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SU Group Holdings Reports 11% Revenue Growth For Fiscal Year 2024

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8.7% Increase in Net Income Year over YearStrengthened Balance Sheet to Support Growth Initiatives

HONG KONG, Jan. 28, 2025 /PRNewswire/ — SU Group Holdings Limited (Nasdaq: SUGP) (“SU Group” or the “Company”), an integrated security-related engineering services company in Hong Kong, today announced financial results for the fiscal year ended September 30, 2024, led by strong growth in revenue and net income, as compared to the fiscal year ended September 30, 2023. All U.S. dollar figures cited in this press release are based on the exchange rate of HK$7.7733 against US$1.00 as of September 30, 2024.

Select Financial Highlights:

For the fiscal year ended September 30, 2024, SU Group reported an 11.3% increase in revenue on a year over year basis, led by growth in the security-related engineering services business, which increased 9.0% on a year over year basis.Net income increased by 8.7% on a year over year basis to HK$10.7 million (US$1.4 million) for the fiscal year ended September 30, 2024, with net income per share (basic and diluted) increasing to HK$0.82 from HK$0.81 on a year over year basis.

SU Group’s Chairman and CEO, Dave Chan, commented, “We are driving consistent revenue growth and business expansion as we build on our strong competitive position. Our successful initial public offering on the Nasdaq market helped fortify our balance sheet and is allowing us to accelerate strategic investments that will ensure our long-term success, including hiring additional security experts and investing in advanced security technologies like our proven AI-aided security solutions. Our specialized focus and ability to closely support customers can be seen in several landmark wins we have announced, including our support of one Asia’s largest airlines and one of Hong Kong’s leading higher education institutions. These customers serve as high-profile references, showcasing our efficiency, reliability, and versatility. Overall, we are pleased with our progress but believe we are still in the very early stages of what we can achieve as we continue to execute on our business and build long-term value for shareholders.”

SU Group’s Chief Financial Officer, Calvin Kong, noted, “We drove a near 9% increase in net income for the fiscal year 2024, reflecting our strong revenue growth and execution on operational efficiency. We remain diligent in our operating expense management, focused on expanding cash flow and committed to investing in support of our customers. We have established a solid foundation for accelerated growth, with the financial strength to scale our business in both Hong Kong and previously untapped geographic markets as we look to build on our momentum and leadership position moving forward.”

SU Group Holdings Limited (Nasdaq: SUGP) provides security-related engineering services and security guarding and screening services:

Security-related engineering services: The Company offers security-related engineering services to customers, including providing (i) security systems and products, provision of installation, and related maintenance services; (ii) security systems and products only; or (iii) maintenance services only. In addition, SU Group provides equipment rental services to its customers with use of dedicated security-related systems and equipment for contractual periods.Security guarding and screening services: The Company provides security guarding services, by dispatching security guards with corresponding abilities and qualifications on demand, to fulfill the customers’ needs such as securing and guarding physical properties by, among other things, conducting patrols, entrance guarding, access control and alarm monitoring and response such as fire and gas detection, burglary detection and emergency management such as first aid service and communication and evacuation. SU Group also offers security guarding services targeted at crowd coordination and management, and provides security screening services, where its certified screeners work to detect of explosives, incendiary devices in air cargo consignment and dangerous goods for safety purpose through the operation of threat detection systems. In addition, the Company provides a variety of related vocational training courses.

Financial Results for the Fiscal Year Ended September 30, 2024

Revenues increased by 11.3% to HK$182.2 million (US$23.4 million) for the fiscal year ended September 30, 2024 from HK$163.7 million (US$21.0 million) for the fiscal year ended September 30, 2023, primarily due to an increase in revenues from the security-related engineering services business. Revenues from the provision of security-related engineering services increased by 9.0% to HK$107.0 million (US$13.8 million) for the fiscal year ended September 30, 2024 from HK$98.1 million (US$12.5 million) for the fiscal year ended September 30, 2023.

Cost of revenues increased by 16.4% to HK$134.6 million (US$17.3 million) for the fiscal year ended September 30, 2024 from HK$115.6 million (US$14.9 million) for the fiscal year ended September 30, 2023. The increase was in line with the business growth of security-related engineering services and security guarding and screening, as the Company continues to focus on providing a comprehensive portfolio of security products and solutions, along with experienced, tenured employees.

Gross profit decreased slightly by 0.9% to HK$47.6 million (US$6.1 million) for the fiscal year ended September 30, 2024 from HK$48.0 million (US$6.2 million) for the fiscal year ended September 30, 2023, primarily due to the net impact of a decrease in the gross profit margin of security-related engineering services triggered by certain projects completed during the fiscal year ended September 30, 2024, combined with a lower gross profit margin of security guarding services contracts resulting from an increasing labor cost.

