Global Connected Car Market Overview
The key driver impacting the connected car market is technological proliferation and an increase in disposable incomes globally. Considerable advancement in telecommunication technology has presented the population with a high level of connectedness and give rise to vehicle telematics and infotainment technology to offer HD touch screens, varied applications, navigation tools, and high-speed internet on-the-go. The rising disposable income of consumers globally leads to increased demand for superior user comfort, safety, and convenience. For instance, the World Bank report estimations showed in 2014, net national income per capita was 8967.271 USD; it is enhanced to 8865.384 USD,9290.346 USD respectively in 2017 and 2018. Moreover, increased demand for ADAS features in cars contributes to market growth. For instance, Since 2004 EU mandates Anti-lock Braking System (ABS) for all new vehicles sold in the EU, and in 2014 Electronic Stability Control (ESC) became mandatory. Whereas with regards to volume, the market was calculated XX Thousand Units in 2022 and foreseen to grow with a CAGR of XX% during 2023-2030.
According to Value Market Research, the global connected car market size was valued at around USD 54.41 billion in 2022 and is estimated to grow at a CAGR of about 18.35% during the forecast period 2023 to 2030.
The rising government regulations towards mandating enhanced safety features in vehicles worldwide are estimated to augment connected car demand in the forecast period. For instance, Mandatory fitting of Advanced Emergency Braking Systems in commercial vehicles was executed on 1 November 2013 for new vehicle types in European Union. Similarly, In March 2016, the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety declared 99% of U.S. automobile manufacturers agreed to involve automatic emergency braking systems (ABS) as standard on virtually all new cars sold in the U.S. by the year 2022. In India, an autonomous emergency braking system (AEB) could become mandatory on new vehicles by 2022. However, the absence of infrastructure for the proper functioning of connected cars and the risk of unauthorized access to multiple automobile applications may hamper the global connected car market in the long run. Also, the threat of unavailability of seamless internet connectivity globally is negatively impacting the market. The current industry trends, such as the growing popularity of automation in the automotive sector and the development of ride-sharing and mobility services, are expected to provide market players with new market opportunities.
The connected car market is vast, with many local and global players. The connected car market is extensive, with many local and international players. The key leaders follow different strategies to advance their market position, such as amalgamation, contracts, extending product portfolio, product upgrades, and acquisitions, to augment their market share across the globe. For instance, In September 2019, Continental introduced a CoSmA Solution, a digital door opener for Honda e. It is a smartphone-based access solution that allows Honda e owners to open their vehicles or can also share the key with others by using their smartphone. The significant players studied in the report are Continental AG, Robert Bosch GmbH, Visteon Corporation, Harman International, Denso Corporation.
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In this research report, the connected car market is segmented by form type, end market, application, and region.
Analysis by Form Type:
By form type, the report is segmented into embedded, tethered, integrated. The embedded form connectivity dominates the form type segment with a 30% share in 2020. It is due to factors such as rising government mandates, growth of cloud-based services, and cost optimization of service plans. Moreover, huge utilization of embedded connectivity solutions in the car by many connected car services as it is an essential element in a car, for example, eCall and remote diagnostics, thus creating more demands for Embedded form connectivity in the forecast period.
Analysis by End Market:
By end market, the report is segmented into OEM and aftermarket. The OEM dominate the end market segment with a 55% share in 2020. It is due to the expanding technological advancement such as uninterrupted connectivity, cybersecurity, and the development of driverless cars embedded with advanced software. Moreover, the increasing partnership with key players to develop cost-effective and high-quality components drives demands for the OEMs segment in the forecast period.
Analysis by Application:
By application, the report is categorized into vehicle management, driver assistance, mobility management, safety, entertainment, and others. The driver assistance segment dominates the application segment with a 30% share in 2020. It is due to the vast adoption of driver assistance technologies that help progress the actual performance of the vehicle. Moreover, the increase in the introduction of the parking assists and cruise control system across all car segments as it ensures driver convenience and comfort contribute to the driver assistance application segment's growth in the forecast period.
Analysis by Region:
In the regional outlook of the global connected car market, the Europe region dominates with over 25% market share during the forecast period. It is due to the presence of increased vehicle safety and security norms with high technology adoption among consumers. Moreover, the stringent government regulations that mandate the installation of eCall Systems and advanced telematics systems for safety and security purposes in all new vehicles across the European Union contribute to the growth of the market across Europe.
Market Segmentation covered in the Report:
By Technology Type
By Application
- Driver Assistance
- Telematics
- Infotainment
- Others
By Connectivity
- Integrated
- Embedded
- Tethered
By Vehicle Connectivity
- Vehicle To Vehicle (V2V)
- Vehicle To Infrastructure (V2I)
- Vehicle To Pedestrian (V2P)
By Vehicle
- Passenger Cars
- Commercial Vehicle
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
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