The introduction of internet of things (IoT) in the global automotive industry, coupled with the rising need for an advanced driving experience, as well as the growing quest for a safer driving option, has contributed to the growth of the global connected car market. Due to these factors, the market is expected to generate $198,459.7 million revenue by 2025, advancing at a CAGR of 24.1% during the forecast period (2020–2025).
Mobility Management To Exhibit Fastest Growth in Market during Forecast Period
On the basis of service, the connected car market is categorized into driver assistance, entertainment, vehicle safety, mobility management, fleet management, and others. Among these, during the forecast period, the mobility management category is expected to observe the fastest growth. This is attributed to the increasing adoption of shared mobility services, including ride-hailing, ride-sharing, carsharing, and two-wheeler sharing. These services require vehicles with greater operational efficiency, greater usage of internet of things (IoT)-based services, improved vehicle tracking and road safety features, and enhanced vehicle management capabilities, which are highly reliant on connected car solutions.
Further, on the basis of end use, the connected car market is categorized into original equipment manufacturer (OEM) and aftermarket. Of the two, although the integration of connected cars solutions by OEMs is higher at present, during the forecast period, the integration rate of such solutions via aftermarket companies is expected to exhibit faster growth. This is because connected car solutions are currently at an early stage of adoption, and the replacement/updation demand has not matured yet. However, owing to the high demand for retrofitting connected car solutions into the existing vehicles, along with the increase in the requirement for replacement and updation in the coming years, the integration of such solutions by aftermarket entities is expected to surge at a higher rate.
Geographically, the connected car market is expected to witness the fastest growth in the Asia-Pacific (APAC) region during the forecast period. This is buoyed by the technological advancements being carried out in countries such as China, Japan, and South Korea. China is one of the leading producers of connected cars in the world, owing to its new technology development initiatives aimed at connected cars, change of government safety rules and regulations for vehicles, and increasing production capacity of passenger car manufacturers.
Partnership Is Strongest Strategic Measure Taken by Players in Market
Players in the connected car market are building partnerships with each other to enhance their market presence. For instance, in September 2019, DENSO CORP. entered into a partnership with BlackBerry Ltd. in order to develop connected mobility solutions. Furthermore, under the partnership, the companies had looked forward to jointly launching Harmony CoreTM, which is an integrated human–machine interface (HMI) digital cockpit system. This digital cockpit solution would use the QNX Hypervisor technology of BlackBerry Ltd., in order to enable integrated control over in-vehicle HMI systems.
Similarly, in September 2019, Otonomo Technologies Ltd. partnered with Microsoft Corp. in order to develop Microsoft Corp.’s connected vehicle platform. The companies intend to together improve the services offered through the platform, such as emergency response, mapping, on-demand fueling, parking, predictive maintenance, usage-based insurance, media measurement, and in-vehicle package delivery. Furthermore, under the partnership, Microsoft Corp’s connected vehicle platform would be adopted to plug the connected car data into Otonomo Technologies Ltd.’s existing ecosystem.
Browse report overview with detailed TOC on "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" at:https://www.psmarketresearch.com/market-analysis/connected-car-market
Some of the major players operating in the global connected car 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.