The global connected car market size is expected to advance at a CAGR of 18.3% during 2022–2030, to reach $245,739 million by 2030.
This market growth is ascribed to the growing concern for safety and security in cars, such as anti-lock braking systems, door open warnings, and lane change assistance. Numerous OEMs’ cars are being integrated with ADAS features due to the rising the awareness of customers on driving comfort and safety and government rules for the same.
The integrated connectivity category is expected to be the fastest growing throughout the projection period. This type of connectivity is cost-efficient and gives unlimited data transferring options, unlike other systems. Various major players across the world are partnering to build enhanced integrated connectivity systems for cars. Along with this, the demand for this kind of connectivity is also rising because of the advent of high-resolution human-machine interfaces (HMI) in connected cars and the growing demand for better in-vehicle communication and vehicle management systems.
North America accounted for the largest market share in 2022 due to the increasing demand for advanced technologies in passenger vehicles and connected cars. Connected cars are equipped with ADAS, anti-lock braking systems, smart infotainment systems, traffic and collision warnings, automobile diagnostics, and real-time traffic update features. In essence, rising implementation of rules by national and state governments for mandating the installation of enhanced and the surging need for a safe and secure driving experience driving technologies are pushing the growth of the market in the region.
Moreover, this region is home to several top automobile manufacturers, such as Tesla Inc., Ford Motor Co., and General Motors Co., which are involved in extensive R&D on advanced automotive technologies.
Emerging economies, such as China, India, and Indonesia, present lucrative opportunities for the key players in the market. These countries have witnessed a significant improvement in the living standards of the inhabitants, owing to the increase in their disposable income. The people of such countries are ready to spend a significant share of their income on improvements in their lifestyle, including products based on the latest technologies. Thus, the growing income has increased the uptake of connected vehicles in the APAC region.
The introduction of connected cars in the MaaS model is serving as a huge opportunity for the growth of the market players. This is because the transportation sector has witnessed unprecedented innovation and growth across the world. MaaS has become a crucial aspect of public transportation. Moreover, connected cars are expected to be deployed more in public mobility services as against public ownership. This can be attributed to the fact that such vehicles will offer mobility services at lower costs, on account of their higher expected utilization rate as compared to other mobility services. Therefore, vehicle manufacturers and technology companies are focusing on the deployment of these connected vehicles in public mobility services.
Some of the major players operating in the market are Robert Bosch GmbH, DENSO CORP., Valeo SA, NXP Semiconductors N.V., Delphi Technologies PLC, Infineon Technologies AG, TE Connectivity Ltd., Continental AG, Panasonic Corp., and ZF Friedrichshafen AG.