Valued at $51.9 billion in 2017, the global connected car market is projected to surpass $156.1 billion by 2023, growing with a CAGR of 20.7% during the forecast period. Among all products and services, wireless and cellular modules are predicted to be the leading category during the forecast period.
The market for wireless and cellular modules is projected to dominate the connected car market, majorly due to the increasing demand for better operational efficiency of automobiles and enhanced automobile tracking and road safety features, surging usage of internet of things (IoT)-based services in vehicles, need for improved vehicle management, and rising government regulations to advance the overall vehicle performance.
Potential Growth Opportunities in the Developing Economies
The developing economies of the world, such as China, India, and Indonesia, present lucrative opportunities to the key players in the connected car market. These nations have witnessed a significant rise in the living standards, owing to an increase in the disposable income. The growth opportunities for the connected car industry are less explored or unexplored in these countries. In 2017, China had approximately 12 million cars with in-car connectivity and internet access, and it is expected that more than 45 million people will start using connected cars by 2023. This growing demand for in-vehicle connectivity has increased the uptake of connected vehicles in the Asia-Pacific (APAC) region. Consumers are ready to pay for sophisticated technology; thus, it can be said that the developing economies present lucrative growth opportunities to the key players in the connected car industry.
Growing Concern for Passenger Safety and Security is Boosting the Market Growth
The growing concern for passenger safety and security among original equipment manufacturers (OEM), end users, and governments is one of the major factors driving the connected car market. Technologies such as advanced driver-assistance system (ADAS), automatic braking, and lane assist significantly enhance the driving experience and make the vehicles safer than ever. Such technologies help in reducing traffic rule violations, in turn, causing a decline in road accidents. The penetration of advanced security and safety solutions in new vehicles is on the rise. Stringent safety regulations, coupled with the end user preference for safety features, are expected to support the penetration of ADAS and IoT in vehicles, thereby driving the connected car market in the coming years.
Segmentation Analysis of Connected Car Market
The integrated connectivity category dominated the connected car market in 2017, and it is predicted to continue its domination during the forecast period. In May 2018, London-based Laird launched its first completely integrated ‘‘connected car’’ platform for automakers, globally. This integrated platform is expected to improve the consumer experience by permitting an array of services, diagnostics for maintenance, theft protection, over-the-air (OTA) updates, and vehicle location and result in increased operational efficiencies for the end users.
Based on technology, the 4G/LTE category is projected to grow at the fastest pace in the connected car market, during the forecast period. The 4G/LTE technology permits consumers to quickly download files over a wireless network and provides enhanced voice quality, ease in the usage of instant messaging (IM) and social networks, streaming media, and video calling, and higher bandwidth. The 4G technology is approximately 10 times faster than the 3G technology. These factors are expected to increase the market share of the 4G/LTE network technology in the forecast period.
Geographical Analysis of Connected Car Market
Geographically, APAC is expected to be the fastest growing region in the connected car market during the forecast period. The growth of the APAC connected car industry is mainly driven by China and Japan. The latter is one of the leading producers of connected cars in the world, owing to the development of new technology, change of government rules and regulations for vehicle safety, and increasing production capacity of passenger car firms. Several automotive manufacturers in the APAC region, such as Nissan, Toyota, and Honda, are also among the leading players in the worldwide market.
Browse report overview with 67 tables and 38 figures spread through 122 pages and detailed TOC on "Connected Car Market by Products & Services (Fleet Manager, Wireless & Cellular Modules, OEM Services, Aftermarket Services, Processors, Sensors), by Connectivity (Integrated, Embedded, Tethered), by Technology (3G, 4G, 2G), by Application (Navigation, Infotainment, Telematics), by Geography (U.S., Canada, Mexico, Germany, France, U.K., Italy, Spain, Netherlands, China, Japan) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/connected-car-market
Competitive Landscape of Connected Car Market
The global connected car market is highly consolidated, with the dominance of certain major players, such as DENSO Corporation, Delphi Technologies PLC, ZF Friedrichshafen AG, and Valeo SA. Other significant players include Robert Bosch GmbH, Continental AG, Harman International Industries Inc., and Autoliv Inc.
To gain a competitive edge over other players in the connected car market, companies are launching new products, working in partnerships, and undertaking geographical expansions. For instance, in June 2018, Sprint and NXM Labs launched the first 5G-ready connected car platform, integrating high-speed, on-demand passenger Wi-Fi with innovative vehicle health monitoring and safety features; the platform also has IoT blockchain security. Furthermore, in April 2018, Valeo SA and NTT Docomo, a mobile operator based in Japan, partnered to bring their expertise and solution together, to provide telecom services and on-board connectivity equipment for connected cars. These includes next-generation mobility services in the area of 5G wireless network systems, vehicle-to-everything (V2X) communication, and digital services for cars via smartphones.
Global Connected Car Market Segmentation
By Products and Services