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Hot Topic—IT Trends in the Brazilian and Mexican Automotive Sector

  • November 2015
  • 41 pages
  • Frost & Sullivan
Report ID: 3365811


Table of Contents

How Technology is Impacting the Automotive Industry in Latin America and Global Insights

This Hot Topic explores how the IT industry is transforming the automotive industry, with a particular focus on the emerging connected car trend. It provides important insights into connected cars by presenting an overview of the current opportunities in the market and those that are still being developed. Beyond this, the analysis investigates how the convergence of the IT and automotive industries will translate into future trends for cities as an important step in creating smart cities. It describes the automotive sector in Brazil, comparing to the international context, in order to provide an idea of the potential market that the country has for the connected cars segment. It also provides highlights from the Mexican market to illustrate Latin American opportunities and challenges.

Key Findings
The implementation of new technologies in cars is changing the automotive industry. The connected car market is expected to grow over % in Brazil and Mexico and over % in larger markets such as North America, Europe, and China until 2020. Integrated connectivity solutions are leading to increased partnerships opportunities between different industries, such as automakers, technology companies, telecom providers, and
government sectors. However, it also raises ethical dilemmas regarding the data that it is being produced by vehicles, including drivers’ privacy and safety. This Hot Topic analysis covers key IT trends in the automotive industry. It explains how IT is transforming this industry and provides important insights related to these trends. In addition, upcoming opportunities for connected cars are discussed. It also provides highlights from the
Brazilian and Mexican markets to illustrate the potential opportunities and challenges regarding connected vehicles in Latin America.

The Automotive Sector
Key Takeaway: With million units sold, Brazil represented almost % of the Latin America sales in 2014. It was the 4th-largest market globally, behind China ( million), the United States ( million),
and Japan ( million). Mexico was included on the North American region and sold million vehicles in 2014.

The automotive sector is very competitive, with over cars models being launched every year. In order to gain market share, companies must differentiate their products and meet consumers’ needs.
Although Brazil is one of the biggest automotive markets globally, it does not have the same penetration rates in the connected car segment, which is a special segment of vehicles that involves many factors, from
infrastructure requirements to technology developments. Cars are no longer seen as status symbols, like they used to be for the baby boomers generation. Now, millennials, or Generation Y, are focused on meeting their transportation needs. As a result, in the United States, the trend is to drive less, and studies show that the estimated number of vehicle miles driven has decreased in recent years.

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