Connected Cars Market
Connected Cars Market By Technology (3G, 4G/LTE, 5G) By Connectivity Solution (Integrated, Embedded, Tethered) By Service (Driver Assistance, Safety, Entertainment, Well-being Vehicle Management, Mobility Management) By End Use (OEM, Aftermarket) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2031
The global connected cars market size was estimated at USD 66.4 billion in 2022 and it is predicted to hit around USD 275.89 billion by 2031, growing at a CAGR of 15.50% between 2023 and 2031. In addition to strong network technology, connected cars enable connectivity while providing performance, comfort, safety, and security. By connecting to online networks, the driver is able to communicate in real time. The main factors driving the expansion of the global market for connected automobiles are an increase in consumer demand for connectivity solutions, an increase in the need for continuous connectivity, an increase in reliance on technology, and an increase in tech literacy among the populace.
Machine-to-machine (M2M) communication platforms are among the connectivity solutions developed by automakers and service providers over time. Its M2M functionality in a vehicle enables two connected vehicles to communicate with one another. The vehicle contains numerous sensors and processors that provide the driver with accurate and up-to-date information.
Impact of COVID-19
When lockdowns occur infrequently and reduce vehicle utilization, there is a short-term continuation of uncertainty in new purchases. The shortage of semiconductors, which has already forced many major manufacturers to halt production, will have an even greater impact on sales. Despite the financial crisis, which has resulted in a significant increase in second-hand sales, the demand for private transportation continues to rise. This will compensate for some of the lost sales. Businesses can focus on improving connectivity between their services and products across the automotive value chain.
For Example, A shared mobility provider can boost consumer trust by offering connected services in its vehicles, such as contact tracing. This ensures that the vehicles are clean and sanitary, allowing the disease to be monitored and contained. Similarly, automotive OEMs are prioritizing connected vehicle programmes by increasing R&D spending in collaboration with solution providers and partners.
Connected Cars Market REPORT SCOPE & SEGMENTATION
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Report Attribute |
Details |
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Estimated Market Value (2022) |
66.4 Bn |
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Projected Market Value (2031) |
275.89 Bn |
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Base Year |
2022 |
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Forecast Years |
2023 - 2031 |
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Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Technology, By Connectivity Solution, By Service, By End Use & By Region |
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Segments Covered |
By Technology, By Connectivity Solution, By Service, By End Use & By Region |
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Forecast Units |
Value (USD Billion), and Volume (Units) |
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Quantitative Units |
Revenue in USD million/billion and CAGR from 2023 to 2031 |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World |
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Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others |
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Report Coverage |
Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis. |
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Delivery Format |
Delivered as an attached PDF and Excel through email, according to the purchase option. |
Growth Factors
The market is projected to grow due to technological advances, increased auto production, and rising customer demand for luxury and comfort in vehicles. Furthermore, issues such as the expansion of international auto rules and the high maintenance costs of modern suspension systems are expected to stymie the development of the connected car sector. Nonetheless, the industry is expected to grow more rapidly as a result of the development of improved suspension systems and the rise in demand for lightweight suspension systems.
Automakers' top priority right now is to include connectivity options in their vehicles. Many modern automobiles have a variety of connectivity options, many of which require an internet connection to function. Connectivity in a car can be provided by embedded, integrated, or tethered connectivity solutions. The driver and other passengers in the car can use one of these connectivity options to connect to the internet. An in-car hotspot can be created using a smartphone, modem, or networking device to provide Internet access to all of the devices inside the vehicle. As a result of the rising trend of connectivity solutions, the market for connected cars is expanding.
Another significant trend in this market is the increased use of cybersecurity solutions in vehicle safety systems. Data has recently emerged as a critical component in the automotive industry. In connected vehicles, the automobile's infotainment system is linked with the user's smartphone.
Market Dynamics
Market Drivers:
As a result of smartphones, the concept of connectivity has evolved over time. People want to stay connected to the outside world while travelling. Automobile manufacturers include connectivity features in their vehicles to increase sales now that connectivity is a requirement. Customers expect their cars to perform functions similar to those of personal computers and cellphones.
Automakers have prioritized the incorporation of connectivity technology. Several networking technologies used in today's automobiles require internet access to function properly. Connectivity in a vehicle can be enabled by embedded, integrated, or tethered connection systems. One connectivity solution is internet access for the driver and passengers in the car. To provide Internet connectivity to any device within the car, an in-car hotspot can be created using a smartphone, modem, or networking device. As a result of the popularity of connectivity solutions, the market for connected cars is expanding.
Market Restraint:
The primary goal of connected cars is to keep the consumer connected to the outside world. Even when travelling, people require constant internet access. Customers expect their cars to perform functions similar to those of their computers or smartphones. Intermittent connectivity may be a barrier to the connected automobile market due to its inability to provide a continuous Internet connection. This is primarily due to inconsistencies in service provider networks that vary by region.
Market Opportunity:
One of the many innovative aftermarket technologies that connected automobiles offer as part of their safety features is data interchange between the vehicle and the driver. Safety blends telecommunications and automobile technology to increase vehicle efficiency, save fuel and maintenance costs, strengthen security and safety measures, and improve the overall driving experience for the driver. The driver assistance system is another component of connected cars that assists the driver in selecting the best route to their destination. It also sends alerts about parking availability and traffic congestion. Intelligent transportation systems can improve the driving experience with the help of these connected car features.
