Computer on Wheels Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware and Software), By Vehicle (Light Duty Vehicle, Heavy Duty Vehicle, and Robotaxi), and Regional Forecasts, 2022-2029

The global computer on wheels market size was valued at USD 1.20 billion in 2021. The market is projected to grow from USD 1.75 billion in 2022 to USD 108.96 billion by 2029, exhibiting a CAGR of 80.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with computer on wheels experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 72.5% in 2020 as compared to 2019.

The composition of hardware, electronics, and software that provides connectivity and autonomy features such as 5G connectivity, ADAS, auto parking systems, and many others are incorporated in a single vehicle referred to as computer on wheels in the automotive industry. As the integration of advanced software and hardware is increasing, vehicles are significantly claiming the status of computer on wheels. Computer on wheels in the automotive industry is also described as software-defined vehicles or software-enabled vehicles. The integration of software in these vehicles to control and manage various applications is increasing with technological advancement.

Major automotive manufacturers and suppliers are focusing on the development of advanced technologies, which is driving market growth. The trend of adopting autonomous vehicles and connected vehicles on the road for private and commercial purposes, such as ride-hailing services, is fueling the growth of computer on wheels. The threat of cyber attacks, capitalization, and affordability restrains the market proliferation; however, major tech giants working on improving safety and security systems to prevent cyber threats contribute to the market expansion. Companies are focused on partnerships and collaboration to develop technologies that will further reduce the cost of vehicles in the near future.

COVID-19 IMPACT

Consumer Focus Toward Autonomous and Connected Vehicles Amid COVID-19 Pandemic Boosted Market Growth

The spread of COVID-19 and closure of manufacturing facilities worldwide severely affected leading companies in the automotive domain as production of new vehicles was stopped. Moreover, reduced OEM investments and less adoption of new technologies hindered market growth during the pandemic.

As businesses and educational institutions were closed to reduce social contact and people started commuting less, automakers were prompted to consider cost-cutting measures. The pandemic and resulting supply chain disruptions resulted in a huge semiconductor chip shortage across various industries, including autonomous cars, electric vehicles, and the conventional fossil-fueled automotive industry.

Delays in availability of semiconductor chips also affected the launch of autonomous car fleets, which obstructed the growth of the connected autonomous vehicles market. As autonomous driving technology heavily relies on electronic systems, such as sensors, control units, and others, semiconductors play an integral part in monitoring and carrying out operations while collaborating with these systems for efficient and safe working of an autonomous vehicle.   

However, the effects of COVID-19 pandemic on mobility also presented an opportunity for the demand for sustainable and inclusive urban mobility solutions. Demand for autonomous cars increased in the post-pandemic period due to increasing need for contactless deliveries. Moreover, the increasing preference for autonomous car rides and safe and convenient on-demand transportation services is attracting OEMs' and investors' attention toward autonomous cars, further fueling the market recovery.

LATEST TRENDS

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Increasing Demand for Smarter, Safer Driving Solutions and IoT integration to Favor Market Expansion

The rising adoption of next-generation technology and the adoption of safer and more innovative solutions to create energy-efficient vehicles is one of the ongoing trends in the market. The increasing adoption of electric vehicles and autonomous vehicles has also influenced automotive OEMs to develop new-generation technologies for fuel-cell electric vehicles, battery electric vehicles, autonomous vehicles, and conventional fossil fuel-powered vehicles. Additionally, the rising demand for connectivity and infotainment systems drives the need for energy-efficient vehicles such as connected autonomous vehicles, electric cars, and conventional fossil fuel-powered vehicles.

The incorporation of the Internet of Things is significantly increasing as advanced technologies set the trend in the automotive market. IoT sensors gather real-time data on fuel consumption, fluid levels, engine temperature, and run time, etc. This type of big data is then analyzed to help detect pre-failure conditions and alert the driver in advance. IoT is used in several parts providing various features. For instance, connected technologies such as vehicle-to-vehicle communication, vehicle-to-infrastructure, connected tires, vehicle-to-pedestrian, and vehicle-to-network are being utilized in vehicles for better road safety and avoiding accidents. Thus, the increasing integration of IoT and Artificial Intelligence (AI) sets a significant trend in the market.

