Market Research (AMR) encompasses most infallible research methodology for its market intelligence and industry analysis. We do not only engrave the deepest levels of markets but also sneak through its slimmest details for the purpose of our market estimates and forecasts. Our approach helps in building greater market consensus view for size, shape and industry trends within each industry segment. We carefully factor in industry trends and real developments for identifying key growth factors and future course of the market. Our research proceeds are the resultant of high quality data, expert views and analysis and high value independent opinions. Our research process is designed to deliver balanced view of the global markets and allow stakeholders to make informed decisions.

We offer our clients exhaustive research and analysis based on wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics and regional intelligence. Our in-house industry experts play instrumental role in designing analytic tools and models, tailored to the requirements of particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of our recommendations and advice. With AMR’s calibrated research process and 360` degree data-evaluation methodology, our clients are assured of receiving:

  • Consistent, valuable, robust and actionable data & analysis that can easily be referenced for strategic business planning
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With a strong methodology we are, therefore, confident that our research and analysis are most reliable and guarantees sound business planning.

Secondary research
We refer a broad array of industry sources for our secondary, which typically include; however, not limited to: Company SEC filings, annual reports, company websites, broker & financial reports and investor presentations for competitive scenario and shape of the industry

  • Patent and regulatory databases for understanding of technical & legal developments
  • Scientific and technical writings for product information and related preemptions
  • Regional government and statistical databases for macro analysis
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  • Internal and external proprietary databases, key market indicators and relevant press releases for market estimates and forecast

Primary research
Our primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks and face-to-face interactions. We are also in professional corporate relations with various companies that allow us greater flexibility for reaching out industry participants and commentators for interviews and discussions, fulfilling following functions:

  • Validates and improves the data quality and strengthens research proceeds
  • Further develops analyst team’s market understanding and expertise
  • Supplies authentic information about market size, share, growth and forecasts

Our primary research interview and discussion panels are typically composed of most experienced industry members. These participants include; however, not limited to:

  • Chief executives and VPs of leading corporations specific to industry
  • Product and sales managers or country heads; channel partners and top level distributors; banking, investments and valuation experts Key opinion leaders (KOLs)

Analyst tools and models
AMR has developed set of analyst tools and data models to supplement and expedite the analysis process. Corresponding to markets, where there is significant lack of information and estimates, AMR’s team of experts and analyst develop specific analyst tools and industry models to translate qualitative and quantitative industry indicators into exact industry estimates. These models also allow analysts to examine the prospects and opportunities prevailing in the market to accurately forecast the course of the market.

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