Regional Analysis
In 2022, North America contributed the most revenue. The development of the connected car network is expected to drive significant growth in the connected car market in North America. Important telecommunications companies are also investing in the development of connected vehicle capabilities. Increased vehicle production and sales have aided the growth of connected car services in North America. Connected service providers have made significant breakthroughs in order to provide better and more effective service, resulting in the expansion of the regional market.
Europe is the second-largest region. Europe is made up of the United Kingdom, Germany, France, Russia, Italy, and the rest of Europe. To encourage the use of cybersecurity in these vehicles, investment firms provide cash to top connected car developers. This is done to ensure the safety of data transmission. Important automakers are now introducing new autonomous, connected vehicles to improve the driving experience. The European connected car market has expanded as a result of advancements made by Europe's leading corporations to provide better and more efficient connected car services. Furthermore, the introduction of advanced technologies such as ADAS has enabled automakers to offer linked services in vehicles, resulting in the expansion of the European market.
Asia-Pacific comes in third in terms of size. Asia-Pacific is made up of China, Japan, India, South Korea, and other Asian countries. A large number of automakers with operations in the Asia-Pacific region have developed connected services, which will eventually aid in the growth of the region's connected car industry. The market for connected cars is expected to grow dramatically as a result of the collaboration of well-known connected vehicle companies and the rollout of 5G networks for connected cars. Another initiative that is expected to aid the growth of the Asia-Pacific connected car industry is the development of sophisticated wireless platforms for connected vehicles by wireless service providers.
Competitive Landscape
The Global Connected Cars Market Some of the major companies include: -
Key Market Players:
- Airbiquity Inc.
- AT&T
- Audi AG
- BMW Group
- CloudMade
- Continental AG
- Daimler AG
- Ford Motor Company
- Intellias Ltd.
- LUXOFT
Key Benefits of the Report
- This study presents an analytical depiction of the Connected Cars industry along with current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to market key drivers, restraints, and opportunities, along with detailed analysis of the Connected Cars Market share.
- The current market is quantitatively analyzed to highlight the Connected Cars Market's growth scenario.
- Porter's five forces research demonstrates the market power of suppliers and buyers.
- The report provides a detailed Connected Cars market analysis based on competitive intensity and how the competition will take shape in the coming years.
Connected Cars Market Report Segmentation
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ATTRIBUTE |
DETAILS |
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By Technology |
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By Connectivity Solution |
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By Service |
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By End Use |
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By Geography |
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Customization Scope |
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Pricing |
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The Report Answers Questions Such As:
- What is the potential opportunity for the Connected Cars Market.
- What are the major drivers, restraints, and opportunities of the Connected Cars Market.
- What is the market share of the leading segments and sub-segments of the Connected Cars Market in the forecast period (2023-2031).
- How is each segment of the Connected Cars Market expected to grow during the forecast period.
- What is the expected revenue to be generated by each of the segments by the end of 203.
- What are the key development strategies implemented by the key players to stand out in this Connected Cars Market.
- What is the preferred business model used for building Connected Cars Market.
- Which area of application is expected to be the highest revenue generator in the Connected Cars Market during the forecast period.
- Which end-user segment is expected to be the highest revenue generator in this industry during the forecast period.
- What is the potential of Connected Cars Market in the emerging countries during the forecast period.
Research Methodology
Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region. The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.
Data Collection
Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.
Primary Research
After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market.
Secondary Research
A secondary research process is conducted to identify and collect information useful for the extensive, technical, market-oriented, and comprehensive study of the market. Secondary sources include published market studies, competitive information, white papers, analyst reports, government agencies, industry and trade associations, media sources, chambers of commerce, newsletters, trade publications, magazines, Bloomberg BusinessWeek, Factiva, D&B, annual reports, company house documents, investor presentations, articles, journals, blogs, and SEC filings of companies, newspapers, and so on. We have assigned weights to these parameters and quantified their market impacts using the weighted average analysis to derive the expected market growth rate.
Top-Down Approach & Bottom-Up Approach
In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.
In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.
This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.
Market Analysis & size Estimation
Post the data mining stage, we gather our findings and analyze them, filtering out relevant insights. These are evaluated across research teams and industry experts. All this data is collected and evaluated by our analysts. The key players in the industry or markets are identified through extensive primary and secondary research. All percentage share splits, and breakdowns have been determined using secondary sources and verified through primary sources. The market size, in terms of value and volume, is determined through primary and secondary research processes, and forecasting models including the time series model, econometric model, judgmental forecasting model, the Delphi method, among Flywheel Energy Storage. Gathered information for market analysis, competitive landscape, growth trends, product development, and pricing trends is fed into the model and analyzed simultaneously.
Quality Checking & Final Review
The analysis done by the research team is further reviewed to check for the accuracy of the data provided to ensure the clients’ requirements. This approach provides essential checks and balances which facilitate the production of quality data. This Type of revision was done in two phases for the authenticity of the data and negligible errors in the report. After quality checking, the report is reviewed to look after the presentation, Type and to recheck if all the requirements of the clients were addressed.