DRIVING FACTORS

Rising Integration and Development of Connected Technologies will Drive Market Proliferation

Connected vehicles download updates and send and receive data with other devices locally with the help of Wi-Fi built-in within the car. Their capability extends to accessing telematics data and remote vehicle functions, which are chosen as standard features with EVs. The introduction of connected technologies in vehicles, such as vehicle-to-vehicle communication, vehicle-to-infrastructure, and vehicle-to-everything, and user-to-vehicle connectivity features such as Bluetooth, 4G, and 5G connectivity with GPS technologies have enhanced user interaction with the vehicle creating a satisfying driving experience.

Moreover, governments are also focusing on developing smart road infrastructure to cope with advancements in the automotive industry which will facilitate market expansion in the automated and connected technology sector. Major players are focused on developing efficient high-technology cars incorporated with connected systems and automated technologies to provide better assistance, ease of driving, and transit to the user.

Additionally, connected systems combined with autonomous technologies have enhanced the future of Connected Autonomous Vehicle (CAV) technology that provides full or partial assistance to the driver. For instance, in June 2021, Tesla worked on its vehicle using CAV technology and launched its new high-speed computer on wheels Model S-Plaid.

RESTRAINING FACTORS

Threat of Cyber Attack in Automated and Connected Vehicles Restrains the Market Growth

The advancement in technology, such as driver assistance, relies on several components and systems such as electronics, sensors, and computer systems. These systems are vulnerable to computer network disruptors such as data thieves or malicious actors, spoofers, and denial of service attacks that could shut down the computer on vehicles. Hackers could take control of the vehicle or shut down the vehicle remotely. Car thieves could direct a self-driving car to relocate to a new location.

Several vehicles use the Controller Area Network (CAN) that helps to communicate with the car's Electronic Control Unit (ECU), which operates the antilock brakes, airbags, transmission, audio system, doors, and various other parts, including the engine. This results in the higher necessity of applying cyber security for computers on wheels. Systems and components that perform the vehicle's safety should be secured from harmful attacks, unauthorized access, damage, or other interference with the safety functions.

All these factors restrain the adoption development of the computer-on-wheels market. However, automotive companies and other technology provider companies are focused on improving their cyber security features by providing high-quality software and hardware, enabling easier modifying or patching platforms. With the help of the collaboration between product security teams and corporate IT security teams, Over Air (OTA) software updates are provided for certain vehicles that are essential for the connected systems.

SEGMENTATION

By Component Analysis

Increasing Development and Integration of Advanced Hardware into Vehicles will Aid Segment Growth

Based on component, the market is bifurcated into hardware and software.

The hardware segment dominated with the largest market share in 2021. Hardware comprises the core mechanical systems present in the vehicle that perform their tasks and functions with the help of inputs received from software systems. Advancement in the hardware systems in vehicle computing required for integrating software in computer on wheels to enhance the computing power of the vehicle drives the market growth. 

The software segment is growing at the fastest rate as the demand for software integration into vehicles is increasing. People are more interested in software driven vehicles that enable the connectivity feature so that the user can remotely access the vehicle’s certain system.

By Vehicle Analysis

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Rising Adoption of Autonomous Ride-Hailing Services and Driverless Cars to Aid Segment Growth

Based on vehicle, the market is divided into light-duty vehicles, heavy duty vehicles, and robotaxi.

Robotaxi dominates the market by holding a significant computer on wheels market share, and is the fastest-growing segment. The growth is attributed to rise in investments in the segment by major players to develop their business models, improve their product lines, and acquire a market position. These vehicles are planned to be deployed at the airport, commercial places, industrial parks, and other business locations that drive the market in the forecast period.

Light duty vehicle includes passenger cars and vans that are being increasingly adopted by the populace. The increase in adoption of electric passenger cars and semi-autonomous cars fuels the market in the forecast period.

Heavy-duty vehicles include trucks and buses primarily used as commercial vehicles. Rise in the transportation of people and goods propels segmental expansion. Advancements in the transport industry for adopting self-driving autonomous trucks and buses propels the market in the near future.

