Connected Car Market

GMI Research analysis indicates that the Connected Car Market size was estimated at USD 83.3 billion in 2022 and is slated to register a double digit CAGR of 19.5% over the period 2023-2030 and is projected to reach USD 346.4 billion in 2030.

What is connected car?

A connected car is a type of car, which can be connected to the internet to communicate bidirectionally, with other systems outside of cars. It offers advanced security features and allows remote operations of vehicle functions.

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Major Connected Car Market Market Drivers

Primary factors driving connected car market are increasing demand for Advanced Driver Assistance Systems (ADAS) features in vehicles, rise in the sales of high-end luxury cars, growing need for automation in the automotive sector and developments in the 5G infrastructure and adoption of Artificial Intelligence (AI). Improvements in the road infrastructure and rapid increase in car ownership rates, are creating concerns related to road safety. In majority of accidents, driver error is cited as a cause of accident, which is pushing the demand for increase safety features in cars. Governments in developing and developed countries, are making policies for mandating automotive companies to add ADAS and safety features in vehicles. For instance, European Union (EU) launched Vehicle General Safety Regulation in July 2022, which makes it mandatory for all automotive companies to incorporate a range of advanced driver assistance systems for new vehicles, to improve road safety. As per recent estimates, India surpassed Japan to become the largest automotive market in 2022. Indian government is formulating strategies to make the installation of ADAS features like Electronic Stability Control (ESC) and Automatic Emergency Braking (AEB), mandatory in all new cars by 2022-2023. Such trends are expected to create lucrative growth opportunities for connected car market in the future.

Developments in the 5G infrastructure, will positively influence the automotive connected car platform market. As per International Automotive Association’s report, majority of the accidents can be avoided with the deployment of 5G networks. Sales volume of 5G connected cars is expected to increase in China, due to increasing investments by state owned telecom operators for supporting 5G ecosystem in the country. For instance, state owned companies of China namely, China Telecom, China Mobile and China Unicom, will spend around USD 184 billion for the development of 5G networks by the end of 2025. Furthermore, as the usage of sensors and data technologies is increasing, AI will facilitate level 3 autonomous driving. Besides, advancements in connected cars technology, cybersecurity concerns have emerged out as major challenge for automotive companies. Connected cars are vulnerable to data breaches, attackers are coming advanced hacking tools to hijack infotainment systems in cars, which are connected to mobile data network coupled with limited mobile connectivity on highways in developing countries, are hampering the growth of connected cars market.

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According to connected cars market research report, Auto Parking / Connected Parking segment is estimated to grow at the fastest rate.

Currently, the auto parking/ connected parking has low penetration in the market. Connected cars with auto parking features are restricted to only high-end vehicles. Partnerships between companies for developing these types of vehicles, is driving the segment’s growth. Globally, these types of vehicles are popular in North American and European region. With increasing investments by governments in Asia-Pacific in smart city projects, its demand will rise in the region in coming few years.

Based on Form, Embedded segment is projected to hold the largest connected car market share.

Suge in the demand for cloud-based services, growing popularity of vehicles with built-in embedded connectivity and availability of cost-effective service plans, are some of the factors accelerating the segment’s growth. Embedded connectivity enables eCall and remote diagnostics in cars. In addition, many governments worldwide are implementing regulations to mandate the embedded form of connectivity in vehicles, which is projected to have a positive impact on segment’s growth.

End Market: Segment Analysis

Aftermarket services are gaining traction in the connected car industry as allows consumers to customize their vehicles and add new technologies, which are propelling the segment’s growth.

Network: Segment Analysis

Cellular segment is propelled by the emergence of 5G cellular communication for developing Vehicle-to-Everything (V2X) communications. V2X enables communication between elements like roadside, infrastructure, and networks, which facilitates autonomous driving experience to consumers. 5G networks are expected to play a critical role in the connected cars due to lower latency and high throughput offered by these networks.

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As per connected car market forecast, Asia-Pacific region is expected to expand at the fastest CAGR

Asia-Pacific connected car market is driven by growing concerns related to vehicle’s safety, integration advanced technologies like Artificial Intelligence (AI), Internet of Things and 5G, penetration of smartphone connectivity and rising popularity of shared mobility and ride-hailing services. The Japanese shared mobility market was estimated to be around 263 billion Japanese yen during fiscal year 2022, this figure is expected to increase by 119% in the coming 5-6 years, which will create growth opportunities for the connected cars market in the region. India connected car market is driven by growing demand for fuel efficient vehicles and government regulations related to connected technology in cars.