Gross profit margin was 26.1% for the fiscal year ended September 30, 2024 compared to 29.3% in the fiscal year ended September 30, 2023. Gross profit margin of project and maintenance income under security-related engineering services decreased to 32.1% for the fiscal year ended September 30, 2024 from 36.4% for the fiscal year ended September 30, 2023. Gross profit margin of equipment leasing income under security-related engineering services decreased to 64.6% for the fiscal year ended September 30, 2024 from 73.9% for the fiscal year ended September 30, 2023. Gross profit margin of security guarding and screening services maintained at a stable level, which was 15.1% for the fiscal year ended September 30, 2024, and 15.2% for the fiscal year ended September 30, 2023.

Selling, general and administrative expenses decreased by 2.1% to HK$36.0 million (US$4.6 million) for the fiscal year ended September 30, 2024, from HK$36.8 million (US$4.7 million) for the fiscal year ended September 30, 2023. The Company achieved the decrease from a reversal of provision for credit loss, while offsetting higher legal and professional fees associated with its initial public offering and being a public company, while also increasing promotional activities and campaigns to penetrate the market.

Losses on the disposal of property and equipment were HK$0.6 million (US$0.1 million) for the fiscal year ended September 30, 2024, compared to HK$0.5 million (US$0.1 million) for the fiscal year ended September 30, 2023.

Our other income decreased by 15.6% to HK$1.2 million (US$0.2 million) for the fiscal year ended September 30, 2024, from HK$1.4 million (US$0.2 million) for the fiscal year ended September 30, 2023. The decrease was mainly due to the decrease in government grants received in relation to COVID-19 to nil for the fiscal year ended September 30, 2024, from HK$0.4 million (US$0.6 million) for the fiscal year ended September 30, 2023.

Income tax expenses decreased by 44.1% to HK$1.3 million (US$0.2 million) for the fiscal year ended September 30, 2024, from HK$2.3 million (US$0.3 million) for the fiscal year ended September 30, 2023. The decrease was mainly due to decrease in income before income tax.

Net income increased by 8.7% to HK$10.7 million (US$1.4 million) for the fiscal year ended September 30, 2024, from HK$9.8 million (US$1.3 million) for the fiscal year ended September 30, 2023, with a net income margin of 6.0% for the fiscal year ended September 30, 2023 and 5.9% for the fiscal year ended September 30, 2024.

Trade receivables, net decreased by 37.5%, to HK$21.9 million (US$2.8 million) as of September 30, 2024, from HK$35.0 million (US$4.5 million) as of September 30, 2023. The decrease of trade receivables was mainly attributable to a general reduction in gross amount of receivables triggered by improving credit collection activities during the fiscal year ended September 30, 2024.

Trade payables decreased by 46.4%, to HK$8.6 million (US$1.1 million) as of September 30, 2024, from HK$16.1 million (US$2.1 million) as of September 30, 2023. The decrease was due to more timely settlement of costs of revenues supported by operating cash inflow.

Inventories increased by 16.4% to HK$47.6 million (US$6.1 million) as of September 30, 2024, from HK$40.9 million (US$5.3 million) as of September 30, 2023. The increase of inventories was mainly due to an increase in work-in-progress since there are more ongoing projects and thus more project costs being incurred and transferred to work-in-progress. The increase is consistent with our business growth and the increase in revenues.

Capital expenditures were HK$3.2 million (US$0.4 million) the fiscal year ended September 30, 2024, compared to HK$1.4 million (US$0.2 million) for the fiscal year ended September 30, 2023, with the increase primarily related to the acquisition of equipment and computer software to meet expected business growth.

For the fiscal year ended September 30, 2024, net cash provided by operating activities was HK$14.1 million (US$1.8 million) with net cash provided by financing activities of HK$25.2 million (US$3.2 million), compared to net cash used in operating activities of HK$13.5 million (US$1.7 million) and net cash used in financing activities of HK$4.8 million (US$0.6 million) for the fiscal year ended September 30, 2023.

The Company had a balance of cash and cash equivalents of HK$52.3 million (US$6.7 million) with working capital of approximately HK$82.1 million (US$10.6 million), as of September 30, 2024.

