Connected Car Market

Connected Car Market Statistics – 2027

The global connected car market 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 cars 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.

The global connected cars 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.

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.

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 cars market.

Ease of vehicle diagnosis

Advance diagnostic system is a feature that is expected to boost the connected cars market 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 & 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 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 connected 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 Benefits For Stakeholders

• This study presents analytical depiction of the global connected car market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall connected car 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 connected car 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