Connected Car Trends and Forecast
The future of the global connected car market looks promising with opportunities in the mobility management, telematic, infotainment, and driver assistance markets. The global connected car market is expected to reach an estimated $184.1 billion by 2030 with a CAGR of 16.7% from 2024 to 2030. The major drivers for this market are rising sale of high-end luxury cars, increasing adoption of integrated connectivity, and growing integration of advanced safety and comfort features in the vehicles like advanced driver assistance systems and vehicle infotainment.
Lucintel forecasts that integrated is expected to witness highest growth over the forecast period because it provides unlimited data sharing possibilities and is affordable as compare to other systems.
Mobility management will remain the highest growing segment because it enables the driver to reach the destination safely in the shortest time and it provides important information such as, extreme weather and road conditions and real-time routes to avoid external hazards.
APAC is expected to witness largest region over the forecast period due to increasing penetration of connectivity features in the latest car models and growing demand for digital features in vehicles, especially in developing countries like China and India.
A more than 150-page report is developed to help in your business decisions.
Emerging Trends in the Connected Car Market
Connected car market trends are changing rapidly due to technological advancements and customer preference. These trends are reshaping the market by improving vehicle connectivity, enhancing safety and user experience.
• 5G Integration: The adoption of 5G has been a game changer in connected cars as it provides quicker data transfer speeds and lower latency. This facilitates real-time communication among vehicles, infrastructure, and other road users for increased safety and advanced applications like self-driving vehicles.
• Advanced Driver Assistance Systems (ADAS): ADAS technology is becoming more complex such that they now have functions such as adaptive cruise control, lane-keeping assistance, or automatic emergency braking. Such systems further enhance car safety with regards to autonomous drive.
• In-Vehicle Artificial Intelligence (AI): In-car AI is being employed across connected cars with features like voice recognition, predictive maintenance, and personalized user experiences.AI-based systems improve vehicle performance while providing additional convenience and security for drivers.
• Over-the-Air (OTA) Updates: OTA updates have become a standard feature in modern cars enabling manufacturers to update their software remotely without bringing the vehicle to the service centre along with incorporating new features. It lowers costs for repairs whereas making sure that the vehicles remain up-to-date on technology advancements.
Such trends as 5G integration, enhanced ADAS features, automotive AI systems, over-the-air software updates and V2X communication are propelling development in the connected car market; Enhancing automobile safety, connectivity and user experience have shaped the future of automotive technology.
Recent Developments in the Connected Car Market
The connected car market is moving at a fast pace with significant technological advancements and consumer preferences changing. The market is evolving due to recent developments that are improving connectivity, safety, and enhancing overall driving experience.
• Expansion of 5G Networks: 5G networks have started rolling out rapidly enabling faster data transfer and more reliable communication between linked vehicles and infrastructure. This development enhances the deployment of real time traffic management systems, better driver assistance systems among other advanced applications.
• Increased Focus on Autonomous Driving: Great strides are being made in the development of autonomous vehicle technology. In order to improve vehicle automation, businesses are investing in artificial intelligence (AI) as well as sensor technologies while pilot schemes and regulatory environments are being set-up for self-driving cars.
• Enhanced Infotainment Systems: Connected cars now come with improved user interfaces on their highly developed infotainment systems that perfectly match up with smart devices. These include voice recognition, gesture controls, or even seamless mobile app integration facilitating an enriched in-car entertainment experience
• Growth in Vehicle-to-Everything (V2X) Technology: V2X communication technologies support interaction between vehicles and their environment such as vehicle to infrastructure (V2I), vehicle to pedestrian (V2P), which enhance safety as well as traffic control.
These advancements such as 5G expansion, progress made in autonomous driving, advanced infotainment systems, V2X technology and OTA updates are driving substantial transformations in the connected car market. They aid in improving connectivity, safety and overall driving experience.
Strategic Growth Opportunities for Connected Car Market
The connected car market holds numerous strategic growth opportunities across various applications. Harnessing these opportunities can lead to the expansion of markets and meet the changing needs of consumers related to improved vehicle connectivity and technology.