About SU Group Holdings Limited

SU Group (Nasdaq: SUGP) is an integrated security-related services company that primarily provides security-related engineering services, security guarding and screening services, and related vocational training services in Hong Kong. Through its subsidiaries, SU Group has been providing turnkey services to the existing infrastructure or planned development of its customers through the design, supply, installation, and maintenance of security systems for over two decades. The security systems that SU Group provides services include threat detection systems, traffic and pedestrian control systems, and extra-low voltage systems in private and public sectors, including commercial properties, public facilities, and residential properties in Hong Kong. For more information visit www.sugroup.com.hk.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “we believe,” “we intend,” “may,” “should,” “will,” “could” and similar expressions. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company’s ability to renew contracts with recurring customers; the Company’s ability to secure new contracts; the Company’s ability to accurately estimate risks and costs and perform contracts based on the Company’s estimates; the Company’s relationship with the Company’s suppliers and ability to manage quality issues of the systems; the Company’s ability to obtain or renew the Company’s registrations, licenses, and certificates; the Company’s ability to manage the Company’s subcontractors; the labor costs and the general condition of the labor market; the Company’s ability to compete effectively; the Company’s ability to successfully manage the Company’s capacity expansion and allocation in response to changing industry and market conditions; implementation of the Company’s expansion plans and the Company’s ability to obtain capital resources for planned growth; the Company’s ability to acquire sufficient products and obtain equipment and services from the Company’s suppliers in suitable quantity and quality; the Company’s dependence on key personnel; the Company’s ability to expand into new businesses, industries, or internationally and to undertake mergers, acquisitions, investments, or divestments; changes in technology and competing products; general economic and political conditions, including those related to the security-related engineering services industry; possible disruptions in commercial activities caused by events such as natural disasters, terrorist activities, political, economic, and social instability, and fluctuations in foreign currency exchange rates, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission (the “SEC”), including the Company’s most recently filed Annual Report on Form 20-F and its subsequent filings. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.

(Financial Tables Follow)

SU GROUP HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per share data)

For the Years Ended September 30,

2023

2024

2024

HK$

HK$

US$

Revenues

163,690,966

182,164,539

23,434,647

Cost of revenues

(115,648,013)

(134,568,099)

(17,311,579)

Gross profit

48,042,953

47,596,440

6,123,068

Operating expenses

Selling, general and administrative expenses

(36,805,428)

(36,028,548)

(4,634,910)

Losses on disposal of property and equipment

(485,957)

(636,289)

(81,856)

Income from operations

10,751,568

10,931,603

1,406,302

Other income (expenses)

Other income

1,445,506

1,219,376

156,867

Finance expenses

(55,080)

(189,749)

(24,410)

Other expenses

Total other income, net

1,390,426

1,029,627

132,457

Income before income tax expenses

12,141,994

11,961,230

1,538,759

Income tax expenses

(2,338,850)

(1,307,742)

(168,235)

Net income

9,803,144

10,653,488

1,370,524

Less: Net income attributable to non-controlling interests

(105,775)

Net income attributable to SU Group Holdings Limited’s ordinary shareholders

9,697,369

10,653,488

1,370,524

Net income per share

Basic and diluted

0.81

0.82

0.11

Weighted average number of shares

Basic and diluted

12,000,000

13,027,752

13,027,752

 

SU GROUP HOLDINGS LIMITED

CONSOLIDATED BALANCE SHEETS

As of September 30,

2023

2024

2024

HK$

HK$

US$

Assets

Current assets

Cash and cash equivalents

16,400,123

52,338,132

6,733,065

Trade receivables, net

34,978,153

21,851,480

2,811,094

Inventories

40,919,214

47,613,381

6,125,247

Prepaid expenses and other current assets

1,590,259

5,013,876

645,011

Contract assets, net

3,187,403

6,443,947

828,985

Prepaid income tax

2,066,219

265,810

Total current assets

97,075,152

135,327,035

17,409,212

Non-current assets

Property and equipment, net

8,405,563

8,886,235

1,143,174

Intangible assets, net

144,879

268,500

34,541

Goodwill

1,271,160

1,271,160

163,529

Prepaid expenses and other non-current assets

4,462,823

574,122

Deferred offering expenses

3,853,500

Operating lease right-of-use assets, net

1,113,926

5,496,985

707,162

Investment in key management insurance policy

1,157,520

1,157,520

148,910

Deferred tax assets

1,418,419

207,702

26,720

Total non-current assets

17,364,967

21,750,925

2,798,158

TOTAL ASSETS

114,440,119

157,077,960

20,207,370

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Trade payables

16,104,581

8,625,685

1,109,655

Notes payables

3,503,768

2,355,023

302,963

Other payables

2,633,447

3,499,507

450,196

Accrued payroll and welfare

8,228,964

9,040,942

1,163,076

Operating lease liabilities – current

204,156

1,935,187

248,953

Income tax payable

1,058,040

Contract liabilities

22,748,443

27,801,257

3,576,506

Total current liabilities

54,481,399

53,257,601

6,851,349

Non-current liabilities

Operating lease liabilities – non-current

61,229

3,004,974

386,576

Other payables – non-current

996,069

1,340,016

172,387

Deferred tax liabilities

1,468,575

431,717

55,538

Other liabilities

1,008,306

1,321,956

170,064

Total non-current liabilities

3,534,179

6,098,663

784,565

Total liabilities

58,015,578

59,356,264

7,635,914

Commitments and contingencies

Shareholders’ Equity

Ordinary shares (par value of HK$0.01 per share; 750,000,000 ordinary shares authorized and 12,000,000 and 13,647,500 ordinary shares issued and outstanding as of September 30, 2023 and 2024, respectively.)

120,000

136,475

17,557

Shares subscription receivables

(119,990)

(90)

(12)

Additional paid-in capital

14,642,029

46,260,499

5,951,205

Retained earnings

41,782,502

51,324,812

6,602,706

Total SU Group Holdings Limited shareholders’ equity and total shareholders’ equity

56,424,541

97,721,696

12,571,456

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

114,440,119

157,077,960

20,207,370

 

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SOURCE SU Group Holdings Limited

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Technology

Data Analytics Market to grow by USD 288.7 Billion (2025-2029), the extensive use of modern technology in company operations boosts the market, Report with market evolution powered by AI – Technavio

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NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is driving market transformation – The global data analytics market size is estimated to grow by USD 288.7 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  14.7%  during the forecast period. Extensive use of modern technology in company operations is driving market growth, with a trend towards prevalence of internet and increased use of linked and integrated technologies. However, integration of data from different sources  poses a challenge. Key market players include Alteryx Inc., Amazon.com Inc., Datameer Inc., Dell Technologies Inc., Fair Isaac Corp., Google LLC, Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Mu Sigma, Oracle Corp., Rapidops Inc., Salesforce Inc., SAP SE, SAS Institute Inc., Sisense Ltd., Teradata Corp., ThoughtSpot Inc., TIBCO Software Inc., and Zoho Corp. Pvt. Ltd..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Data Analytics Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 14.7%

Market growth 2025-2029

USD 288.7 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

12.5

Regional analysis

North America, Europe, APAC, Middle East and Africa, and South America

Performing market contribution

APAC at 38%

Key countries

US, Germany, UK, Canada, France, China, Brazil, Japan, India, and South Korea

Key companies profiled

Alteryx Inc., Amazon.com Inc., Datameer Inc., Dell Technologies Inc., Fair Isaac Corp., Google LLC, Hewlett Packard Enterprise Co., International Business Machines Corp., Microsoft Corp., Mu Sigma, Oracle Corp., Rapidops Inc., Salesforce Inc., SAP SE, SAS Institute Inc., Sisense Ltd., Teradata Corp., ThoughtSpot Inc., TIBCO Software Inc., and Zoho Corp. Pvt. Ltd.

Market Driver

The data analytics market is experiencing significant growth with key players like Orbital Insight, Carahsoft Technology Corp, Google, and others leading the way. Orbital Insight provides satellite imagery and data analytics for trade markets, while Carahsoft offers data analytics tools for government agencies and healthcare data research. Google’s TerraScope offers traffic trend and demand forecasting for various sectors including e-commerce, banking, and IT services. Google’s GA4 and Google Ads campaigns provide cross-product access management for advertising and customer service analytics. Data security concerns continue to be a focus with the rise of big data and the use of social media platforms for marketing strategies. Predictive, prescriptive, and descriptive analytics are essential for businesses to gain insights into customer behavior and differentiate from competitors. New business prospects include text analytics, social media, and mobile technology. Real-time security is crucial to prevent data loss incidents and cyberattacks. The market is also seeing opportunities in procurement efficiency, enterprise resource planning, supply chain management, human resource management, database management, and cloud or on-premises solutions. Mobile technology, including internet-connected mobile devices like smartphones and tablets, is driving the consumption of data. Unstructured data and analytical tools are essential for businesses to make informed decisions and improve business processes. The market is expected to continue growing with the increasing use of data analytics in various industries. 

The proliferation of the Internet and advanced Internet services have led to a substantial increase in data generation. Globalization and economic expansion are key drivers of this trend, as more touchpoints emerge and organizations seek to understand consumer behavior. This has resulted in a growing need for data collection and analysis. Consequently, companies are hiring data scientists and analysts to manage and derive insights from their expanding data sets. Additionally, the potential for revenue generation through data analytics is a significant motivator for adoption. 

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 Market Challenges

The data analytics market is experiencing significant growth as businesses and organizations across various industries, including trade markets, healthcare, government agencies, banking, e-commerce, IT services, and more, seek to gain valuable insights from their data. Companies like Orbital Insight and Carahsoft Technology Corp are leading the way with innovative data analytics tools for forecasting trends in industries like trade and traffic. Google, with its GA4 and Google Ads campaigns, offers powerful data analytics capabilities for marketing and customer service. However, challenges persist in managing cross-product access, ensuring data security, and addressing data security concerns, particularly in relation to social media platforms and mobile technology. Big data market trends include the use of predictive and prescriptive analytics, text analytics, and real-time security. New business prospects lie in areas like fraud and security intelligence, data mining, and supply chain management. Data consumption is on the rise, driven by the increasing use of internet-connected mobile devices like smartphones and tablets. Cloud and on-premises solutions offer different advantages, and businesses must consider their specific needs when choosing a data analytics solution. Procurement efficiency and corporate growth are key opportunities for businesses in this market.Businesses today rely on extracting valuable insights from data to make informed decisions, reduce risks, and identify key consumer segments. However, collecting and consolidating data from various sources can be challenging for large corporations. Data exchanges and ecosystems offer solutions by enabling the centralized analysis of acquired data and ensuring data accuracy. The implementation and evolution of these tools vary based on the perceived value of data for different client groups. By utilizing data interchange and ecosystems, companies can effectively manage and leverage their data assets for optimal business performance.

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Segment Overview 

This data analytics market report extensively covers market segmentation by  

Component 1.1 Services1.2 Software1.3 HardwareDeployment 2.1 Cloud2.2 On-premisesGeography 3.1 North America3.2 Europe3.3 APAC3.4 Middle East and Africa3.5 South America

1.1 Services-  In the Data Analytics Market, the Services segment is expected to experience significant growth during the forecast period. This growth can be attributed to the implementation and integration of service-oriented architectures (SOAs), which enable the seamless integration of applications. SOAs characterize services as logical representations of repetitive operations with specific outcomes. These services are self-contained, with interfaces that define how data is communicated. Additionally, the importance of effective customer service cannot be overstated. The Training and Support service segment ensures that employees are equipped with the necessary skills and knowledge to enhance customer satisfaction. This includes roles such as customer service agents, sales engineers, and field service technicians. Furthermore, Consulting services, which provide professional services like implementation, configuration, custom development, and training, contribute to the market’s growth. Overall, these factors underscore the importance of services in the Data Analytics Market.

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Research Analysis

The Data Analytics market is experiencing exponential growth due to the increasing demand for data-driven insights across various industries. This market encompasses solutions for forecasting trends in trade markets, healthcare data, and research analysis, among others. Orbital Insight and TerraScope are notable players in this space, offering advanced analytics tools for traffic trend forecasting and demand forecasting, respectively. Google, with its GA4 and Google Ads campaigns, is a major player in digital advertising and data analytics. Cross-product access management is a crucial aspect of data analytics, ensuring secure access to data for IT services, government agencies, banking, e-commerce, and other sectors. Data security concerns are a top priority, driving the need for advanced data analytics tools and social media analytics for platforms like Google Ads and social media. The big data market continues to expand, fueled by the growing demand for email campaigns, customer service analytics, and e-commerce sector insights.

Market Research Overview

The Data Analytics market is experiencing exponential growth due to the increasing demand for insights from various sectors such as trade markets, healthcare, research analysis, government agencies, banking, e-commerce, IT services, and more. Data analytics tools are being used for forecasting trends in traffic, demand, and consumer behavior, providing valuable insights for advertising campaigns, product promotions, and business processes. The market encompasses various types of analytics including Predictive, Prescriptive, Descriptive, Customer, Data Management, Fraud & Security Intelligence, Data Mining, Data Monitoring, and Text analytics. Mobile technology, including internet-connected mobile devices like smartphones and tablets, is driving new business prospects in the big data market. However, with the increasing consumption of data comes data security concerns. Real-time security measures are essential to prevent data loss incidents and cyberattacks. Cloud and on-premises solutions offer different advantages, and the choice between them depends on the specific needs of the organization. Key market opportunities include cross-product access management, social media analytics, email campaigns, customer service analytics, and enterprise resource planning. Supply chain management, human resource management, database management, and various other business processes are also being transformed through data analytics. Overall, the data analytics market is a dynamic and evolving landscape, offering numerous opportunities for innovation and growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ComponentServicesSoftwareHardwareDeploymentCloudOn-premisesGeographyNorth AmericaEuropeAPACMiddle East And AfricaSouth America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Technology

In-Car Wi-Fi Market to grow by USD 1.79 Trillion from 2025-2029, wide range of data plans for in-car Wi-Fi to suit individual needs boost the market, Report with the AI impact on market trends – Technavio

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NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global in-car wi-fi market size is estimated to grow by USD 1.79 trillion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  96.4%  during the forecast period. Wide range of data plans for in-car wi-fi to suit individual needs is driving market growth, with a trend towards big data platform provided by connected cars. However, consumer reluctance to adopt in-car wi-fi  poses a challenge. Key market players include AB Volvo, Bayerische Motoren Werke AG, BYD Co. Ltd., Chongqing Changan Automobile Co. Ltd., Dr. Ing. H.c. F. Porsche AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., KIA CORP., Mahindra and Mahindra Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., NIO Ltd., Nissan Motor Co. Ltd., Rairdons Subaru of Auburn, Renault SAS, SsangYong Motor Co., Tesla Inc., Toyota Motor Corp., and Volkswagen AG.

