USD 28.92 billion
Global Connected Car Market Size, Share, Growth Analysis, By Technology(Embedded, Tethered), By Component(Hardware, Software), By Distribution Channel(OEM, Aftermarket) - Industry Forecast 2023-2030
Report ID:
SQMIG25AG2015 |
Region:
Global |
Published Date: March, 2024
Pages:
223
|
Tables:
89 |
Figures:
76
Global Connected Car Market Insights
Global Connected Car Market size was valued at USD 28.92 billion in 2022 and is poised to grow from USD 34.56 billion in 2023 to USD 143.72 billion by 2031, growing at a CAGR of 19.50% during the forecast period (2024-2031).
The global connected car market has been undergoing due to some key points which led by the technological advancements, change in consumer behavior and from new regulations. IT-equipment is experiencing an evolution from control units to fully-fledged platforms that can offer a host of services ranging from entertainment and navigating to telematics and after-sales diagnostics. Integrated, tethered and retrofit systems are enabling this internet connectivity revolution fostering uninterrupted surfing via cellular technologies like 4G and 5G that are governmentally developed; and satellite connectivity for the far-flung areas. These OEMs are willing to put forth all their resources to design high-end connected-car solutions with superior hardware and software and deliver an excellent driving experience while maintaining utmost safety and enable autonomy in a car.
North America is on top position, being followed at close distance by Europe and Asia-Pacific respectively. Their progress can be credited to the homogeneous regulatory climate and the emerging technologies that add to the increasing consumer appetite for smart services. The working relationship that is forged between automotive companies, technology investors, and the government institutions is indispensable as it helps in the search for remedy measures like cybersecurity, data security, and interoperability, which are imperative for the connected car system growth and evolution.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Integrated Systems
Fastest Growth
Embedded
Growth Rate
19.50% CAGR
Global Connected Car Market ($ Bn)
Country Share for North America Region (%)
Global Connected Car Market By Technology ($ Bn)
Global Connected Car Market By Technology (%)
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Global Connected Car Market Segmental Analysis
Global connected car market is segmented based on component, technology, distribution channels and region. By component, the market can be segmented into hardware, software and services. By technology, the market is segmented into embedded, tethered, and integrated systems. By sale channels, the market is segmented into OEM and aftermarket. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Connected Car Market Analysis by Technology
The integrated segment is expected to dominate the market over the forecasted period. These technologies provide countless alternatives for data sharing and are more cheap than embedded and tethered systems. Leading OEMs from across the world have partnered with other significant companies to provide state-of-the-art integrated solutions for connected vehicles that enable smooth communication for users. For example, Ford and Geotab worked together to develop a telematics solution for Ford cars.
The embedded segment is anticipated to hold the second-largest share and emerging as the fastest growing segment of the market. Its dominant position in the market is anticipated to be aided by elements including cost optimization of service plans, cloud services, and regulatory regulations. Furthermore, essential features like eCall systems and remote diagnostics are inoperable without an embedded system. As a result, over the course of the forecast period, it is anticipated that growing embedded system use would drive the uptake of connected automobiles.
Connected Car Market Analysis by Distribution Channel:
In the global connected car market, the OEM segment holds the largest market share. Original Equipment Manufacturers, in other terms, OEMs, who are OEM as well, put connected solutions into new cars and ensure that they are perfectly integrated and have a lot of advanced features. This segment relies on the booming connected car technology in the latest models of vehicles, having a wide reach to satisfy the diverse customer needs; including modern berries and drivers enjoying enhanced driving experiences. OEMs being dominant players that drive technological advancements, and establish the best industry standards, the segment holds a gripping position in the market, utilizing their establishment infrastructures as well as distribution networks to connect to a large world-wide audience.
The aftermarket segment emerged as the fastest-growing segment within the global connected car market. When the demand for smart features rises by the client, the aftermarket provides retrofitting alternatives and standalone devices that enable carrying out of connectivity solutions to upgrade existing automobiles. The primary target of this segment is the car-dominated market. It thus serves as a cost-efficient way for consumers who are looking to upgrade their cars with smart features. Besides this, aftermarket suppliers meet expectations of different target groups, with the assurance of aspects such as personalization and modification for specific vehicle types. Actually, the development of the aftermarket segment will probably go on, therefore, it demonstrates a great rate of innovation and competitive advantage.
Global Connected Car Market By Technology, 2022 (%)
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Global Connected Car Market Regional Insights
North America has emerged as the largest market region for connected car market around the globe. The automotive sector is solid in the North American region, the technology hubs are emerging, and the consumers are adopting the deployed connected car technology at a high rate, which puts the North America region at the forefront in the connected car domain. A region has advantages in terms of the positive regulatory factors, convenient connectivity infrastructure and the techno-consumer awareness thanks to which new vehicles are enthusiastically accepted. The region essentially gives birth to the concept of ´connected car´ with major automotive OEMs and technology companies closing in the area. Furthermore, the uprising of core participants and the continuity of research & development initiatives play an important role in topping the chart of North American market for connected cars.
Asia-Pacific is the emerging leader, leading the charge in the connected car market globally. Fast economic growth, urbanization, and the on-going rise in essence incomes are putting in great request for connected vehicle systems in the countries the brains of China, Japan and South Korea. The fast-growing consumer knowledge on the safety, convenience, and entertainment advantages in driversless vehicles is driving the adoption and utilization of the connected car technology in the region. Lastly, government campaigns encouraging smart transport and upgrading of road infrastructure are among the multiple factors influencing the development of connected cars in the Asia-Pacific region. Automotive sector has been increasingly growing in this region and consumers are becoming more and more tech oriented. So, Asia Pacific becomes the greatest region to grow at market expending and innovations in the connected vehicle field.