REGIONAL INSIGHTS

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Recent Development of Connected & Autonomous Vehicles Coupled with Use of Advanced Technologies in Upcoming Models of Asia Pacific Region Augments the Market 

The market is analyzed across Asia Pacific, North America, Europe, and the Rest of the World.   

Asia Pacific dominated the market in 2021. Major computer on wheels players in the region are focused on developing and deploying robotaxis with advanced technologies and solutions. For instance, in February 2022, Auto X announced that it had hit the 1,000 robotaxi fleet milestone in China. The company has been rapidly expanding its autonomous vehicle fleet, which fuels the market growth in the Asia Pacific region.

North America is the fastest-growing region in the market. Major players are focused on investing in the development of technology that will be integrated into the vehicles of the future. For instance, In 2021, Tesla’s Research and Development spending was up by 74% YoY to USD 1.1 billion as the company continued the development of its new products and factories for the production of advanced vehicles, thus driving market growth in the region.

Many European countries are focused on deploying rules and legislations for adopting autonomous cars. For instance, in May 2021, Germany passed a legislation for adopting self-driving or driverless cars on public roads by 2022. This laid a path for major companies to deploy robotaxis, autonomous cars, to the public, fueling the computer on wheels market growth.

Rest of the world is also anticipated to register considerable growth rates during the forecast period. Governments of several countries are planning to adapt and deploy driverless cars on their roads.

KEY INDUSTRY PLAYERS

Focus on Development of Automated and Connected Technology to Drive the Competition

This market is fragmented, with a decent number of global as well as regional players operating in this industry. It is observed that both global, as well as regional players, have a diverse product portfolio with a medium focus on geographic expansion. Majority of the regional players are focused on their acquisitions & expansion through dealership and production activities. These players are focused on developing products with increasing investment in research and development that are compatible with the latest trends and technologies.

With Increasing Development in Autonomous Cars, BMW Group is one of the Prominent Players in the Market 

BMW engages in the manufacturing and sale of automobiles and motorcycles. The company operates through different segments such as automotive, motorcycles, financial services, and other entities. It was established in 1916, and headquartered in Munich, Germany. BMW driver assistant professional provides autonomous driving technology up to level 3, which allows the car to take partial control of the vehicle under the driver’s supervision. The incorporation of IFTTT services in BMW vehicles enables the user to connect their cars with more than 260 services, which include messaging and cloud services along with smart home functions, such as outdoor lights will be turned on automatically when the car approaches its home.

LIST OF KEY COMPANIES PROFILED:

• Tesla Inc. (U.S)


• Volvo (Germany)


• Honda (Japan)


• BMW (Germany)


• Aptiv (China)


• Volkswagen AG (Germany)


• Mercedes Benz AG (Germany)


• Lyft, Inc. (U.S.)


• Didi Chuxing Technology Co. (China)


• Baidu (China)

KEY INDUSTRY DEVELOPMENTS:

• October 2022 - AWS and BMW announced its strategic collaboration to develop a Cloud-based Data Platform for BMW. This platform will first be exclusively available to BMW and then to other automotive makers. This will enable a simpler way to integrate vehicle data sources, fleet management applications, and others.


• August 2022 - Volkswagen’s CARID Technologies Group announced an investment of USD 4 billion to procure self-driving software and hardware from Innoviz Technology that includes components such as LIDAR sensors and advanced driver assistance systems. 


• November 2021 - Tesla integrated AMD's Ryzen chip in its Model Y electric vehicle for better MCU performance. According to Electrek, Tesla is launching its electric crossover with AMD Ryzen processor that will run the vehicle's infotainment system in China. With this help, Tesla will continue focusing on expanding its processing capabilities, commonly referred to as computer on wheels.


• July 2021 - Lyft, Argo AI, and Ford Motor Company collaborated to commercialize driverless autonomous ride-hailing. They aim to create an autonomous ride-hailing service using self-driving technology along with a vehicle fleet and transportation network to deliver a comfortable and memorable experience to riders.


• January 2021 - General Motors and Microsoft revealed their long-term strategic partnership that will focus on developing self-driving cars. This partnership will focus on the implementation of cloud computing for self-driving vehicles. This strategic partnership will allow Microsoft to expand its foothold in the digital supply chain and new mobility sectors.

REPORT COVERAGE

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The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, components, and vehicles. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation