Connected Cars Market

The global Connected Cars Market is valued at USD 23.9 Billion in 2022 and is projected to reach a value of USD 100.1 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 19.6% between 2023 and 2030.

Premium Insights

A major driver of the Connected Cars market's explosive expansion is the rising consumer desire for cutting-edge automotive technologies. The International Telecommunication Union (ITU) recently released a paper predicting that by 2025, there would be 2 billion Connected Cars worldwide. Other important aspects contribute to this exponential expansion. First off, new cars come equipped with basic features like improved in-car entertainment systems and seamless communication, which are in high demand from customers. Furthermore, blogs and news stories about the sector highlight how the Internet of Things (IoT) is changing the automotive scene by allowing for real-time data analysis and interchange within cars. As a result of the confluence of IoT technology, customer desires, and safety concerns, the market for connected automobiles is expanding, as confirmed by credible industry blogs and reliable organizations like the ITU.

• The rapid advancements in IoT technology and the increasing consumer demand for enhanced safety, entertainment, and connectivity features in vehicles are driving the global Connected Cars market during the projection period from 2023 to 2030.
• The 4G/LTE segment will continue to assert its dominance by technology type, capturing the largest market share globally throughout the forecast period 2023 to 2030.
• In 2022, North America exhibited its market prowess, achieving the highest revenue share of over 30%.
• The Asia Pacific region is poised for remarkable growth, displaying a noteworthy Compound Annual Growth Rate (CAGR) between 2023 and 2030.

Top Market Trends

1. The use of 5G connectivity is one significant current trend in the connected vehicle industry. Car makers are using 5G technology to offer quicker and more dependable in-car connectivity as the technology is being deployed globally. This makes cars more intelligent and responsive on the road by enabling real-time updates for navigation systems, improving over-the-air (OTA) software updates, and supporting cutting-edge technologies like autonomous driving.
2. Data monetization and privacy are two more noteworthy trends. Businesses are looking into ways to monetize the valuable resource of Connected Cars, such as providing targeted advertising and personalized services, due to the growing amount of data these vehicles generate. Regulators have been forced to implement stronger data protection laws in order to secure consumer information; nevertheless, this trend also raises questions about data security and privacy.
3. Advanced Driver Assistance Systems (ADAS) are becoming more and more popular. These systems, which come with functions like automated emergency braking, adaptive cruise control, and lane-keeping assistance, are becoming more advanced and available in linked automobiles. In addition to improving safety, advanced driver assistance systems (ADAS) set the stage for autonomous and semi-autonomous driving. This development will continue to influence the automotive sector in the future.

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Economic Insights

The market for Connected Cars was significantly impacted by the COVID-19 epidemic, both positively and negatively. At first, the market had many difficulties, including a decline in sales and production as a result of supply chain disruptions and lockdowns. The International Energy Agency (IEA) projects a 16% decline in worldwide auto sales in 2020. But the crisis also sped up the car industry's digital revolution, spurring innovation in contactless services, over-the-air (OTA) upgrades, and remote diagnostics. The demand for linked amenities, like in-car entertainment and navigation, increased as a result of this adaptability.

Market Segmentation

The Global Connected Cars Market is categorized into the segments as mentioned below:

The global Connected Cars market can be categorized into Technology Type, Application, Connectivity, Vehicle Connectivity, Vehicle, Region. The Connected Cars market can be categorized into 5G, 4G, 3G, 2G based on Technology Type. The Connected Cars market can be categorized into Driver Assistance, Telematics, Infotainment, Other Applications based on Application. The Connected Cars market can be categorized into Integrated, Embedded, Tethered based on Connectivity. The Connected Cars market can be categorized into Vehicle to Vehicle (V2V), Vehicle to Infrastructure (V2I), Vehicle to Pedestrian (V2P) based on Vehicle Connectivity. The Connected Cars market can be categorized into Passenger Cars, Commercial Vehicle based on Vehicle. The Connected Cars market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Technology

4G/LTE to Witness Significant Market Share Owing to Increased Speed and Dependability

In 2022, 4G/LTE technology is a significant share in the Connected Cars market. Its superiority over 3G and 2G networks stems mostly from its higher speed, bandwidth, and dependability. Advanced in-car services like high-definition entertainment systems, real-time navigation, and over-the-air (OTA) software upgrades depend on 4G/LTE's high data transfer speeds and low latency. Furthermore, 4G/LTE's strong connectivity is essential for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication as the industry moves toward autonomous driving and improved safety systems. This ensures prompt response times and coordination. 4G/LTE is the technology of choice for both manufacturers and consumers because it closely matches the needs of the contemporary connected automobile.

Based on Application

Infotainment Systems to Witness Significant Market Share Owing to Rising Demand for In-Car Connections

The market for Connected Cars will make extensive use of infotainment systems, therefore the infotainment system category had a substantial share in 2022. The increasing demand from consumers for improved in-car connection and entertainment amenities is the reason for this domination. Infotainment systems offer a plethora of entertainment alternatives that modern drivers and passengers find increasingly convenient, including music streaming, movie playback, and smartphone integration. Furthermore, speech recognition and touchscreen interfaces are frequently used in these systems, providing easy-to-use controls. Infotainment systems are essential for improving the whole driving experience because they can also be a central location for smartphone connectivity, real-time traffic data, and navigation. Infotainment systems continue to lead Connected Cars technology and are widely used in the industry as a result of growing consumer expectations for in-car entertainment.