Global Connected Car Market By Region, 2024-2031
- Largest
- Fastest
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Global Connected Car Market Dynamics
Connected Car Market Drivers
Advancements in Technology:
- Technology progress, specifically in the innovative solutions related to artificial intelligence, IoT, and 5G connectivity, contribute significantly to the increase in the connected cars markets growth. Such innovative technologies let one add more functionality to the already available features like real-time navigation and sophisticated telemetric and make driving safer. These enhance not only the user experience but also the ease of the consumer.
Increasing Demand for Safety and Security:
- The significant issue of road safety and security is becoming a big factor for getting connected cars impelled. For instance, emergency assistance, remote vehicle tracking, and vehicle theft detection system are among the features provide road safety and are helping towards the safest traveling. Apart from the fact that regulatory requirements and initiatives increase vehicle safety levels inspires the acceptance of connected cars technologies by the public.
Connected Car Market Restraints
High Costs and Complexity:
- The high costs related to implementation of connected car technologies as hardware and software expenses as well as the infrastructure investment deter consumers as market obstruction. Additionally, the complexity of integrating numerous systems and guaranteeing the interoperability among the different components of the vehicles increases more the cost of the manufacturing and reduces the service providers facing the most demanding problems.
Data Privacy and Security Concerns:
- Increasing concerns about data confidentiality and cybersecurity are complex obstacles for to see the success of such technologies in the connected car industry. In vehicles, which intercommunicate and send the vast volumes of sensitive data, like location and user habits, there are the possibilities of the data being stolen or not properly sanitized. It is catalytic not only to deal with these concerns, but also to develop robust data protection procedures is one of the significant issues of trust building between customers and the long-term success of connected car market.
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Global Connected Car Market Competitive Landscape
The company's primary objectives are the deployment of a wide array of cutting-edge connectivity technologies, the creation of self-driving cars for intelligent transportation, and secure mobility management. Another important aspect contributing to the company's dominance is the company's ongoing R&D activities, which are producing cutting-edge technologies.
Connected Car Market Top Player’s Company Profiles
- BMW (Germany)
- General Motors (USA)
- Audi (Germany)
- Ford
- Mercedes-Benz
- Toyota
- Tesla
- Volkswagen
- Nissan
- Volvo
- Honda
- Porsche
- Hyundai
- Kia
- Fiat Chrysler Automobiles
- Mitsubishi
- Tata Motors
- PSA Peugeot Citroën
- Geely
- SAIC Motor Corporation
Connected Car Market Recent Developments
- In February 2024, Harman announced the launch of the Harman Ready Connect 5G Telematics Control Unit (TCU), leveraging new Snapdragon Digital Chassis connected car technologies from Qualcomm Technologies, Inc. to push connectivity boundaries and democratise the automotive connectivity landscape.
- In February 2023, NTT DATA launched of a Connected Car Data Initiative to reduce traffic congestion & CO2 emissions. NTT DATA to develop a proof of concept (POC) in February 2023 utilizing connected car data owned by TOYOTA MOTOR CORPORATION in a parking lot at Mitsui Shopping Park LaLaport TOKYO-BAY, a shopping mall operated by Mitsui Fudosan Group.
- In August 2022, myTVS announced the launch of a connected car platform, ‘myTVS Life360’ for all the post-warranty passenger cars. This is for the first time in India that an aftermarket player offers a ‘Super app’ to passenger car customers that will provide vehicle service, emergency assistance, parts, insurance, payment platform, and accessories, along with a wide range of service products.
Global Connected Car Key Market Trends
- Integration of AI and Machine Learning: Connected car technology integration with AI is on the rise, encompassing such technologies as AI and machine learning. Such automation systems and vehicles are equipped to do hard data analysis that leads to prompt decisions in real-time, thus, improving safety, efficiency, and experience provided to the user. Machine learning algorithms can personalize driver´s preferences, route plan efficiently with the help of traffic congestion, and predictive maintenance also can contribute such a phenomenon. The AI revolution is ongoing and with that, the autonomy of the connected car keeps improving, thus making the latter more adaptive and smarter, thereby redefining the way people interact with the roads and vehicles.
- Shift towards Subscription-Based Models: The emerging trend also becomes clear in terms of other connected car service models where subscription is applied. Rental plans which are reimbursed on monthly or annual basis instead of usual purchases or traditional ownership models are the trend now for accessing connected features and services. These models to the customers will be more flexible and they can change their connectivity options. They are also allowed to opt for services on a monthly and annual basis. Moreover, the gold plan will be attended subscription-based, and this will result with continuous updates and improvements, whilst ensuring that the connected car systems will remain up to date with the latest breakthroughs and security solutions. The latter trend refers to the increasing appeal of instant services and automation of automotive ownership among buyers.
Global Connected Car Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.
According to our analysis, the global connected car market is experiencing significant growth due to the increasing demand for advanced safety and infotainment features in vehicles. The market is expected to continue its growth trajectory due to the rising adoption of electric vehicles, the increasing popularity of ride-sharing services, and the emergence of autonomous vehicles. The high cost of connected car technology, concerns over data privacy and security, and limited network coverage in some regions could act as potential restraints for the growth of the market. Despite these challenges, the increasing integration of AI and IoT technologies in connected cars is expected to provide ample growth opportunities for market players in the coming years. Additionally, the growth of smart cities and the increasing adoption of V2X communication technologies are expected to further fuel the demand for connected car technology.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 28.92 billion |
| Market size value in 2031 | USD 143.72 billion |
| Growth Rate | 19.50% |
| Base year | 2022 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Connected Car Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Connected Car Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Connected Car Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Connected Car Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Connected Car Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Connected Car Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Connected Car Market Report Snapshots
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