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In-Car Wi-Fi Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 96.4%

Market growth 2025-2029

USD 1789262.4 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

75.3

Regional analysis

Europe, APAC, North America, Middle East and Africa, and South America

Performing market contribution

Europe at 49%

Key countries

Germany, UK, US, France, China, Italy, Canada, Japan, India, and South Korea

Key companies profiled

AB Volvo, Bayerische Motoren Werke AG, BYD Co. Ltd., Chongqing Changan Automobile Co. Ltd., Dr. Ing. H.c. F. Porsche AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., KIA CORP., Mahindra and Mahindra Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., NIO Ltd., Nissan Motor Co. Ltd., Rairdons Subaru of Auburn, Renault SAS, SsangYong Motor Co., Tesla Inc., Toyota Motor Corp., and Volkswagen AG

Market Driver

The In-Car Wi-Fi market is booming as consumers and businesses demand seamless connectivity for their digital devices in vehicles. This trend is particularly strong in commercial vehicles for real-time tracking, fleet management, and autonomous driving. AI algorithms and driver preferences are key factors in enhancing customer satisfaction. 5G technology and wireless internet connectivity are driving the market, enabling high-speed online services, mobile hotspots, and connected environments for cars. Hardware components include embedded, tethered, and integrated systems for passenger cars. The market caters to commercial, residential, and government segments, with car manufacturers and tech companies offering connectivity features, infotainment systems, and entertainment. 3G, 4G, and 5G networks, dedicated modems, and cellular networks are essential components. The market offers flexibility, convenience, and reduced latency, but data security and privacy concerns remain. Personalization and data usage guidelines are crucial for customer confidence. Smart cities and intelligent transportation systems are future growth areas, along with vehicle-to-vehicle communication and autonomous driving. 

The automotive industry’s shift towards connectivity presents a significant business opportunity for Original Equipment Manufacturers (OEMs) to create valuable in-car Wi-Fi solutions for customers. Real-time data generated by telematics devices in connected cars is set to expand, providing data on factors like speed, acceleration, deceleration, mileage, fuel consumption, and navigation details. This data, which ranges from 6 MB to 20 MB per customer annually, equates to over 1 TB for 100,000 vehicles, making it a substantial asset for businesses. 

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 Market Challenges

The In-Car Wi-Fi market is growing rapidly as more drivers and passengers demand seamless connectivity for their digital devices. This trend is particularly strong in commercial vehicles, where real-time tracking and fleet management are crucial for business efficiency. However, providing reliable internet connectivity in cars comes with challenges. Seamless connectivity is essential for passenger experience and convenience, especially with the rise of autonomous vehicles and intelligent transportation systems. Hardware components, such as dedicated modems and mobile hotspots, are key to delivering wireless internet connectivity. Car manufacturers and tech companies are investing in 5G technology to provide faster speeds and reduced latency for online services like entertainment, over-the-air software updates, and vehicle diagnostics. The market is segmented into commercial, residential, and government sectors. Commercial segment focuses on fleet management and telematics services, while residential segment caters to passenger cars and personalization. Government segment is essential for smart cities and intelligent transportation systems. However, challenges remain, including data security and privacy concerns, signal coverage in rural areas, and data usage guidelines to maintain customer confidence. AI algorithms and driver preferences are also crucial factors in ensuring customer satisfaction. The future of In-Car Wi-Fi lies in 5G technology, vehicle-to-vehicle communication, and personalized connected environments.In-car Wi-Fi is an emerging technology that raises the question of consumer preference between using their smartphones as hotspots or paying for dedicated in-car Wi-Fi. While both options use the same data, the decision may depend on factors such as convenience and privacy concerns. For Original Equipment Manufacturers (OEMs), prioritizing user needs is crucial to creating a successful in-car Wi-Fi experience. Security and privacy are significant concerns for consumers, and addressing these issues can help boost adoption. OEMs must consider these factors and offer competitive pricing to attract customers to in-car Wi-Fi solutions.

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Segment Overview 

This in-car wi-fi market report extensively covers market segmentation by  

Technology 1.1 3G and 4G1.2 5GApplication 2.1 Residential2.2 CommercialGeography 3.1 Europe3.2 APAC3.3 North America3.4 Middle East and Africa3.5 South AmericaChannelVehicle Type

1.1 3G and 4G-  The in-car Wi-Fi market has witnessed significant growth due to the transition from 3G to 4G networks. The 3G network, introduced in the early 2000s, set the foundation for advanced wireless technologies with features like web browsing, email, and video downloads. The 3G network used UMTS technology and WCDMA air interface, offering faster data rates and more efficient transmissions. However, with the advent of 4G LTE networks, major automotive OEMs, such as General Motors, Ford, Audi, and Porsche, began providing in-car Wi-Fi at faster speeds. The 4G network, based on LTE-advanced-3GPP, offers up to 100Mbps download and 50Mbps upload speeds, reduced latency, and supports a high number of users. LTE technology is preferred over WiMAX in the automotive industry due to its network stability and proven success in the telecom industry. The global in-car Wi-Fi market is expected to continue growing, but the emergence of 5G technology may limit its growth as major vendors like General Motors explore this new technology. By 2024, General Motors aims to provide 5G-enabled vehicles using AT&T’s network.

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Research Analysis

The In-Car Wi-Fi market is experiencing significant growth as consumers and commercial fleet operators demand seamless connectivity for their digital devices in vehicles. This technology enables real-time tracking, fleet management, and improved passenger experience in both personal and commercial vehicles. Artificial intelligence and AI algorithms are being integrated to cater to driver preferences and enhance customer satisfaction. Autonomous vehicles are also expected to benefit from this trend, providing a connected environment for passengers. Mobile hotspots, cellular networks, and dedicated modems are key components of In-Car Wi-Fi systems, while car manufacturers and tech companies continue to introduce new connectivity features. The Internet of Things and infotainment systems are also being integrated to provide entertainment and improve signal coverage for laptops, tablets, and other devices.

Market Research Overview

The In-Car Wi-Fi market is experiencing significant growth as seamless connectivity becomes an essential requirement for digital device users. This technology is increasingly being adopted in commercial vehicles for real-time tracking and fleet management, enhancing driver preferences and improving customer satisfaction. Artificial intelligence and AI algorithms are being integrated to provide personalized experiences for passengers in transportation, making it a key component of smart cities and intelligent transportation systems. Connected cars offer wireless internet connectivity through mobile hotspots, enabling online services such as web surfing, email, and entertainment. The technology is available in various forms, including embedded, tethered, and integrated systems, catering to passenger cars, commercial vehicles, and even autonomous vehicles. 5G technology is revolutionizing the market with reduced latency, faster speeds, and high-quality video capabilities. The market is segmented into commercial, residential, and government segments, with data plans, personalization, flexibility, data security, and privacy concerns being key considerations. The market includes various components, such as dedicated modems, car manufacturers, tech companies, and connectivity features, making it an integral part of the Internet of Things and infotainment systems. The future of In-Car Wi-Fi promises autonomous driving, vehicle-to-vehicle communication, and over-the-air software updates, enhancing the passenger experience and enabling seamless connectivity in rural and urban areas.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

Technology3G And 4G5GApplicationResidentialCommercialGeographyEuropeAPACNorth AmericaMiddle East And AfricaSouth AmericaChannelVehicle Type

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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Technology

Lighting Market set to grow by USD 62.8 Billion from 2025-2029, driven by new developments and product launches, with AI shaping market trends – Technavio

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NEW YORK, Jan. 30, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global lighting market size is estimated to grow by USD 62.8 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  7.4%  during the forecast period. Growing number of developments and lighting product launches is driving market growth, with a trend towards advances in automotive lighting systems. However, sustainability issue in lighting industry  poses a challenge. Key market players include Acuity Brands Inc., ams OSRAM AG, Bridgelux Inc., Dialight Plc, Digital Lumens Inc., Eaton Corp plc, Ennostar Inc., General Electric Co., GrowRay Lighting Technologies, Havells India Ltd., Hubbell Inc., IDEAL INDUSTRIES Inc., Koninklijke Philips NV, LSI Industries Inc., Lumileds Holding BV, Panasonic Holdings Corp., Sharp Corp., SMART Holdings Inc., Syska Led Lights Pvt. Ltd., and Toyoda Gosei Co. Ltd..

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Lighting Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 7.4%

Market growth 2025-2029

USD 62.8 billion

Market structure

Fragmented

YoY growth 2022-2023 (%)

6.4

Regional analysis

APAC, Europe, North America, Middle East and Africa, and South America

Performing market contribution

APAC at 45%

Key countries

US, China, Germany, UK, Japan, India, France, South Korea, Canada, and Italy

Key companies profiled

Acuity Brands Inc., ams OSRAM AG, Bridgelux Inc., Dialight Plc, Digital Lumens Inc., Eaton Corp plc, Ennostar Inc., General Electric Co., GrowRay Lighting Technologies, Havells India Ltd., Hubbell Inc., IDEAL INDUSTRIES Inc., Koninklijke Philips NV, LSI Industries Inc., Lumileds Holding BV, Panasonic Holdings Corp., Sharp Corp., SMART Global Holdings Inc., Syska Led Lights Pvt. Ltd., and Toyoda Gosei Co. Ltd.

Market Driver

The lighting market is thriving with trends in interior designing, photography, and scientific advancements. LED lights are leading the charge, replacing traditional incandescent, CFL, LFL, HID, and halogen bulbs due to their energy efficiency and longer life expectancy. LEDs are not just for houses but also for automotive headlamps, aviation, advertising, and traffic signals. Developing and under-developing nations are adopting solar and off-grid solutions for energy consumption reduction. Effective manufacturers like Signify are introducing energy-efficient luminaires, light control systems, and smart LED bulbs. Urban cities and commercial buildings are implementing smart lighting solutions to reduce electricity costs and promote environmental sustainability. The Biden Harris Administration supports smart cities initiatives to minimize capital costs and logistics inefficiency. LEDs are also used in horticulture, medical devices, and camera flashes. The future of lighting is smart, energy-efficient, and cost-effective. 

