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, the increasing adoption of integrated connectivity, and the growing integration of advanced safety and comfort features in the vehicles like advanced driver assistance systems and vehicle infotainment.
• Lucintel forecasts that, within the technology type category, integrated is expected to witness the highest growth over the forecast period because it provides unlimited data sharing possibilities and is affordable as compared to other systems.
• Within the application category, 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.
• In terms of regions, APAC is expected to witness the 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.
Gain valuable insights for your business decisions with our 150+ page report.
Emerging Trends in the Connected Car Market
Connected car market trends are evolving rapidly due to technological advancements and shifting customer preferences. These trends are reshaping the market by enhancing vehicle connectivity, safety, and user experience.
• 5G Integration: The adoption of 5G has been transformative for connected cars by enabling faster data transfer speeds and lower latency. This facilitates real-time communication among vehicles, infrastructure, and other road users, enhancing safety and supporting advanced applications like self-driving vehicles.
• Advanced Driver Assistance Systems (ADAS): ADAS technology has become increasingly complex, incorporating functions like adaptive cruise control, lane-keeping assistance, and automatic emergency braking. These systems further improve car safety and support autonomous driving capabilities.
• In-Vehicle Artificial Intelligence (AI): In-car AI is widely used in connected cars, offering features like voice recognition, predictive maintenance, and personalized user experiences. AI-based systems enhance vehicle performance while providing added convenience and security for drivers.
• Over-the-Air (OTA) Updates: OTA updates have become a standard feature in modern cars, allowing manufacturers to update software remotely without requiring a trip to the service center. This reduces repair costs and keeps vehicles current with technological advancements.
Trends such as 5G integration, enhanced ADAS features, automotive AI systems, OTA updates, and V2X communication are propelling growth in the connected car market, advancing automobile safety, connectivity, and user experience, which are shaping the future of automotive technology.
Recent Developments in the Connected Car Market
The connected car market is advancing rapidly with significant technological innovations and evolving consumer preferences. Recent developments are enhancing connectivity, safety, and the overall driving experience.
• Expansion of 5G Networks: The rapid rollout of 5G networks enables faster data transfer and more reliable communication between linked vehicles and infrastructure. This supports real-time traffic management, advanced driver assistance, and other innovative applications.
• Increased Focus on Autonomous Driving: Significant progress is being made in autonomous vehicle technology. To enhance automation, companies are investing in AI and sensor technologies, while pilot programs and regulatory frameworks are being developed for self-driving vehicles.
• Enhanced Infotainment Systems: Connected cars now feature advanced infotainment systems with improved user interfaces that integrate seamlessly with smart devices. These systems offer voice recognition, gesture controls, and mobile app integration for an enriched in-car entertainment experience.
• Growth in Vehicle-to-Everything (V2X) Technology: V2X communication supports interaction between vehicles and their surroundings, including vehicle-to-infrastructure (V2I) and vehicle-to-pedestrian (V2P) connections, improving safety and traffic control.
These advancements, including 5G expansion, progress in autonomous driving, advanced infotainment systems, V2X technology, and OTA updates, are driving significant transformations in the connected car market by enhancing connectivity, safety, and the driving experience.
Strategic Growth Opportunities for Connected Car Market
The connected car market offers numerous strategic growth opportunities across various applications. Leveraging these opportunities can drive market expansion and meet the growing demand for improved vehicle connectivity and technology.
• Autonomous Driving Solutions: Advancements in autonomous driving technologies represent a major growth opportunity. Through developments in AI and sensor technologies, companies can create self-driving systems that meet the rising demand for increased vehicle automation and safety.
• Advanced Infotainment Systems: Developing advanced infotainment systems with voice control, personalized content, and seamless connectivity is a key growth area, meeting customersÄX%$%X demand for enhanced in-car entertainment and connectivity.
• Vehicle-to-Everything (V2X) Communication: V2X communication has growth potential in improving road safety and traffic management. Integrating V2X systems into vehicles supports smart transportation infrastructure and enhances situational awareness.
• Over-the-Air (OTA) Updates: OTA updates offer growth opportunities by enabling remote software updates and feature enhancements. This reduces maintenance costs and ensures that vehicles remain up-to-date with technological advancements.
Innovation and expansion in the connected car market are driven by growth opportunities such as autonomous driving, advanced infotainment, V2X communication, and OTA updates. The market is growing in response to changing consumer needs and business demands.
Connected Car Market Driver and Challenges
The growth of the connected car market is influenced by various factors, including technological advancements, economic conditions, and regulatory considerations.
Drivers in the connected car market include:
• Technological Advancements: Innovations in connectivity, AI, and sensor technologies drive the connected car market by improving vehicle performance, safety, and user experience, which enhances market growth and adoption.
• Consumer Demand for Enhanced Connectivity: Rising consumer demand for advanced in-car connectivity and infotainment features is a key driver. Consumers want seamless integration with smart devices and a personalized driving experience.
• Government Regulations and Incentives: Governments are implementing policies to support advanced vehicle technology, which accelerates market growth. Regulations aimed at improving roadworthiness, reducing emissions, and promoting infrastructure development have increased investments in connected car solutions.
• Rise in Vehicle Automation: The emphasis on vehicle automation and autonomous driving is driving market development. Progress in self-driving technology and increased automation create new opportunities and fuel innovation.
Challenges in the connected car market include:
• High Development Costs: Development costs, including research, infrastructure, and integration expenses, make connected car technology expensive. Smaller companies face challenges in entering the market due to these high costs.
• Data Privacy and Security Concerns: Data privacy and cybersecurity pose significant challenges in the connected car industry. Ensuring that sensitive information and vehicle communication systems are secure is essential for maintaining consumer trust.
Technological advancements, government support, consumer demand, and increased vehicle automation are key drivers of growth in the connected car industry. However, challenges such as high development costs, data privacy concerns, and regulatory compliance need to be addressed to ensure sustainable growth and continuous improvement.
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 car market is evolving due to technological advancements and changing consumer expectations. Recent developments in countries like the United States, China, Germany, India, and Japan reflect regional priorities in enhancing vehicle connectivity.
• United States: The U.S. market has seen significant growth in connected car technologies, focusing on autonomous driving and advanced infotainment systems. Innovations include 5G integration for faster data transmission, OTA updates, and enhanced vehicle-to-everything (V2X) communication. Major automakers are heavily investing in AI-based driver-assistance systems and intelligent navigation.
• China: China leads in connected car technology development with a focus on AI and big data integration. Advanced driver assistance systems (ADAS) are widely adopted, and smart connectivity features are rapidly entering the market. The government has made substantial investments in 5G infrastructure to support advanced V2I and V2X communication.
• Germany: Germany prioritizes vehicle safety and efficiency through sophisticated connectivity solutions. The market emphasizes high-precision mapping and V2X technology, with significant investments in autonomous driving research. Integration of connected car systems with traffic management infrastructure aims to improve road capacity and safety.
• India: India’s connected car market is expanding with a focus on affordable, scalable services. As the middle class grows, so does interest in telematics and infotainment systems. Companies are seeking collaborations to develop cost-effective connected vehicle features, meeting the demand for increased connectivity.
• Japan: Japan is advancing in connected car technology with a strong emphasis on driver assistance and safety. Innovations include combining AI and machine learning to enhance vehicle performance and connectivity. Japanese companies are partnering with tech firms to develop 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.