• Autonomous Driving Solutions: The development in autonomous driving technologies, however, represents a major growth opportunity. Through developments in AI and sensor technologies, firms could come up with self-driving systems that can be installed into automobiles as they seek to satisfy an increasing demand for greater vehicle automation and safety.
• Advanced Infotainment Systems: A key growth area is developing advanced infotainment systems with voice control, personalized content, and seamless connectivity. This chance satisfies customers’ craving for better in-car entertainment experiences and interconnections.
• Vehicle-to-Everything (V2X) Communication: V2X communications have potential for growth by enhancing road safety as well as traffic management. The incorporation of V2X systems into cars will support smart transportation infrastructure development while improving situational awareness.
• Over-the-Air (OTA) Updates: OTA updates offer room for growth through remote software updates as well as feature enhancements. This means that vehicle maintenance is made easier, service costs are reduced, while keeping cars abreast with current technology advancements.
Innovation and expansion of connected car market are determined by strategic growth opportunities in it which include but not limited to autonomous driving, advanced infotainment, V2X communication, OTA updates and telematics. The market is growing due to these opportunities and changing consumer needs as well as business requirements.
Connected Car Market Driver and Challenges
The growth and development of the connected car market are influenced by various factors. These include technological advancements, economic conditions, and regulatory considerations.
The factors responsible for driving the connected car market include:
1. Technological Advancements: Innovations in connectivity, AI and sensor technologies are driving the connected car market. These advancements help to improve vehicle performance, safety as well as user experience which enhances market growth as well as adoption.
2. Consumer Demand for Enhanced Connectivity: Rising demand from consumers for advanced in-car connectivity and infotainment features is driving this market. Consumers want their cars to be seamlessly integrated with smart devices and a personalised experience while driving.
3. Government Regulations and Incentives: The government has been setting up supporting laws that foster advanced vehicles technology in order to enable fast growth of the industry on this market. Policies which aim at improving roadworthiness of vehicles, reducing pollution through emissions control measures and promoting transport infrastructure have resulted into more capital being invested in connected car solutions.
4. Rise in Vehicle Automation: Increasing emphasis on vehicle automation and autonomous driving is propelling developments on the market. This advances self-driving technology along with increasing automation leads to inventive ideas while creating new opportunities.
Challenges in the connected car market are:
1. High Development Costs; These costs include research and development, infrastructure, integration etc which make the development and implementation of connected car technologies very costly. Smaller firms face this obstacle in trying to enter the market.
2. Data Privacy and Security Worries: Data privacy and cybersecurity maters in the connected car industry pose significant challenges. It is essential to ensure that sensitive information is secure as well as vehicle communication systems if consumer loyalty is to be obtained.
Technological advancements such as those reported here have driven demand attributes such as government support, consumer demand, technological advancements, vehicle automation among others now being followed by developments focusing upon safety or even efficiency within transportation sector will continue boosting growth of connected cars industry globally. However affected areas such as high developmental costs; issues concerning data privacy;1≈ and regulatory compliance must be addressed if we are to experience sustainable growth incorporating other factors which support ongoing improvements.
List of Connected Car Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies connected car companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the connected car companies profiled in this report include-
• Continental
• Robert Bosch
• Harman International Industries
• Denso Corporation
• Airbiquity
• Visteon Corporation
• Samsung Electronics
• Sierra Wireless
• Tesla
• Daimler
Connected Car by Segment
The study includes a forecast for the global connected car by network type, technology type, application, and region
Connected Car Market by Network Type [Analysis by Value from 2018 to 2030]:
• 3G
• 4G
• 5G
• Satellite
Connected Car Market by Technology Type [Analysis by Value from 2018 to 2030]:
• Embedded
• Tethered
• Integrated
Connected Car Market by Application [Analysis by Value from 2018 to 2030]:
• Mobility Management
• Telematics
• Infotainment
• Driver Assistance
Connected Car Market by Region [Analysis by Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the Connected Car Market
The connected vehicle market is ever-changing owing to the technological advancements and changing consumer expectations. Most recently, various developments in the United States, China, Germany, India and Japan reflect different regional priorities and technical advancements towards improving vehicle connectivity.