Based on Connectivity

Embedded Systems to Increase their Revenue During Forecast Owing to Widening Security and Dependability

In 2022, the market for Connected Cars makes the most of embedded connectivity. This supremacy is the result of numerous strong factors. Without relying on external devices or cellphones (as in tethered solutions), embedded connectivity provides a seamless and always-on connection by being built directly into the vehicle's systems. More security and dependability are offered by this method, which is essential for vital applications like remote diagnostics and safety systems. Additionally, over-the-air (OTA) services and constant software updates are made possible via embedded connectivity, which improves the vehicle's usability and functionality over time. Ultimately, embedded connectivity offers a solid, comprehensive solution that fits the market's changing requirements for Connected Cars, which helps explain why it is so widely used.

Based on Vehicle Connectivity

V2V Connectivity to Accommodate Higher Market Value Due to Improved Traffic Efficiency and Road Safety Features

In 2022, the most popular choice in the market for linked cars is Vehicle-to-Vehicle (V2V) communication. Its supremacy can be ascribed to the vital part it plays in improving traffic efficiency and road safety. Features including collision avoidance, lane change assistance, and traffic congestion mitigation are made possible via vehicle-to-vehicle (V2V) communication, which enables real-time data sharing between vehicles and adjacent vehicles. It is the foundation of newer technologies like autonomous driving since it allows cars to communicate with one another and make decisions together using shared data. Vehicle-to-vehicle (V2V) communication is more crucial than vehicle-to-pedestrian (V2I) and vehicle-to-infrastructure (V2P) communication because it may immediately reduce accidents and enhance traffic management, making roads safer and more effective for everyone.

Based on Vehicles

Passenger Cars to Sell at the Maximum Value Owing to Increasing Demand

The automobile market uses passenger cars to the fullest extent possible. The reason for this domination is that there are a lot more passenger automobiles on the road than there are business vehicles. In the automobile sector, passenger cars are indispensable since they cater to a wide range of consumers, including families, single drivers, and urban commuters. They serve a variety of purposes, including pleasure travel and daily transportation, and frequently come equipped with cutting-edge technologies that suit the tastes of the user, like entertainment systems and connection. Although passenger automobiles are more common in the market due to their sheer quantity and variety, commercial vehicles are still essential for logistics and the transportation of commodities.

Based on Region

North America to Dominate Global Sales Owing to a Higher Developmental Pace & Increasing Infrastructure

In the market for linked cars, North America is the region with the highest sales volume. Numerous factors contribute to this supremacy. The automobile market in North America is highly developed, and consumers there have a strong desire for cutting-edge technology, including Connected Cars capabilities. Major automakers and IT businesses that are leading the way in this industry are based in the region. Additionally, North America's developed infrastructure, welcoming regulatory framework, and tech-savvy populace all contribute to the high rate of Connected Cars adoption.

On the other hand, the market for linked cars is expanding quickly in the Asia Pacific region. Connected Cars demand is surging as a result of urbanization, rising middle class, and increasing disposable incomes. The adoption of connected automobiles in the Asia Pacific region is also being accelerated by significant investments being made in smart transportation infrastructure by nations like China and Japan.

Competitive Landscape

The market for Connected Cars is highly competitive, with established players like Apple, Tesla, and Google's Waymo going up against tech titans like General Motors, Volkswagen, and Toyota. These businesses are fighting for market share in a variety of categories, such as Connected Cars entertainment and autonomous driving. Several firms that focus on specialized fields like data analytics and cybersecurity are also joining the competition. Because of the intense competition, businesses are collaborating and innovating to provide complete, state-of-the-art solutions that satisfy the changing needs of consumers who own linked cars.

The key players in the global Connected Cars market include - CloudMade (UK), TOMTOM International N.V. (Netherlands), Ford Motor Company (U.S.), LUXOFT (Switzerland), BMW Group (Germany), AT&T Inc. (U.S.), Vodafone Group PLC (UK), Airbiquity Inc. (U.S.), Samsung Electronics Co. Ltd. (South Korea), Verizon Communications Inc. (U.S.), Robert Bosch GmbH (Germany), Intellias Ltd. (U.S.), Continental AG (Germany), Sierra Wireless (Canada), Daimler AG (Mercedes-Benz) (Germany), Qualcomm Technologies Inc. (U.S.), AUDI AG (Germany), TELEFONICA S.A. (Spain), Tesla Zubie Inc. (U.S.) among others.

Recent Market Developments

• Modern fleet management solutions are being offered by LEVC (London Electric Vehicle Company) on its class-leading electric TX taxi and VN5 van as part of a new partnership that was announced in May 2022 with Geotab, a global leader in IoT and connected transportation.
• Mahindra & Mahindra and Robert Bosch GmbH partnered in August 2022 to build a connected vehicle platform. This collaboration supports the expansion and enhancement of the connected vehicle platform.
• Google and Ford Motors struck a strategic cooperation in February 2021 to develop Connected Cars service applications. The Connected Cars business at Ford Motor Company benefits from this relationship.

Segmentation of the Global Connected Cars Market