- The rising trend of connectivity and digitalization is making the automotive industry to move towards software-and-services approach.
- Asia Pacific is expected to remain the largest and fastest-growing region during the forecast period.
- The embedded form segment to hold the largest share in the connected car market, by form.
The Global Connected Car Market is estimated to be $72.89 billion in 2017 and is projected to reach $219.21 billion by 2025, at a CAGR of 14.8% from 2017 to 2025.
The automotive industry is witnessing fast-paced technological evolution to develop autonomous vehicles in the future and connected car is the stepping stone for self-driving smart cars. Over the decades, automobile manufacturers have focused on the performance, stability, safety, and generally the comfort of the vehicle, but now, with the rising trend of connectivity and digitalization, the automotive industry is moving toward software-and-services approach.
Original equipment manufacturers (OEMs) and Tier I suppliers are constantly developing their product offerings. Companies such as Ford Motor Company (US), General Motors (US), and Volvo (Sweden) are developing modern technologies and installing connected devices in passenger cars.
- Increase in the Demand for Connected Solutions By Consumers
- Creating Value From Data-Driven Services
The connected car offers a wide range of services, such as navigation, cybersecurity, remote diagnostics, emergency calling, multimedia streaming, Over-the-Air (OTA) updates, remote the operation, collision warning, auto parking, and autopilot. With technological advancements in connectivity solutions for the automotive industry, the fast exchange of data would become a reality in the near future.
With the increase in demand for convenient features, and implementation of government mandates to increase the safety of drivers and passengers, many companies are adopting the inorganic growth strategy to develop connected technologies. For instance, in November 2017, Continental announced the successful acquisition of Israel-based cybersecurity company, namely, Argus Cyber Security, to strengthen its capabilities of connected car services with a more secure platform.
Major players profiled in the report are:
- Bosch (Germany)
- Continental (Germany)
- Denso (Japan)
- Delphi (UK)
- Harman (US)
- ZF (Germany)
- NXP (Netherlands)
- Valeo (France)
- Autoliv (Sweden)
- Aisin Seiki (Japan)
- Infineon (Germany)
- Hella (Germany)
- 3(21) Investment Advisor – Fiduciary Services – Flat Fee of $50 / Hour of Consulting
- A beautiful, well-written article that seamlessly promotes your business
- Professional Fiduciary Services – $100 for 2 hours
- Publish 3 Press Releases Over 2 weeks for $21
- Publish 2 Press Releases for $16 – Best PR Deal on the Internet?
- Publish Your Press Release on Google & Communal News for Just $11!
- Social Media Management – Business Brand Basic Package
- 401k Plans Fiduciary Review Services – 4 Hour Consult
- Build 5 Page WordPress Website for only $199
- Excel Spreadsheets & Automation VBA/Macros
Autonomous driving is expected to grow at the highest CAGR in the global connected car market during the forecast period
The connected car technology is the stepping stone for automakers to achieve the goal of launching driverless cars by 2030. Also, carmakers are gradually promoting the market for autonomous cars by first releasing connected and partially automated cars. Autonomous cars sense their surroundings with techniques such as radar, LiDAR, GPS, and other sensors. As of 2017, approximately 25–30 sensors were there in a connected car which is expected to grow more than three-fold by 2025.
In recent years, a few companies have tested automated driving using onboard sensors and high-resolution digital maps (V2N). However, industry experts believe that 5G-based V2V and V2I would allow better adaptation of moving vehicles in accordance with the nearby traffic and offer higher customer satisfaction. Advanced control systems in these cars interpret the sensory information to identify appropriate navigation paths, obstacles, and relevant signage.
The Asia Pacific is expected to hold the largest market size in the connected car market during the forecast period
The Asia Pacific connected car market is estimated to be the largest, in terms of value, during the forecast period. One of the key drivers for the Asia Pacific market is the increased demand for infotainment and navigation services, particularly in China, Japan, and South Korea. The tech-savvy population in these countries demands a better and connected driving experience. China already has some regulations in place in this domain. In 2017, the Chinese Ministry of Industry and Information Technology (MIIT) and the Standardization Administration of China (SAC) issued a draft to establish national standards for China’s Intelligent & Connected Vehicles (ICV).
In Japan, the automotive connected services were developed as early as 1997 when Toyota (Japan) sold its first connected services solution in the country. Additionally, the demand for connected cars in the Asia Pacific is significantly driven by strong economic growth, growing population, and rapid urbanization. Moreover, upcoming emission standards (Bharat Stage VI) in India is likely to impose the installation of onboard diagnostics port in vehicles. This will encourage the growth of connected car in India.
The global market for connected car is segmented by the network, service, transponder, form, end market, hardware, and region. The report discusses various types of features, such as navigation, remote diagnostics, multimedia streaming, on-road assistance, eCall, and auto parking.
The connected services segment is expected to account for the largest market share in the global market, which would grow at a significant CAGR during the forecast period. The growth of connected car services is expected to be driven by an increase in demand for convenient features and an increase in government mandates. Furthermore, to understand the type of end market, the report discusses the global market under 2 distinctive end market types, namely, Original Equipment Manufacturer (OEM) and aftermarket.
To understand the market in different forms, the global market is segmented into embedded, tethered, and integrated; by hardware into the smart antenna, display, Electronic Control Unit (ECU), and sensors; by transponder into the roadside unit and on-board unit; and by network into Dedicated Short-Range Communication (DSRC) and cellular. The extensive study has been done on 4 key regions, namely, Asia Pacific, Europe, North America, and the Rest of the World (RoW).