Connected Cars Market

Global Connected Car Market Research Report Global Industry Analysis, Size, Share, Growth, Trends, Regional Analysis, Competitor Analysis and Forecast 2024-2032: By Connectivity Solution (Integrated, Embedded, and Tethered), By Service (Driver Assistance, Safety, Entertainment, Well-being, Vehicle Management, and Mobility Management), By Technology (3G, 4G-LTE, and 5G), By End Use (Original Equipment Manufacturer (OEMs) and Aftermarket), and Region (North America, Europe, Asia-Pacific, and Rest of the World)

Automobile & Transportation | March 2023 | Report ID: EMR0056 | Pages: 301

The global connected car market was valued at USD 107.48 billion in 2023 and is estimated to reach approximately USD 467.48 billion by 2032, at a CAGR of 17.7% from 2024 to 2032.

By incorporating cutting-edge technologies to improve driving, the market for connected cars is growing quickly. These cars facilitate real-time data transmission between the car, other devices, and infrastructure by utilizing internet connectivity. This allows for the use of functions like entertainment, navigation, and diagnostics. Thanks to 5G, AI, and IoT, connected automobiles are changing transportation networks with increased safety, efficiency, and convenience. With the hope of mass adoption and smart city integration, automakers are aggressively investing in the development of connected car platforms. Connected cars are set to revolutionize mobility and open the door to a more autonomous and connected future as the automotive sector embraces digital transformation.

 

 

CONNECTED CAR MARKET: REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2023)

107.48 Bn

Projected Market Value (2032)

467.48 Bn

Base Year

2023

Forecast Years

2024 - 2032

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Connectivity Solution, By Service, By Technology, By End Use, & Region

Segments Covered

By Connectivity Solution, By Service, By Technology, By End Use, & Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

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

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.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

Global Connected Car Dynamics

The growing demand from consumers for cutting-edge features like safety, entertainment, and navigation is fueling the connected car market. Technological breakthroughs such as 5G connection, AI-driven systems, and IoT integration fuel innovation and extend capabilities. The market is growing even faster thanks to regulatory initiatives that support safety standards and vehicle-to-everything (V2X) connection. Cooperation between telecom providers, tech firms, and automakers promotes ecosystem growth and interoperability. Notable obstacles include issues with infrastructure, data security, and privacy. Nonetheless, the market continues to flourish with investments in research, development, and partnerships aimed at creating smarter, safer, and more connected vehicles for the future.

 

Global Connected Car Drivers

  • Integration of 5G Connectivity, AI-driven Systems, and IoT

The connected car market is mostly driven by the combination of 5G connection, AI-driven technologies, and IoT. 5G allows for incredibly quick data transfer, enabling real-time connectivity between infrastructure, the cloud, and automobiles. By analyzing enormous volumes of data and making snap judgments, artificial intelligence (AI) improves driver assistance functions like adaptive cruise control and lane-keeping. IoT makes it possible to link to other devices seamlessly, which improves safety, entertainment, and navigation features and, in the end, changes driving and boosts vehicle performance.

  • Increasing Desire for Navigation, Entertainment, and Safety Functionalities

Customers want smooth navigation experiences with optimal route recommendations and real-time traffic updates. Passengers' need for entertainment on-the-go is met by improved entertainment options including streaming services and in-car connectivity. Furthermore, the emphasis on road safety is reflected in the prioritizing of safety technologies such autonomous emergency braking and collision detection systems. The increasing need for diverse features propels innovation and the uptake of connected automotive technologies.

 

Restraints:

  • Data Security and Privacy Concerns

The danger of cyberattacks and illegal access rises as cars are more networked and gather enormous volumes of sensitive data. Customers are reluctant to embrace connected car technology because they are concerned about possible breaches of their personal data. The development and implementation of connected automotive systems are made more complex and expensive by the need to adhere to strict privacy standards and implement strong cybersecurity protections.

  • High Implementation Costs

Significant infrastructure, R&D, and development investments are needed to integrate cutting-edge technologies like 5G connectivity, AI-driven systems, and the Internet of Things. Furthermore, it may be unaffordable for both automakers and customers to retrofit current cars with linked features. Because of their exorbitant pricing, connected car technologies are not widely adopted, particularly in price-sensitive regions. Moreover, the implementation of novel features may be delayed, which would restrict market growth and accessibility.

