According to a recent report published by Allied Market Research, titled, “Portable Automotive Wi-Fi Router Market by Vehicle Type, Sales Channel, Vehicle Class and Application: Global Opportunity Analysis And Industry Forecast, 2021–2030,” the global portable automotive Wi-Fi routers market was valued at $1.12 billion in 2020, and is projected to reach $5.15 billion by 2030, registering a CAGR of 16.6% from 2021 to 2030.
North America dominates the market, in terms of revenue, followed by Europe, Asia-Pacific and LAMEA. U.S. dominated the global portable automotive Wi-Fi router market share in 2020. Mexico is expected to grow at a significant rate during the forecast period, owing to increase in demand for smart vehicles.
The automotive industry has shifted its focus toward well-connected systems and vehicles. Enhancing the driver and passenger experience without compromising on safety should be the prime factor to be considered by the manufacturers and service providers. Connectivity is more than just a need, it’s now an integral part of life. From businessmen to frequent travelers, all require connectivity on the go. With uncertainty of cellular signal, it becomes essential to incorporate a device or a service, which aids and delivers continuous signal in order to stay connected in the modern social world.
A portable Wi-Fi router for hotspot access can be used to ensure connection between automotive devices. Automotive manufacturers are thus embracing advanced connectivity solutions, adopting cellular and Wi-Fi technology to deliver resourceful services and enhance customer experience. The increasing penetration of Internet of Things (IoT) into the automotive industry is enabling fleet and automobile telematics to offer better and efficient solutions to customers. The boom in smartphone industry and aggrandized use of cloud technology, navigation, and other services significantly boost the growth of the global portable automotive Wi-Fi router market.
The portable automotive Wi-Fi router market has been segmented on the basis of vehicle type, sales channel, vehicle class, application and region. By vehicle type, the market has been segmented into passenger car, light commercial vehicle and heavy commercial vehicles. By sales channel, the market has been segmented into OEM and aftermarket. By vehicle class, the market has been segmented into mid-priced and luxury. By application, the market has been segmented into driver assistance, safety, entertainment, well-being, vehicle management and mobility management. By region, the market has been studied across North America, Europe, Asia-Pacific and LAMEA.
Factors such as rise in trend of connectivity solutions, growing adoption of cloud technology and increase in use of cloud-based technology for automotive telematics solution create a positive impact on the growth of the market across the globe. However, factors such as lack of uninterrupted & seamless internet connectivity and high cost of advanced technologies, restrain the growth of the market during the forecast period. Moreover, the factors such as lack of cellular internet connectivity and rise in adoption of connected cars, create numerous opportunities for the growth of the market during the forecast period.
Key Findings Of The Study
- By vehicle type, the heavy commercial vehicle segment is expected to register a significant growth during the forecast period.
- Depending on sales channel, the OEM segment is anticipated to exhibit significant growth in the future.
- On the basis of vehicle class, the luxury segment is anticipated to exhibit significant growth in the future.
- On the basis of application, the vehicle management segment is anticipated to exhibit significant growth in the future.
- Asia-Pacific is anticipated to register the highest CAGR.
Covid-19 Impact Analysis
- COVID-19 presented the world with an unprecedented economic, humanitarian, and healthcare challenge.
- Rapid spread of the disease has led to a significant impact on the global automotive industry, with a downturn in demand for new and old vehicles.
- Industry experts believe that post the pandemic, last-mile conveyance will shift toward personal mobility and the electric vehicle equipped with advanced safety & security system will register a suitable growth rate.
- Amid a new reality of working from home, canceling trips, and even forgoing outings to restaurants and grocery stores, the mobility industry encompassing a range of lightweight vehicles, such as bicycles, e-scooters, and mopeds, is facing devastating declines in ridership and revenue.
- Moreover, during the end of 2020, the situation came in control in some countries due to which the demand & supply gap was fulfilled, resulting in registration of new vehicles due to the need to avoid public transport to commute from one place to another.
The key players profiled in the report includes Alpina Snowmobiles S.r.l., Arctic Cat Inc., BRP, Crazy Mountain, John Deere GMBH & Co.KG., MST, Polaris Inc., Taiga Motors, Yamaha Motor Corporation, Ski-doo and Lynx.