AutoTrends Weekly

Preface

Sharing economy market to exceed $827.1 billion by 2032  

• The global sharing economy market size was valued at $387.1 billion in 2022, and is projected to reach $827.1 billion by 2032, growing at a CAGR of 7.7% from 2023 to 2032, according to a recent report from Allied Analytics LLP.

• The market is driven by factors such as cost-effectiveness of sharing economy services and diversification of services in sharing economy platforms. The adoption of technological advancements and expansion of services in international countries offers new opportunities in the coming years.

• Based on type, the sharing transportation segment dominated the market in 2022 accounting for two-fifths of the market share and is expected to dominate the market during the forecast period. This segment is projected to attain the highest CAGR of 7.1% from 2023 to 2032, owing to its easy availability of ride-hailing services, unique discounts, and growth of internet services in the market. (Allied Analytics LLP, May 3)

Car leasing market size to record $41.82 billion growth from 2023-2027

• The global car leasing market size is estimated to grow by $41.82 billion from 2023 to 2027, at a CAGR of 7.73%, according to a recent report from Technavio.

• Car leasing companies struggle with surplus off-lease vehicles, which hampers their profits. Dealers respond by selling these older off-lease cars as used vehicles.

• The surplus of off-lease cars exerts downward pressure on dealer profits, leading them to either lower lease prices or sell these vehicles as used cars at significant discounts.

• Despite the challenges, selling off-lease vehicles as used cars enables dealers to maintain profitability. This approach fuels the growth of the car leasing market. (Technavio, May 1)

In-car electronics and communications market to grow at a CAGR of 9.6% by 2034

• The in-car electronics and communications market is projected to grow at a CAGR of 9.6% during the forecast period 2024-2034, according to a recent report from Visiongain.

• Speedy advancements in electronics are spurring innovations in vehicle functionalities and capabilities.

• Autonomous vehicle development improves safety and functionality. Connectivity tools facilitate communication not only among driverless vehicles but also between vehicles and infrastructure.

• Auto companies are leveraging AI, machine learning, and IoT technologies to optimize fleet operations, assess performance-affecting factors, and enhance passenger safety and experience through automation. (Visiongain, May 3)

Auto telematics system market size to worth $49.19 billion by 2032

• The global auto telematics system market size is calculated at $33.56 billion in 2024 and is expected to be worth around $49.19 billion by 2032, at a CAGR of 5.04% from 2024 to 2032, according to a recent study published by Towards Automotive.

• The auto industry is experiencing a surge in demand for high-performance, energy-saving vehicles equipped with advanced technology, which is driving the integration of remote information systems into vehicles.

• Post-pandemic government initiatives aimed at promoting the adoption of NEVs have spurred an increase in sales of EVs. This, in turn, has created a growing demand for tracking devices such as vehicle telematics systems.

• The connected segment of the auto telematics market is experiencing robust growth, driven by technological advancements, increasing consumer demand, and supportive government initiatives. (Towards Automotive, May 3)

Tesla to work with Baidu in push to offer self-driving tech in China 

• Tesla recently struck a deal with Chinese tech giant Baidu to use the latter's mapping and navigation functions.

• The authorities insist that intelligent driving systems must be equipped with what is known as an "A-level" mapping qualification, and foreign players need to partner with Chinese companies to use that service. Baidu is among 19 Chinese companies that currently hold such credentials.

• The timeline for activating FSD in China remains unclear, and the remaining requirements are uncertain. (Nikkei, Apr. 29)

Tech firms eye big footprint in vrooming NEV sector 

• Chinese technology companies are foraying into the NEV industry, believing that the smart driving functions of EVs will be key to winning market competition over the next decade.

• From supplying autonomous driving systems to developing cars, tech companies such as Huawei and Xiaomi are emerging as competitive auto players. Huawei is expanding its presence in the NEV sector.

• The upward spiral is expected to continue, with about 50% of new vehicles sold in China being NEVs in 2025. This is expected to hit 70% in 2030, with annual deliveries reaching around 20 million units a year, said Ouyang Minggao, an academician at the Chinese Academy of Sciences. (China Daily, May 3)

Hongqi presents electric cars and plans to launch in Germany

• Hongqi, which belongs to the Chinese state-owned company FAW, presented an electric convertible and several electric car studies at the motor show in Beijing.

• Those responsible at Hongqi want to compete with Mercedes, Audi, and the like, but undercut them in price. To this end, they want to "prepare the electric cars well" for Europe and position themselves as a Chinese luxury brand with an "unlimited" warranty.

• Hongqi plans to sell around 65,000 of these globally in 2027 and around 94,000 in 2028. It will initially focus on Europe and the Middle East. (Electrive, Apr. 29)