 

Opportunities:

  • Smart City Integration

Working together with infrastructure suppliers and urban planners enables the creation of intelligent transportation systems that improve overall mobility solutions, optimize traffic flow, and lessen congestion. Vehicles can interact with parking lots, traffic signals, and other infrastructure by utilizing connected car technologies, which facilitates better traffic management and guidance for drivers. This connection makes transportation in smart cities more fluid, improves urban efficiency, and lessens environmental impact.

  • Subscription-Based Models

Manufacturers may create ongoing revenue streams after the initial car purchase by offering subscription packages that grant access to premium features, upgrades, and services. This strategy makes it easier to customize offerings to meet the interests of specific customers while also increasing consumer engagement and loyalty. Furthermore, subscription-based business models make it easier to gradually roll out new features and technological advancements. This ongoing monetization and adaptability to changing customer needs promotes long-term profitability and competitiveness.

 

Segment Overview

  • By Connectivity Solution

Based on connectivity solutions, the global connected car market is divided into integrated, embedded, and tethered. The integrated category dominates the market with the largest revenue share in 2023. Vehicles with built-in systems that can connect to the internet and communicate with other devices are said to have integrated connectivity. Usually, the onboard infotainment or telematics system of the car includes these systems. Cars that have an inbuilt, manufacturer-installed dedicated modem are said to have embedded connection. Tethered connectivity refers to the use of connected services and internet access by automobiles that are dependent on external devices, most commonly smartphones.

  • By Service

Based on the service, the global connected car market is categorized into driver assistance, safety, entertainment, well-being, vehicle management, and mobility management. The driver assistance category leads the global connected car market with the largest revenue share in 2023. Utilizing sensors, cameras, and other technology, driver assistance features help drivers with a variety of driving tasks, including adaptive cruise control, lane-keeping assistance, and parking assistance. With the goal of improving both the vehicle's and its occupants' safety, safety features frequently make use of cutting-edge technologies like automated emergency braking, blind-spot monitoring, and collision detection systems. Entertainment features cover a broad spectrum of in-car entertainment alternatives, including as smartphone and other device connectivity, streaming services, and multimedia systems. Features related to vehicle administration include tracking and controlling several facets of upkeep, diagnostics, and vehicle performance.

  • By Technology

Based on technology, the global connected car market is segmented into 3G, 4G-LTE, and 5G. The 4G-LTE segment dominates the connected car market. In comparison to 3G, 4G-LTE networks provided significantly higher data rates and increased dependability, opening up a wider range of linked services and applications. Vehicles might receive advanced telematics capabilities, real-time traffic data, and high-definition streaming video with 4G-LTE connectivity. 3G networks allowed for minimal internet access, navigation services, and basic telematics functions, however they did so at comparatively slower data speeds than later generations. In comparison to earlier generations, 5G networks offer incredibly low latency, ultra-fast data speeds, and much more network capacity.

  • By End Use

Based on end use, the global connected car market is divided into original equipment manufacturers (OEMs) and aftermarket. The original equipment manufacturer category dominates the market with the largest revenue share in 2023. Original Equipment Manufacturers (OEMs) are automakers who start with a vehicle and add integrated connected car technologies to it. These features are integrated into the architecture of the car and frequently work in unison with other onboard systems. After a vehicle has been produced and sold, businesses and independent suppliers that offer connected car solutions and accessories make up the aftermarket market. Customers can refit or improve their current automobiles with connected car capabilities using aftermarket equipment and services.

 

Global Connected Car Overview by Region

The global connected car market is categorized into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific emerged as the leading region, capturing the largest market share in 2023. Because of the region's growing middle class, rising disposable incomes, and increasing urbanization, the automobile market is sizable and expanding quickly. Furthermore, the governments of nations like China, Japan, and South Korea have been aggressively endorsing and funding projects related to smart transportation infrastructure and connectivity. Additionally, the area is home to a number of significant automakers and IT companies, which promotes innovation and accelerates the use of connected automobile technologies.

Throughout the forecast period, North America is anticipated to post a significant CAGR. This is explained by a number of things, such as the robust presence of the automobile sector, technical developments, and a high degree of consumer adoption of connected car technology. The region's strong regulatory framework, well-developed infrastructure, and rising demand for convenience and safety features in cars all contribute to the market's expansion. Furthermore, collaborations among automakers, tech firms, and telecom carriers keep up the pace of innovation and broaden the scope of services available for connected cars, which supports North America's continuous growth.