• United States: The US market has seen a large increase in connected car technologies with a focus on autonomous driving capabilities as well as advanced infotainment systems. For example, innovation includes integration of 5G for faster data transmission, increased adoption of over-the-air updates and improved vehicle-to-everything (V2X) communication. Major auto manufacturers are investing significantly in AI-based driver-assistance systems and intelligent navigation aids.
• China: China is at the forefront when it comes to connected car technologies development and implementation by concentrating on integrating AI and big data. In addition, advanced driver assistance systems (ADAS) have been extensively embraced while smart connectivity features are incoming into the Chinese market. There have been substantial investments into 5G infrastructure by governments through incentives in support of advanced vehicle-to-infrastructure (V2I) and V2X communication.
• Germany: Germany is concentrating on the enhancement of automobile safety and efficiency through sophisticated connectivity solutions. There are priority areas such as the development of high-precision mapping as well as V2X technologies with significant investments in autonomous driving research. The German market also focuses on integrating connected car systems into existing traffic management infrastructure to improve road capacity and enhance safety.
• India: In India, connected cars’ market is booming, and it aims at providing inexpensive services that can be scaled up. As middle class consumers increase so does interest in value-based telematics and infotainment systems. These companies are looking at collaboration opportunities that will enable them to incorporate more affordable models with connected vehicle features, which is essential for a rapidly expanding market expecting increased vehicle connectivity.
• Japan: Japan is making progress in terms of connected car technology with a heavy concentration on driver assistance systems and safety improvements. Innovations involve the blending of AI (Artificial Intelligence) with machine learning algorithms to improve vehicle performance and connectivity. Japanese companies are also looking for partnerships from tech firms to create the next generation V2X systems and autonomous driving solutions.
Features of the Global Connected Car Market
Market Size Estimates: Connected car market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Connected car market size by various segments, such as by network type, technology type, application, and region in terms of value ($B).
Regional Analysis: Connected Car Market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different network types, technology types, applications, and regions for the connected car market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the connected car market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this market or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q.1 What is the connected car market size?
Answer: The global connected car market is expected to reach an estimated $184.1 billion by 2030.
Q.2 What is the growth forecast for connected car market?
Answer: The global connected car market is expected to grow with a cagr of 16.7% from 2024 to 2030.
Q.3 What are the major drivers influencing the growth of the connected car market?
Answer: The major drivers for this market are rising sale of high-end luxury cars, increasing adoption of integrated connectivity, and growing integration of advanced safety and comfort features in the vehicles like advanced driver assistance systems and vehicle infotainment.
Q4. What are the major segments for connected car market?
Answer: The future of the global connected car market looks promising with opportunities in the mobility management, telematic, infotainment, and driver assistance markets.
Q5. Who are the key connected car market companies?
Answer: Some of the key connected car companies are as follows:
• Continental
• Robert Bosch
• Harman International Industries
• DENSO Corporation
• Airbiquity
• Visteon Corporation
• Samsung Electronics
• Sierra Wireless
• Tesla
• Daimler
Q6. Which connected car market segment will be the largest in future?
Answer: Lucintel forecasts that integrated is expected to witness highest growth over the forecast period because it provides unlimited data sharing possibilities and is affordable as compare to other systems.
Q7. In connected car market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness largest region over the forecast period due to increasing penetration of connectivity features in the latest car models and growing demand for digital features in vehicles, especially in developing countries like China and India.
Q.8 Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the connected car market by network type (3G, 4G, 5G, and satellite), technology type (embedded, tethered, and integrated), application (mobility management, telematics, infotainment, and driver assistance), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to connected car market or related to connected car companies, connected car market size, connected car market share, connected car market growth, connected car market research, write Lucintel analyst at email: helpdesk@lucintel.com we will be glad to get back to you soon.