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Connected Car Market Overview
The Global Connected Car Market is expected to garner $141 Billion by 2020, registering a CAGR of 32.7% during the forecast period 2014‐2020. Connected cars facilitate connectivity on wheels offering comfort, convenience, performance, safety, and security combined with powerful network technology. This enables the driver to connect with online platforms and facilitates real-time communication on the go. Rising consumer demands, the need for constant connectivity, increased dependency on technology and the growing number of tech savvy people account for the growth of this market. Over time, various connectivity solutions have been developed by the 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. Numerous sensors and processors located in the car provide accurate and real-time information to the driver. The connected cars market report covers automobiles including commercial vehicles and cars with internet technologies, thereby giving a brief automobile industry analysis too.
Advanced infotainment systems and a fast connection to the wireless network are the two prominent features that potentially enhance the market growth. Technology agreements and collaborations are the key strategies adopted by the market players to enhance their market share. For instance, AT&T is working with automotive manufacturers to provide contextual voice controls, which would help to create a safer driving experience. TomTom has launched the online turn-by-turn navigation service for customers, making it feasible to connect over a network. Prominently used connected car platforms are Qnx, Android Auto, Carplay, Mirrorlink, and Windows Emdbedded Automotive 7, which will take infotainment to another level.
Based on connectivity technology, the global connected car market is segmented into 2G, 3G, and 4G/LTE. The 2G service used for providing connectivity will gradually fade out in the next few years, which would be replaced by LTE and 3G technology. Some of the prime reasons for this technological shift should be the rapidly changing telecommunication technology and the advent of faster & reliable communication networks.
On the basis of connectivity solutions, the connected car market is segmented into integrated, embedded, and tethered solutions. In 2013, embedded connectivity solution lead the market with almost 40% of the global connected cars market share, followed by integrated and tethered connectivity. However, this scenario could change in 2020, as integrated solutions are expected to occupy approximately 45% of the connected car market share. The reason for this drastic change can be attributed to the consumer freedom of choice in customizing their connectivity devices and data plans.
Navigation, telematics, and infotainment are the major applications of connected cars market. Based on the analysis, navigation should be the fastest growing market during the forecast period. This growth trend observed in the navigation segment is majorly due to the large scale adoption of this service into the connected cars. On the basis of products and services, the market is segmented into sensors, processors, fleet manager, OEM services, aftermarket services and wireless and cellular modules. Amongst all the product and services, fleet manager was the largest revenue-generating segment in 2013. Due to its wide scale application across diverse industries, fleet manager service, is expected to lead the products and services market segment during the forecast period.
Geographically, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific region indicated a prominent growth and will go on to grow at a CAGR of 35.9% over the forecast period. In the years to come, Asia-Pacific should be a prominent automobile market, owing to the rapidly growing population, rising disposal incomes, and a large presence of youth. This in turn should indirectly boost the growth of the connected car market size for connected cars.
KEY BENEFITS OF CONNECTED CARS MARKET
- Current and future connected car market trends adopted by the key market players are highlighted to determine overall competitiveness of the industry.
- Porter’s Five Forces analysis and SWOT analysis of the key market players are provided to illustrate the business strategies adopted by the buyers and suppliers.
- The technology-effective drivers and opportunities are highlighted to describe the top factors responsible for the market growth.
- Various operating segments of the connected cars market are carefully analyzed to measure the potential of the emerging market.
- The quantitative analysis of the market through 2013‐2020 is provided to elaborate the market potential.
CONNECTED CARS MARKET KEY SEGMENTS
Connected Cars Market by Technology
4G/LTE
3G
2G
Connected Cars Market by Connectivity Solutions
Integrated
Embedded
Tethered
Connected Cars Market by Products & Services
Sensors
Wireless and Cellular Modules
Processors
OEM Services
Aftermarket Services
Fleet manager
Connected Cars Market by Applications
Navigation
Telematics
Infotainment
Connected Cars Market by Geography
North America
Europe
Asia Pacific
LAMEA
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