The global automobile industry has been shifting its focus from traditionally strong markets such as the US towards developing countries because of the increasing number of opportunities in this region. This trend has been visible in both production and sales of automobiles. IT vendors in particular have benefitted from this transition. Among the various technologies employed in automobiles GPS in particular has seen tremendous growth.
According to TechNavio, the market for GPS in the automobile industry is forecast to reach $29,918.3 million in 2012 growing at a CAGR of 18.4 percent. Developing markets are expected to contribute significantly to this growth.
The automobile industry has also been impacted by strict environmental norms and has been investing heavily in R&D on fuel efficiency and alternative fuels. With the industry spending billions on research, this opens immense potential for IT especially in the areas of information management and engineering applications. Europe in particular, with its stringent regulations has been driving the need for research.
Key market trends in this sector include:
1. Latin American markets are moving towards alternative fuels to meet environmental norms
2. Attracted by growing potential in oil-exporting countries, several international automakers are moving operations to Middle East and Africa
3. Improved camera quality is driving the growth of automatic number plate recognition across regions
4. Manufacturers in mature markets such as the US are increasingly opting for most favorable pricing and customized marketing strategies
TechNavio Research extensively covers the automobile industry. For a complete list of reports visit https://www.technavio.com/content/automobile
Automobile Industry is Shifting Focus to Developing Countries