Top Market Players

Various notable players operating in the connected car market are Continental AG, Robert Bosch GmbH., Airbiquity Inc., Cloudmade, Tesla, Ford Motor Company, AT & T, Qualcomm Technologies, Inc., TomTom International BV., and Sierra Wireless among others.

Key Developments:

• • In August 2022, MG motor announced that it will launch its new Gloster SUV, which will be equipped with safety features. This car will further offer comfort features like driver seat message function and large touchscreen infotainment systems.
  • In February 2022, Herman, an audio electronics company launched HARMAN Savari MECWAVE, which is a multi-access edge compute (MEC) software platform, which is designed to help mobile network operators and to deliver ultra-low latency applications on edge computing infrastructure.
  • In January 2020, Continental AG, a German automotive parts manufacturing company, successfully launched an online portal to automate and standardize software development and integration in the vehicles.

Segments Covered in the Report:

The Global Connected Car market has been segmented based on Service, Form, End Market, Hardware, Transponder, Network, and Key Region. Based on Services, the market is segmented into Operational Data, Navigation, Remote Diagnostics, Multimedia Streaming, Social Media & Other Apps, Ota Updates, On-Road Assistance, E-Call & Sos Assistance, Cybersecurity, Remote Operation, Collision Warning, Auto Parking/Connected Parking, Autopilot, Home Integration, Vehicle Management and Asset Tracking. Based on Form, the market is segmented into Operational Data, Embedded, Tethered and Integrated. Based on End Market, the market is segmented into Original Equipment Manufacturer (OEM) and Aftermarket. Based on Hardware, the market is segmented into Head Unit, Central Gateway (CGW), Intelligent Antenna, Electronic Control Unit (ECU), Telematic Control Unit (TCU), Keyless Entry Systems and Sensors. Based on transponder, the market is segmented into Onboard Unit and Roadside Unit. Based on Network, the market is segmented into Operational Data, Dedicated Short Range Communication (DSRC) and Cellular.

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Market Segmentation:

Global Connected Car Market by Service

• • Operational Data
  • Navigation
  • Remote Diagnostics
  • Multimedia Streaming
  • Social Media & Other Apps
  • Ota Updates
  • On-Road Assistance
  • E-Call & Sos Assistance
  • Cybersecurity
  • Remote Operation
  • Collision Warning
  • Auto Parking/Connected Parking
  • Autopilot
  • Home Integration
  • Vehicle Management
  • Asset Tracking

Global Connected Car Market by Form

• • Operational Data
  • Embedded
  • Tethered
  • Integrated Convenience Stores

Global Connected Car Market by End Market

• • Original Equipment Manufacturer (OEM)
  • Aftermarket Tethered

Global Connected Car Market by Hardware

• • Head Unit
  • Central Gateway (CGW)
  • Intelligent Antenna
  • Electronic Control Unit (ECU)
  • Telematic Control Unit (TCU)
  • Keyless Entry Systems
  • Sensors

Global Connected Car Market by Transponder

• • Onboard Unit
  • Roadside Unit

Global Connected Car Market by Network

• • Operational Data
  • Dedicated Short Range Communication (DSRC)
  • Cellular Roadside Unit

Global Connected Car Market by Region

• • North America Connected Car Market (Option 1: As a part of the free 25% customization)

    • By Service
    • By Form
    • By End Market
    • By Hardware
    • By Transponder
    • By Network
    • United States of America (US) Market All-Up
    • Canada Market All-Up

  • Europe Connected Car Market (Option 2: As a part of the free 25% customization)

    • By Service
    • By Form
    • By End Market
    • By Hardware
    • By Transponder
    • By Network
    • United Kingdom (UK) Market All-Up
    • Germany All-Up Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Connected Car Market (Option 3: As a part of the free 25% customization)

    • By Service
    • By Form
    • By End Market
    • By Hardware
    • By Transponder
    • By Network
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Connected Car Market (Option 4: As a part of the free 25% customization)

    • By Service
    • By Form
    • By End Market
    • By Hardware
    • By Transponder
    • By Network
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating the Connected Car (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Continental AG
  • Robert Bosch GmbH.
  • Airbiquity Inc.
  • Cloudmade
  • Tesla
  • Ford Motor Company
  • AT & T
  • Qualcomm Technologies, Inc.
  • TomTom International BV
  • Sierra Wireless