 

 

Global Connected Car Competitive Landscape

In the global connected car market, a few major players exert significant market dominance and have established a strong regional presence. These leading companies remain committed to continuous research and development endeavors and actively engage in strategic growth initiatives, including product development, launches, joint ventures, and partnerships. By pursuing these strategies, these companies aim to strengthen their market position, expand their customer base, and capture a substantial share of the market.

Some of the prominent players in the global connected car market include,

  • Airbiquity Inc
  • Robert Bosch GmbH
  • Sierra Wireless
  • AT&T INC
  • Continental AG
  • CloudMade
  • Tesla ZUBIE INC
  • LUXOFT
  • SAMSUNG ELECTRONICS CO. LTD.
  • Qualcomm Technologies Inc
  • Intellias Ltd, and various others.

 

Global Connected Car Recent Developments

  • In July 2021, Major Developments in the Connected Car Space by Toyota, Amazon, and Uber Due to two transactions made by two of the largest corporations in the world in two days, the growing linked car trend received a significant boost this week. Following Toyota's introduction of mobility services to its autonomous fleet, Aurora, an autonomous car startup supported by Uber and Amazon, revealed its intention to go public through a special purpose acquisition company (SPAC) merger at a valuation of $11 billion.
  • In February 2021, With a focus on connected technologies for the automotive, consumer, and enterprise markets, HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd., announced the acquisition of nearly all the assets of Savari®, Inc., a Silicon Valley-based automotive technology company developing vehicle-to-everything communications (V2X) technology in 5G Edge and automotive devices.
  • In January 2020, In order to automate and standardize software development and integration into connected vehicle architectures, Continental AG established the "Continental Cooperation Portal," an online portal. It also offers a central platform for software project communication and may be individually tailored to meet the needs of the user.

 

Scope of the Global Connected Car Report

Connected Car Market Report Segmentation

ATTRIBUTE

DETAILS

By Connectivity Solution

  • Integrated
  • Embedded
  • Tethered

By Service

  • Driver Assistance
  • Safety
  • Entertainment
  • Well-being
  • Vehicle Management
  • Mobility Management

By Technology

  • 3G
  • 4G-LTE
  • 5G

By End Use

  • Original Equipment Manufacturers (OEMs)
  • Aftermarket

By Geography

  • North America (USA, and Canada)
  • Europe (UK, Germany, France, Italy, Spain, Russia and Rest of Europe)
  • Asia Pacific (Japan, China, India, Australia, Southeast Asia and Rest of Asia Pacific)
  • Latin America (Brazil, Mexico, and Rest of Latin America)
  • Middle East & Africa (South Africa, GCC, and Rest of Middle East & Africa)

Customization Scope

  • Available upon request

Pricing

  • Available upon request

 

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

  • Global Connected Car Market Size and Forecast: To identify and estimate the market size for the global connected car market segmented by connectivity solution, by service, by technology, by end use, region and by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of connected car between 2019 and 2032.
  • Market Landscape and Trends: To identify and infer the drivers, restraints, opportunities, and challenges for the global connected car market
  • Market Influencing Factors: To find out the factors which are affecting the sales of connected car among consumers
  • Impact of COVID-19: To identify and understand the various factors involved in the global connected car market affected by the pandemic
  • Company Profiling:  To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

 

Intended Audience

  • Automotive Industry Professionals
  • Technology Companies
  • Investors and Financial Analysts
  • Government Agencies and Policymakers

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.

Frequently Asked Questions

On the basis of Geography, the connected car market is classified into North America, Europe, Asia Pacific, and the Rest of the world
According to connected car market research, the market is expected to grow at a CAGR of ~17.7% over the coming years.
North America is expected to register the highest CAGR during 2024 - 2032
Asia-Pacific held the largest share in 2023
The major players operating in the global market include Airbiquity Inc, Robert Bosch GmbH, Sierra Wireless, AT&T INC, Continental AG, CloudMade, Tesla ZUBIE INC, LUXOFT, SAMSUNG ELECTRONICS CO. LTD., Qualcomm Technologies Inc, Intellias Ltd, and various others.