Connected Car Market Outlook 2031
The global connected car market size was valued at USD 28.08 Billion in 2022 and is expected to reach USD 134.38 Billion by 2031, expanding at a CAGR of 19% during the forecast period, 2023-2031. Connected cars are vehicles that are linked to tablets and smartphones and have internet access, as well as the ability to optimize their operations on a regular basis.
Through the network connection, it can share content with a variety of devices both inside and outside the car. A connected car provides connectivity on wheels by providing comfort, performance, convenience, security, and safety, as well as sophisticated network technologies.
The data from the vehicle is shared using RADAR, LiDAR, and advanced sensors. This enables the vehicle to share and access data, download patches and software, communicate with other Internet of Things (IoT) devices, and provide Wi-Fi to passengers onboard. This allows the driver to connect to web networks, allowing for real-time communication.
Connected cars can communicate not only with services and people but also with one another and with road infrastructure. The primary goal of connected vehicle adoption is to avoid collisions, reduce fatalities, and improve vehicle management efficiency.
Connected Car Market Trends, Drivers, Restraints, and Opportunities
- Increased demand for customers’ safety, comfort, luxury, and convenience drive the market.
- Technological innovations and increased vehicle production boost the market.
- Increased government efforts to develop intelligent transportation systems, as well as rising demand for smartphone features in automobiles, are expected to boost the market.
- Increasing occurrences of vehicle theft are the major factors driving the market.
- Rising ADAS adoption features to reduce the number of car accidents in order to prevent deaths and injuries is estimated to boost the market.
- Improvements in global vehicle standards, as well as the high maintenance costs of advanced suspension systems, are expected to stymie the growth of the market.
- Lack of infrastructure required for connected cars to function properly is estimated to hinder the market growth.
- Rising demand for lightweight suspension systems, as well as development of advanced suspension systems are expected to provide lucrative opportunities for market growth.
- Emergence of various technologies such as AI and 5G is predicted to provide lucrative opportunities for market expansion.
Scope of Connected Car Market Report:
The report on the connected cars market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.
Connected Car Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Services (Entertainment, Driver Assistance, Mobility Management, Safety, Vehicle Management, and Well-Being), Forms (Integrated, Tethered, and Embedded), Networks (Cellular and Dedicated Short Range Communication), Technology (3G, 4G/LTE, 5G, Bluetooth, Satellite, and Wi-Fi), Transponders (Roadside unit and On-board unit), Vehicle Types (BEV, PHEV, and FCEV), End-users (Aftermarket and Original Equipment Manufacturer), Communication Types (Vehicle to Vehicle and Vehicle to Infrastructure)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Audi; Ford Motor Company; Continental; HARMAN; Visteon; Cloudmade; Intellias; AT&T; Bosch; Qualcomm; TomTom; Tesla; Airbiquity; Daimler AG; and Sierra Wireless
Connected Cars Market Segment Insights
Services Segment Analysis
Based on services, the connected cars market can be segmented into entertainment, driver assistance, mobility management, safety, vehicle management, and well-being. The driver assistance segment is projected to hold significant market share.
The advanced driver assistance system includes technologically advanced features such as adaptive cruise control, 360-degree camera, park assist, lane keep assist, and others that improve vehicle safety. Various governments around the world have imposed stringent safety standards on automakers. These factors are driving the market.
Forms Segment Analysis
On the basis of forms, the market can be divided into integrated, tethered, and embedded. The embedded segment is anticipated to account for a substantial share, due to the growing preference for embedded solutions to achieve greater safety.
The long-term growth of embedded connected solutions can be attributed to a variety of disruptive factors, including cost optimization of service plans, government mandates, and the expansion of cloud-based services. Growing number of automakers are rapidly adopting embedded connectivity solutions, such as remote diagnostics and eCall, to meet regulatory compliances, which is boosting the segment.
Networks Segment Analysis
In terms of networks, the connected cars market can be bifurcated into cellular and dedicated short range communication. The cellular segment is projected to expand at a rapid pace in the coming years, owing to increased investment in the global deployment of the 5G network several connected cars are also using cellular networks for V2V connection, in-car WiFi, hotspot, emergency response, and other functions, which are expected to drive the segment.
Technology Segment Analysis
Based on technology, the market can be segregated into 3G, 4G/LTE, 5G, Bluetooth, satellite, and Wi-Fi. The 5G segment is estimated to register a substantial growth rate during the forecast period. Several telecommunication firms are working on advanced 5G networks to improve communication between external devices and connected vehicles, which drives the segment.
Tranponders Segment Analysis
On the basis of transponders, the connected car market can be split into roadside unit and on-board unit. The on-board transponder segment is expected to expand at a high CAGR in the near future. Vehicles are outfitted with onboard transponder units to support connected car solutions.
Previously, an onboard unit was used to track the location and speed of vehicles using GPS sensors. It can now record data from multiple sensors and transmit it to other entities such as vehicles and transportation infrastructure via a remote server.
Vehicle Types Segment Analysis
In terms of vehicle types, the market can be fragmented into BEV, PHEV, and FCEV. The PHEV segment is anticipated to hold significant market share. The demand for battery electric vehicles is growing as governments and private companies plan to build a network of charging infrastructure to support the use of green energy. The falling prices of these vehicles are expected to boost the demand in the near future.
End-users Segment Analysis
Based on end-users, the connected car market can be segmented into aftermarket and original equipment manufacturer. The original equipment manufacturer segment is estimated to account for a substantial share. Increasing technological advances, such as cybersecurity, continuous connectivity, and advancement of driverless vehicles combined with highly secure software, are anticipated to support OEM dominance during the projected timeline. Increasing partnerships with key players to develop cost-effective and high-quality components is another factor driving the OEM market.
Communication Types Segment Analysis
On the basis of communication types, the market can be bifurcated into vehicle to vehicle and vehicle to infrastructure. The vehicle to vehicle segment is projected to grow at a robust pace during the forecast period.
Vehicle-to-vehicle communication reduces traffic congestion in major cities, increases occupant comfort, and improves road safety. Wireless technology advancements and increased use of advanced equipment such as GPS and sensors in V2V systems are projected to drive the market during forecast period.
In terms of regions, the connected car market is categorized as Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. Asia Pacific is expected to dominate the market.
One of the key trends driving the demand for advanced connected car features is the emergence of autonomous vehicle technology. Japan has one of the major levels of connected car penetration in the world, with China expected to see significant growth in the coming years.
- Driver Assistance
- Mobility Management
- Vehicle Management
- Dedicated Short Range Communication
- Roadside unit
- On-board unit
- Original Equipment Manufacturer
- Vehicle to Vehicle
- Vehicle to Infrastructure
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Ford Motor Company
- Daimler AG
- Sierra Wireless
Key players in the connected car market include Audi; Ford Motor Company; Continental; HARMAN; Visteon; Cloudmade; Intellias; AT&T; Bosch; Qualcomm; TomTom; Tesla; Airbiquity; Daimler AG; and Sierra Wireless.
These players have actively engaged in several market development activities including collaborations, agreements, mergers & acquisitions, production capacity expansion, new product launches, and partnerships to increase their market share.