Adaptive lighting systems are gaining popularity in both commercial and automotive industries due to their enhanced safety and comfort features. These systems, specifically designed for night driving and low-light conditions, improve visibility around curves and hills by adjusting the beam direction based on steering input. In contrast, standard headlights continue to illuminate the road straight ahead, leaving the side of the road unlit. Additionally, when climbing a hill, adaptive headlamps prevent the beams from pointing upward, ensuring optimal visibility on the road ahead. This technology enhances driving safety and provides a more comfortable driving experience. 

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Market Challenges

The lighting market encompasses various sectors including interior designing, photography, and scientific research. Lighting solutions range from LEDs for houses and commercial buildings to automotive and outdoor applications. Scientists continue to innovate with LEDs for plants and energy-efficient solutions. Developing and under-developing nations face challenges with electricity access and affordability. Effective manufacturers produce luminaires and light control systems, addressing energy consumption and operating costs. Solar and LED technologies offer cost-effective, energy-efficient alternatives, especially in the off-grid solar sector. LEDs replace traditional incandescent, CFL, LFL, HID, and halogen bulbs in general and automotive lighting. Energy costs remain a concern, driving the adoption of smart LED bulbs and outdoor lighting. Real estate, semiconductor, and aviation industries utilize advanced lighting technologies. Energy efficiency and environmental sustainability initiatives, such as the Biden Harris Administration’s focus on smart cities, further fuel market growth. Effective lighting solutions improve urban cities, highways, commercial malls, airports, and various industries like horticulture, medical devices, and advertising. Smart lighting solutions integrate with building automation systems, HVAC, and security for energy savings and improved functionality.The lighting market faces a significant challenge in ensuring sustainability as the demand for environmentally friendly and energy-efficient solutions, such as CFLs and LED lighting, increases. However, the availability of rare earth elements, like those used in Phosphor-based LEDs, is limited, leading to potential price hikes and supply chain disruptions. Addressing this issue is crucial for the continued growth of the lighting industry. Sustainable lighting solutions not only reduce the environmental impact but also offer cost savings in the long run. Companies must work towards finding alternative sources or recycling methods for rare earth elements to mitigate these risks.

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Segment Overview 

This lighting market report extensively covers market segmentation by  

ApplicationType 2.1 LED technology2.2 Traditional technologyGeography 3.1 APAC3.2 Europe3.3 North America3.4 Middle East and Africa3.5 South AmericaProductDistribution Channel

1.1 General lighting –  The general lighting market encompasses various products such as lamps, electronics, consumer luminaires, systems, and professional luminaires and systems. This segment is the largest in the lighting industry, primarily used in residential, commercial, and outdoor applications. Notable companies like Signify NV, OSRAM, and IDEAL INDUSTRIES Inc. Dominate this sector. LED technology, introduced in the 1970s, has significantly impacted the market with its advantages like low maintenance, long lifespan, energy efficiency, and eco-friendliness. The decreasing LED prices further boost its popularity. Developed countries are adopting connected lighting technology, enabling control of fixtures via smartphones, which may lead to new opportunities for growth in the general lighting market.

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Research Analysis

The lighting market encompasses various applications of light in interior designing, photography, and scientific research. LED lights, with their energy efficiency and long lifespan, have revolutionized the industry. Plants thrive under LEDs, making them popular in horticulture. Lighting plays a crucial role in electricity consumption and energy costs, making energy-efficient solutions essential. Scientists continue to explore metals and white light for advanced applications. LEDs dominate automotive headlamps and aviation, while CFL bulbs are phased out. Advertising, traffic signals, medical devices, camera flashes, and lighted wallpapers also utilize specialized lighting. The Biden Harris Administration pushes for energy-efficient lighting through policies. The Color Rendering Index measures light’s ability to reveal colors accurately. CEA systems, LED lighting, building automation, HVAC, security, and smart lighting solutions further expand the market’s scope.

Market Research Overview

The lighting market encompasses various applications, from interior designing and photography to scientific research and automotive industries. LEDs have revolutionized the sector with their energy efficiency and long life span, replacing traditional incandescent, CFL, LFL, HID, and halogen bulbs. Plants and developing nations benefit from solar lighting in houses and off-grid solar sectors. Light control systems and environmental actions reduce electricity consumption. AI and smart lighting solutions optimize energy usage in urban cities, commercial buildings, malls, stores, restaurants, hospitals, schools, parking lots, and real estate. Semiconductors and effective manufacturers offer cost-effective LED fixtures and luminaires, addressing energy problems and environmental degradation. The Biden Harris Administration supports energy efficiency and environmental sustainability initiatives, including smart outdoor lighting, traffic signals, and lighting for bridges and buildings. The market includes various players from the automotive, retail, aviation, advertising, medical devices, and traffic signal industries.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ApplicationTypeLED TechnologyTraditional TechnologyGeographyAPACEuropeNorth AmericaMiddle East And AfricaSouth AmericaProductDistribution Channel

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/lighting-market-set-to-grow-by-usd-62-8-billion-from-2025-2029–driven-by-new-developments-and-product-launches-with-ai-shaping-market-trends—technavio-302363105.html

SOURCE Technavio

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