Connected Car Market Statistics, 2027
The global connected car market size was valued at $63.03 billion in 2019, and is projected to reach $225.16 billion by 2027, registering a CAGR of 17.1%.
Connected car facilitates connectivity on wheels offering comfort, convenience, performance, safety, and security along with powerful network technology. This enables the driver to connect with online platforms, thereby facilitating real-time communication. Rise in consumer demand for connectivity solutions, surge in need for constant connectivity, increase in dependency on technology, and upsurge in tech-savvy population are the key factors that contribute toward the growth of the global connected car market. Over time, various connectivity solutions have been developed by car manufacturers and service providers, such as the machine-to-machine (M2M) connectivity platform. This M2M feature in a car enables interconnectivity between two connected cars. The car is equipped with numerous sensors and processors, which provide accurate and real-time information to the driver. This in turn fuels the adoption of connected cars across the globe, thus supplementing the growth of the market.
Factors such as technological advancements, rise in production of vehicles, and increase in demand for luxury & comfort in vehicles are expected to supplement the growth of the market. Moreover, factors such as improvement in global standards for vehicles and high maintenance cost of advanced suspension systems are anticipated to hamper the connected car market growth. However, rise in demand for lightweight suspension system and development of advanced suspension systems are expected to provide a better opportunity for the growth of the market.
By Technology
5G technology is projected as the most lucrative segments
North America is the largest regional market for connected cars industry. The increased production and sales of vehicles across North America has led to the growth of connected car service across North America. Numerous developments have been carried out by connected service providers to offer better and efficient service, which eventually leads to the growth of the market across the region. Leading telecommunication companies are adding more number of connected cars in the network. This helps expand the connected cars network exponentially. For instance, AT&T Intellectual Property, a telecommunication company has added around 2 million connected cars to its network and claims that the company has crossed the milestone of 1 million customers in the U.S.
By Connectivity Solutions
Embedded is projected as the most lucrative segments
Currently the connected car market is in its transition phase. Several automobile manufacturers are switching to 5G enabled connected cars solutions that also offer 3G/4G service depending on the situation. Although 5G supported connected cars devices and services are bit expensive as compared to other devices, but their market is experiencing growth due to fast data transfer speed and increased bandwidth that is offered. Currently, automobile manufacturers are switching from 4G/LTE enabled connected cars solutions to 5G enabled devices. Yet a car with 5G-enabled connection can provide multiple valuable service such as telematics, remote control access, infotainment, GPS tracking, and others. These 5G solutions are easy to use, affordable, and facilitate remote diagnostics of a vehicle that gives it an upper hand in the market.
By Services
Driver assistance is projected as the most lucrative segments
The global connected car market is segmented into technology, connectivity solutions, services, end use, and region. By technology, the market is divided into 3G, 4G/LTE, and 5G. Connectivity solution is categorized into integrated, embedded, and tethered. By service, the market is classified into driver assistance, safety, entertainment, well-being, vehicle management, and mobility management. By end use, it is bifurcated into original equipment manufacturing (OEM) and after market. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By End-use
Aftermarket is projected as the most lucrative segments
The key players analyzed in the global connected car market are Airbiquity Inc., CloudMade, Continental AG, Intellias Ltd., LUXOFT, Qualcomm Technologies, Inc., Robert Bosch GmbH, Sierra Wireless, Tesla, and ZUBIE, INC., AT&T, Audi AG, BMW Group, Daimler AG, Ford Motor Company, Samsung Electronics, Telefonica S.A., TomTom International, Verizon Communications and Vodafone Group Plc.
By Region
Europe would exhibit the highest CAGR of 20.4% during 2020-2027.
Rise in Trend of Connectivity Solutions
Smartphones have changed the definition of connectivity over time. People wish to stay connected with the outer world even while travelling. Now that connectivity has become the need of the hour, automobile manufacturers adopt connectivity solutions in their vehicles to boost their automobile sales. Consumers are expecting their vehicles to perform tasks similar to computers and smart phones.
Adding connectivity solutions in the vehicle has become the top most priority for automobile manufacturers. Many connectivity solutions are integrated in modern cars that require internet service to perform their respective functions. Connectivity can be provided in a car using embedded, integrated, or tethered connectivity solutions. One of these connectivity solutions is used to offer Internet connection to the driver as well as the passengers who travel in the vehicle. An in-car hotspot can be created to provide Internet access to all the devices within the vehicle with the help of a smart phone, modem, or connectivity device. Therefore, rise in trend of connectivity solutions drives the growth of the connected car market.
Ease of Vehicle Diagnosis
Advance diagnostic system is a feature that is expected to boost the connected cars industry growth. In advanced diagnostics, the system in the car will supply data of the vehicle to both the automobile dealer and the customer, which can help predict potential automobile issues before they take place.
In fleet management, it is easy to track vehicle records and decide which vehicle has travelled the most and accordingly offer service with the help of connectivity solutions. The diagnostic service offered is an efficient way to diagnose the status of the vehicles. It allows the consumers to manage the maintenance of their vehicle, thus saving money and time by avoiding unwanted expenses & breakdowns. The system provides a maintenance schedule and timely reminders to the consumer. The diagnostic system keeps a track of the smoke emission and fuel consumption of the vehicles, thereby monitoring its engine health. The diagnostic service sends a detailed report about the vehicle to the decision maker who decides on the service schedules for the automobile. Thus, ease of vehicle diagnosis with the help mobile applications is expected to fuel the connected car market growth.
