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Connected Car Market Research Report: By Service (Driver Assistance, Entertainment, Vehicle Safety, Mobility Management, Fleet Management), Technology (2G/3G, 4G/ LTE, 5G), Application (Navigation, Infotainment, Telematics), Connectivity (Embedded, Integrated, Tethered), End Use (OEM, Aftermarket) - Global Industry Analysis and Growth Forecast to 2025

  • Published: July 2020
  • Report Code: AT10574
  • Available Format: PDF
  • Pages: 147

Connected Car Market Overview

The global connected car market was valued at $72,499.2 million in 2019, and it is projected to advance with a CAGR of 24.1% during the forecast period (2020–2025). The growing demand for an enhanced driving experience and introduction of internet of things (IoT) in the automotive industry, along with the increasing concerns for safety and security, are the key growth factors driving the market.

Connected Car Market

Segmentation Analysis

Driver Assistance Is Largest Service Category in Market

The driver assistance category accounted for the largest size in the connected car market in 2019, on the basis of service. This was owing to the increasing adoption of advanced driver-assistance system (ADAS) features, rising safety concerns of the people, and supportive government initiatives in many countries, in terms of policies and incentives. Moreover, many countries have mandated the installation of basic ADAS features in all the new vehicles being sold. For instance, the National Highway Traffic Safety Administration (NHTSA) in the U.S. has mandated the use of electronic stability control (ESC) in all vehicles being manufactured since 2012, which further led to the growth of the category.

5G Is Projected To Be Fastest-Growing Technology Category during Forecast Period

The 5G technology is expected to witness the highest growth rate during the forecast period in the connected car market, when segmented on the basis of technology. The increasing demand for driving-related information in vehicles, as it reduces the latency time and improving the driver’s experience, by providing real-time traffic updates; and growing popularity of better coverage enhancement technologies are the major factors contributing to the growth of the category.

Navigation Is Largest and Fastest-Growing Application Category in Market

In 2019, the navigation category accounted for the largest market size in the connected car market, on the basis of application. The category is further expected to exhibit the fastest growth in the market during the forecast years. Factors such as a rise in the demand for real-time in-vehicle navigation and enhanced optimization with proper journey planning of routes, for the users, are the major contributing factors behind the growth of the navigation category.

Integrated Is Largest and Fastest-Growing Connectivity Category in Market

In 2019, integrated was the largest category in the connected car market, based on connectivity. Furthermore, the category is expected to exhibit the fastest growth during the forecast period and hold the largest share in the market till 2025. This can be ascribed to the increasing demand for high-resolution human–machine interfaces (HMI) in connected cars, improved vehicle management systems, and better communication with the vehicle.

Original Equipment Manufacturer (OEM) Is Larger End-Use Bifurcation in Market

In 2019, the OEM classification held larger share in the end-use segment of the connected car market. Furthermore, the category is expected to continue holding larger share during the forecast period. The reason behind the high demand for these solutions being witnessed by OEMs in the historical period, compared to that being witnessed by the aftermarket, was the prevalent government norms in different countries. Vehicle manufacturers are required to provide built-in technologies in numerous nations around the world.

Geographical Outlook

North America – Largest Region in Industry

North America was the largest connected car market in 2019, because the demand for connected cars is constantly increasing here, due to the rising integration of advanced technologies in passenger cars. Connected cars include smartphone connectivity, roadside assistance, traffic and collision warnings, automobile diagnostics, and real-time traffic updates. Furthermore, the increasing demand for an efficient and safe driving option, increasing research and development (R&D) activities for advanced vehicles, and support from the federal and state governments for the evolution of advanced driving technologies are the major factors fueling the growth of the North American market.

Moreover, the region is the home to several major automobile manufacturers, including General Motors Co., Ford Motor Co., and Tesla Inc., which are proactively involved in the R&D process for the evolution of advanced automotive technology, which further contributes to the region’s domination on the connected car market.

Asia-Pacific (APAC) – Fastest-Growing Regional Market

APAC is expected to witness the fastest growth in the connected car market during the forecast period, owing to the increasing rate of connected device integration in passenger cars and surge in digital services such as cybersecurity and software updates.

Furthermore, the projected increase in strategic alliances between automotive and non-automotive companies in the forecast period, in order to create an enhanced communication infrastructure and meet the government regulations for vehicle data security, is further expected to propel the growth of the connected car market in this region.

Connected Car Market

Trends & Drivers

Emergence of Artificial Intelligence (AI) Is Key Market Trend

The emergence of AI interfaces is being observed as a key trend in the global connected car market. Building upon this technology, automakers are providing AI software in vehicle infotainment systems, which serve as virtual personal assistants with the ability to respond to voice commands and proactively guide the driver with the help of the navigation system. AI is radically guiding the automotive industry toward innovation, thereby increasing the customer satisfaction and enhancing the driving experience.

Connected Car Market

Demand for Enhanced Driving Experience

With the urbanization rate on the rise, the demand for vehicles for personal and commercial uses has also increased significantly. As a result, the world is witnessing a rapid increase in the uptake of vehicles, particularly in developing economies, such as China, India, and Indonesia. This sudden increase in the number of vehicles on the road has led to various problems, such as traffic jams, roadblocks, and scarcity of parking space. With the help of advanced connectivity features, these problems can be tackled to a certain extent, thus resulting in an improvement in the driving experience, which is aiding the growth of the connected car market

Growing Concerns for Safety and Security

The growing concerns for safety and security, among OEMs, end users, and governments, are one of the major factors driving the global connected car market. Technologies such as ADAS, automatic braking, and lane assist, significantly enhance the driving experience, making it safer than before. Such technologies help in reducing traffic rule violations, in turn, causing a decline in road accidents. The penetration of security and safety solutions in new vehicles is on the rise. Stringent safety regulations, coupled with the rising end-user preference for safety features, are expected to drive ADAS and IoT integration, thereby propelling the market in the coming years.

Connected Car Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2025
Base Year (2019) Market Size $72,499.2 Million
Forecast Period (2020-2025) CAGR 24.1%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Company Share Analysis, Companies’ Strategic Developments, Product Benchmarking, Company Profiling
Market Size by Segments By Service; By Technology; By Application Type; By Connectivity; By End Use; By Geography
Market Size of Geographies U.S., Canada, Germany, France, Italy, U.K., Spain, Netherlands, Japan, China, South Korea, Brazil, Mexico, U.A.E.
Secondary Sources and References (Partial List) Organisation Internationale des Constructeurs d'Automobiles (OICA), Society of Automotive Engineers (SAE), Society of Indian Automobile Manufacturers (SIAM), Association for the Advancement of Artificial Intelligence (AAAI), Automotive Parts Manufacturer's Association (APMA), China Association of Automobile Manufacturers (CAAM), Chinese Association for Artificial Intelligence (CAAI), Connected Vehicle Trade Association (CVTA) Note: Above listed references and organizations are partial; the detailed and complete list is available in the final report.

 

Introduction of IoT in Automotive Industry

Since the incorporation of IoT-based technologies in the automotive industry, the face of mobility has changed. IoT is helping OEMs achieve path-breaking results pertaining to the connectivity solutions used in these cars, which is driving the growth of the global connected car market. IoT covers an array of infotainment services and advanced connectivity solutions for drivers. With the rapid incorporation and commercialization of IoT and its related technologies, IoT services have become an integral part of the industry.

Market Players Entering into Partnerships and Collaborations to Gain Competitive Edge

The global connected car market is partially fragmented in nature, with the presence of market players such as DENSO CORP., Delphi Technologies PLC, Valeo SA, ZF Friedrichshafen AG, and Robert Bosch GmbH.

In recent years, players in the industry have entered into a number of collaborations and partnerships, in order to stay ahead of their competitors. For instance:

  • In December 2019, DENSO CORP. collaborated with NTT Communications Corp. in order to begin validating their jointly developed vehicle security operation center (V-SOC) technology, to monitor and analyze a vehicle’s security status, from January 2020 onward. The companies are developing the solution in order to create resilient security solutions for connected cars.
  • In December 2019, Infineon Technologies AG entered into a partnership with Oculii Corp. for the development of an imaging radar software technology for automotive applications. The new radar technology would improve the reliability, safety, and efficiency of connected cars and autonomous vehicles, at an optimized cost.
  • In October 2019, ON Semiconductor Corp. entered into a partnership with Almotive GmbH to develop prototype sensor fusion platforms for automotive applications. Further, the partnership aimed at developing a series of hardware platform demonstrators, combining ON Semiconductor’s high-definition (HD) camera, radar sensor, and pre-processor chipset technologies with Almotive’s advanced AI-based perception algorithm, hardware acceleration, and simulation capabilities.

Connected Car Market

Some of the Key Players in Connected Car Market Include

  • Robert Bosch GmbH
  • DENSO CORP.
  • Valeo SA
  • NXP Semiconductors N.V.
  • Delphi Technologies PLC
  • Infineon Technologies AG
  • TE Connectivity Ltd.
  • Continental AG
  • Panasonic Corp.
  • ZF Friedrichshafen AG

Connected Car Market Size Breakdown by Segment

The connected car market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2025.

Based on Service

  • Driver Assistance
  • Entertainment
  • Vehicle Safety
  • Mobility Management
  • Fleet Management

Based on Technology

  • 2 generation (G)/3G
  • 4G/ long-term evolution (LTE)
  • 5G

Based on Application

  • Navigation
  • Infotainment
  • Telematics

Based on Connectivity

  • Embedded
  • Integrated
  • Tethered

Based on End Use

  • Original Equipment Manufacturer (OEM)
  • Aftermarket

Geographical Analysis

  • North America
    • U.S.
    •  Canada
  • Europe
    • Germany
    • Spain
    • France
    • U.K.
    •  Italy
    • Netherlands
  • APAC
    • China
    • Japan
    • South Korea
  • LAMEA
    • Brazil
    •  Mexico
    • U.A.E.
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