Connected Car Market is predicted to grow at 25.6% CAGR during the forecast period and anticipated to reach at USD 266 Billion by 2027. GMI Research speculates the market trends and dynamics of the connected cars and encounters the customers are focusing on the in-vehicle connectivity solutions for comfort, which increase the demand of the connected car.
Introduction of the Connected Car Market
A connected car is an internet-connected vehicle via a wireless local area network (WLAN) that enables the car to share data and internet access with other devices both inside and outside. The internet connections help in sending traffic alerts, collisions, and other safety measures to the vehicle. Therefore, a connected car possesses a large variety of promising beneficial functions. The car’s traffic monitoring shows traffic information in determining to choose the right path also helps the driver whether to follow the route or opt for the best alternative offered by the system. Hence, voice command, internet radio, collision warning, roadside assistance, and contextual help are the phenomenal benefits of connected cars that help in improving the overall experience of the driver.
Key Players of the Market
Connected Car Market Dynamics
The significant drivers augmenting the growth of the Global Connected Car market size includes the growing demand for updated user comfort and the increasing trend of vehicle inbuilt connectivity solution among the target audience. Moreover, consumers become aware and want to be connected with the outer world even while traveling. Therefore, an in-vehicle connectivity solution syncs the user’s smartphones with the vehicle’s connectivity system and enables the user to make/receive phone calls, thus boosting the connected car market opportunities by attracting more consumers adopting connected cars over the coming years.
However, as per the connected car market research, several multinational players are concentrating on the development of advanced connecting systems which manage exactly like smartphones and tablets of the customers, which will steer the demand for the Global Connected Car market. In addition, the inclusion of advanced diagnostic systems in the connected car will substantially propel the market growth. The diagnostic systems will record the fuel consumption and vehicle’s smoke emission, thus observing the overall health of the engine.
Therefore, to enhance the safety of both the drivers and passengers, the government is taking several initiatives in developing advanced intelligent transportation systems that will further counterpart the growing demand of the market. On the other hand, as per the connected market report, the breaking risk of the in-vehicle connectivity system will hinder the connected car market size during the forecast period.
Connected Car Market Segmentation
Service Market Drivers
Based on Service, the autopilot segment is projected to lead the market during the forecast period due to the paradigm shift in the demand of the customer towards a comfortable and safe car across the world and the constant product development by multinational automotive players. For example, Tesla Model S is specially designed to auto-guide on changes lanes, highways and adjust the speed according to the changing traffic conditions. Moreover, emerging economies such as China, Japan, and South Korea will introduce autopilot technology in 2022, thereby surging the demand of the Global Connected Car market over the coming years.
Form Market Drivers
Based on Form, an Embedded form of connectivity is estimated to rise at a faster CAGR during the forecast period owing to the rising demand for cloud-based services and the easy availability of cheap service plans. Therefore, with the help of embedded connectivity solutions in the car, eCall and remote diagnostics can easily manage, thus positively complementing the market growth. In addition, the government of various countries is adopting regulations to compulsory the embedded Form of connectivity. For example, Brazil and Russia’s government will start compulsion of the fitment of embedded telematics.
End-Market Market Drivers
Based on the End Market, the Aftermarket segment is projected to grow at a faster CAGR during the forecast period due to the increasing demand for aftermarket telematics services among end-users across the globe. The aftermarket allows the customers to customize their vehicles according to their preference and also helps to add new technologies to the older cars. All these outstanding properties will attract many customers who want to customize their vehicles as per their preference.
Hardware Market Drivers
Telematic Control Unit (TCU) is expected to roar the market during the forecast period due to the growing security regulation by the government and the eCall mandatory initiative of Europe. In a case of a road accident, the emergency call initiative automatically dials emergency number 112 of Europe and facilitates the communication of the vehicle location to the emergency services. These steps will steer the demand for the Telematic Control Unit (TCU), thereby propelling the growth of the Global Connected Car market over the upcoming years.
Transponder Market Drivers
Based on Transponder, the Roadside segment is anticipated to increase at a higher CAGR during the forecast period due to the growing demand for the connected vehicle roadside unit owing to the rising development of smart cities across the globe. Therefore, the roadside unit offers internal data storage for intersection map geometry without replacement control. Moreover, the growing emphasis on lowering the number of accidents on the roads will further burgeon the demand for connected vehicle roadside units in the next few years.
Network Market Drivers
Based on Network, the Cellular segment is expected to soar the market during the forecast period due to the development of 5G cellular communication to create Vehicle-to-Everything (V2X). Hence, V2X enables the traffic element like networks, pedestrians, vehicles, roadside, and infrastructure, to communicate with each other, thus providing a secure, intelligent and autonomous driving experience. The outstanding speed offered by the 5G network will influence demand for the Global Connected Car market over the upcoming years.
Based on region, the Asia-Pacific envisages growing at the fastest rate during the forecast period due to the rising demand for infotainment and navigation services in developing economies like India, China, South Korea, and Japan. Therefore, the customers significantly shifted their preference towards the technology-based vehicle to have an exceptional and connected driving experience will positively impact the Connected Car market in this region. Moreover, the quick urbanization coupled with strong economic growth among various nations and the regular increase in population will further stimulate market growth over the coming years.
In addition, with the constant rise in the population and vehicle demand, the Standardization Administration of China (SAC) and the Ministry of Industry and Information Technology (MIIT) announced the National Guidelines for Developing the Standards System of the Telematics Industry. In Japan, multinational automotive companies are concentrating on implementing and developing connected car services and solutions. This rising emphasis on the development of platforms for connected cars will fuel the growth of the Connected Car market in the region.
Connected Car Market Segmentation
Segmentation By Service
Segmentation By Form
Segmentation By End Market
Segmentation By Hardware
Segmentation By Transponder
Segmentation By Network
Segmentation By Region
Rest of World
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