Lack of Uninterrupted and Seamless Internet Connectivity
The main objective of connected cars is to keep the consumer connected to the outside world. People need a continuous access to the Internet even when they are travelling. Consumers expect their cars to perform tasks similar to their computer or smart phones. Interrupted connectivity may act as a restraint for the connected cars segment as it fails to offer a seamless Internet service. This is mainly due to inconsistency in the network offered by service providers, which varies for different regions.
Intelligent Transportation System
The safety services offered in connected cars are an appropriate example of cutting edge aftermarket technology, which involves sharing data between the vehicle and the humans. Safety is a combination of telecommunication and automobile technology used to improve autonomous vehicle efficiency, reduce fuel consumption & maintenance cost, enhance security & safety measures, and assist the driver to enhance his overall driving experience. Driver assistance system is another feature of the advancedconnected cars that helps the driver find the most appropriate route to reach the destination. It also prompts alert messages regarding traffic jams and parking space availability. All these connected cars features provide intelligent transportation systems, which are designed to improve the overall driving experience.
Key Developments in Connected Cars Industry
- In January 2020, Continental AG launched an online portal named 'Continental Cooperation Portal' for digitally connected vehicle architectures which automate and standardizes software development and integration into the Connected vehicle. In addition it provide a central communication platform for software projects and it can be personally customized according to user's requirement.
- In January 2020, LUXOFT entered into a partnership with Microsoft to boost the delivery rate of connected vehicle solutions and mobility experiences. It offers the features such as advanced vehicle diagnostics, remote access and repair, and preventive maintenance.
- In January 2020, Qualcomm car-to-cloud service introduced by Qualcomm Technologies, Inc. helped automakers keep cockpit and telematics system up-to-date and future-proof vehicles by delivering the flexibility needed to activate features at any time.
- In June 2019, Airbiquity entered into a joint venture with Wing River, a leader of delivering IoT software for critical infrastructure on integrating key technologies and developed an end-to-end software to connect cars with cloud.
- In March 2019, DENSO, world’s second largest mobility supplier invested $5 Million in Airbiquity to boost development of over-the-air (OTA) systems for wirelessly updating automotive software from a remote location.
Key Benefits For Stakeholders
- This study presents analytical depiction of the global market analysis along with the current connected car market trends and future estimations to depict imminent investment pockets.
- The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
- The current market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Connected Car Market Report Highlights
| Aspects | Details |
 By Technology |
|
 By Connectivity Solutions |
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 By Service |
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 By End Market |
|
 By Region |
|
 Key Market Players | LUXOFT, Tesla ZUBIE INC, TELEFONICA, S.A., Sierra Wireless, CloudMade, Continental AG, VERIZON COMMUNICATIONS INC., TOMTOM INTERNATIONAL N.V, Qualcomm Technologies Inc, Airbiquity Inc, DAIMLER AG (MERCEDES-BENZ), Robert Bosch GmbH, AT&T INC, SAMSUNG ELECTRONICS CO. LTD., FORD MOTOR COMPANY, AUDI AG, BMW GROUP, VODAFONE GROUP PLC, Intellias Ltd |
Analyst Review
Connected car refers to a vehicle equipped with features to connect to internet or wireless local area network, which can be used for sharing of data with other devices and vehicles. Moreover, special technologies for internet access are integrated in the car to provide additional benefits such as navigation, vehicle diagnosis, mobility management, and others. The connected car market is in its nascent stage, and is contributing significant revenue for the overall automotive industry. Moreover, the connected car technology has witnessed increase in popularity among end users. In addition to the advantages, surge in its awareness among consumers is expected to lead to rapid growth of the market during the forecast period.
Rise in trend of connectivity solutions, ease of vehicle diagnosis, and increase in need of safety & security are the key factors that fuel the growth of the global connected cars market. However, high likelihood of data hacking and unavailability of uninterrupted & seamless connectivity hinder the market growth.
Among the analyzed geographical regions, currently, North America is the highest revenue contributor in 2019 followed by Europe, Asia-Pacific, and LAMEA. However, during the forecast period, Europe is expected to lead the market in terms of growth rate followed by Asia-Pacific, LAMEA and North America.
Connected car technology are a form of vehicle which have internet access in them. This helps the vehicle to connect to the real world and get the real time data from outside thus leading to the safety of the vehicle.
The connected car market is expected to register a CAGR of 17.1% by 2027 due to the wider adoiption of this technology amongst vehicles.
The sample for connected car market report can be obtained on demand from the website. Also, the 24*7 chat support and direct call services are provided to procure the sample report.
The global connected car market was valued at $63.03 billion in 2019, and is projected to reach $225.16 billion by 2027
The applications of connected car industry includes services such as driver assistance, safety, entertainment, well-being and others thus leading to the wider adoption of connected car service.
Based on the analysis, the service segment is expected to drive the growth of the global connected car market due to the application of different featires such as advanced driving system, vehicle management and mobilitymanagement.
The company profiles of the top market players of connected car market can be obtained from the company profile section mentioned in the report. This section includes analysis of top ten player’s operating in the industry as well as their last three-year revenue, segmental revenue, product offerings, key strategies adopted, and geographical revenue generated.
Factors such as the rise in trend of connectivity solutions and ease of vehicle diagnosis are the factors which are expected to drive the connected car market.
Based on the analysis carried out, Europe is projected to provide a better business opportunity owing to an increased CAGR as compared to other regions..
The key market players profiled in connected car market includes Continental AG, Robert Bosch GmbH, Tesla, Audi AG, BMW Group and others which holds a major market share in the global connected car market.
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