OBU (On Board Units) Market: Current Analysis and Forecast (2022-2028)

Report Description

The global OBU market is expected to experience significant growth over the forecast period. The OBU is a key component in the Intelligent Transportation System (ITS) used for toll collection, tracking, and navigation purposes. The OBU market is driven by several factors, including the increasing adoption of ITS, the growing demand for electronic toll collection systems, and the rising need for real-time traffic information. Additionally, the government’s initiatives to implement smart transportation systems, increasing demand for connected cars, and increasing demand for safety features in vehicles are further propelling the growth of the OBU market. Recently, the market has witnessed some new developments. For instance, in 2021, Continental AG launched its fifth generation OBU technology, which is an all-in-one device that can handle various functionalities, including electronic toll collection, positioning, and infotainment services.

Commsignia; Danlaw. Inc.; HARMAN International; Mitsubishi Motors Corporation; Movyon SpA; Q-Free ASA; SolarEdge; Continental AG; Unex Technology Corporation; and Kapsch TrafficCom AG are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies. For Instance, in 2019 Danlaw Inc., an industry-leading provider of innovative vehicle connectivity solutions launched its C-V2X AutoLink On-board Unit (OBU) and RouteLink Roadside Unit (RSU).

Insights Presented in the Report

“Amongst type, Sport OBU category to witness higher CAGR during the forecast period.”

Based on type, the market is segmented into Single-chip OBU (Without IC Card Interface) and Double-chip OBU (With IC Card Interface). The Double-chip OBU (With IC Card Interface) category witnesses higher CAGR during the forecast period due to several key drivers. Firstly, the IC card interface allows for secure and convenient payment for tolls and other services, making it an attractive option for commercial vehicles. With the IC card interface, users can easily store and manage their payment information, making transactions faster and more efficient. Secondly, the double-chip design of these OBUs provides enhanced security features, which is essential in the transportation industry. With the double-chip design, one chip can be used for toll payments while the other can be used for security and authentication purposes. This helps prevent fraud and unauthorized access to the OBU system, ensuring the safety and security of both the vehicle and its occupants

OBU Market Report Coverage

 “Amongst application, the commercial vehicle to experience significant growth.”

Based on application, the market is segmented into commercial vehicle and passenger vehicle. The commercial vehicle segment has been experiencing significant growth in the OBU market due to several key drivers. Firstly, the growing demand for efficient fleet management and optimization is driving the adoption of OBUs in commercial vehicles. OBUs provide real-time data on vehicle location, speed, and fuel consumption, which helps fleet managers optimize routes, reduce fuel costs, and improve overall operational efficiency. Secondly, the implementation of various government regulations mandating the use of OBUs in commercial vehicles is also contributing to the growth of this segment. For instance, in the European Union, the European Electronic Toll Service (EETS) Directive requires the use of OBUs to pay for tolls across member states, which has driven the adoption of OBUs in commercial vehicles.

“Asia-Pacific (APAC) to hold a significant share in the market.”

The Asia-Pacific (APAC) region has a significant share of the OBU market due to several drivers that are unique to this region. One of the key drivers is the increasing demand for advanced transportation systems in emerging economies such as China, India, and Southeast Asian countries. As these countries continue to develop, there is a growing need for better traffic management systems to improve safety and reduce congestion. OBUs, which are essential components of intelligent transportation systems (ITS), play a critical role in achieving these goals by providing real-time information on traffic conditions, routing, and toll collection. Another driver of the OBU market in the APAC region is the increasing adoption of electronic toll collection (ETC) systems. Several countries in this region, such as Japan, South Korea, and Taiwan, have well-established ETC systems that rely on OBUs to facilitate toll collection. With the growing popularity of cashless payment systems and the need for faster and more efficient toll collection, there is a significant demand for OBUs in the APAC region. Recent new developments in the OBU market in the APAC region include the introduction of new technologies such as 5G and V2X (vehicle-to-everything) communication. These technologies are expected to revolutionize the way vehicles communicate with each other and with the surrounding infrastructure, making transportation safer, more efficient, and more environmentally friendly. For example, in Japan, the government has launched a V2X trial project that uses OBUs to provide real-time information on road conditions and traffic signals to connected vehicles.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The global OBU market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the OBU (On Board Units) Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global OBU market were the three major steps undertaken to create and analyze the adoption of OBU in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global OBU market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the OBU market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the OBU market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as type and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the OBU market. Further, we conducted factor analysis using dependent and independent variables such as various types and applications of OBUs. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the OBUs market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global OBU market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the OBU market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global OBU market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global OBU market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of type and application in the global OBU market.

The main objective of the Global OBU Market Study

The current & future market trends of the global OBU market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the OBU market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas of type and application.
• Define and analysis of the regulatory framework for the OBU
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the OBU market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
• Company profiles of the OBU market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

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