The Global Connected Cars market size was worth USD 51.1 billion in 2022 and is expected to grow with a CAGR of 26.2% to reach USD 171 billion by 2030 during the forecast period 2023 - 2030.
Connected cars are those which are set up with facilities like internet access and local area network (LAN). The cars provide all features like safety, comfort, performance, and security for the passengers traveling by vehicles. The performance of the car is monitored mechanically.
The European Transport Safety Council (ETSC) has campaigned in favor of different connected and autonomous driving aid features like 5G network-connected cars, ride-hailing facilities, and driverless vehicles. This is completed using connected cars.
COVID-19 Impact on Connected Cars Market
The recent outbreak of novel coronavirus (COVID-19) has created a severe impact on the automotive sector globally. During the pandemic, the production of automotive has seen a decline. With the global lockdown, the supply of components associated with the automotive industry has got disturbed. The production of automotive has been suspended by key players like Volkswagen, Fiat, General Motors, etc. However, post-COVID, some countries have resumed their production. For example, in China, more than 92% of the automotive parts suppliers have re-started their production. In Europe, many of the automotive industries and electronic manufacturers have shut down their factories or limited their production to a lesser limit temporarily which results in a huge loss in trading. The loss is due to the pandemic period. COVID-19 has unlocked enormous opportunities for the connected cars industry because of the considerable rise in implementing technology.
Market Drivers
• Rising demand for Next-Generation vehicles
Due to the growing purchasing power of consumers, the need for next-generation vehicles is increasing fueling the connected cars market growth. Also, the demand for improved driving experience and safety of vehicle population propelled the market growth.
• Government initiatives
The government has taken some initiatives for developing intelligent transport systems, rising demand for smartphone features in cars, and automated driving technologies along with customers/passengers safety features escalates the connected cars market. For example, Fiat Chrysler Automobiles partnered with Harman International to develop a connected service platform 'Ecosystem' for all Fiat cars, in April 2022.
Market Restrains
• Delay in production
During the pandemic period, disturbances in the supply chain in the supply of raw materials and Components hinder the connected cars market.
• High Cost
The connected cars are expensive and unprotected to data robbery hinders the connected cars market growth.
CONNECTED CARS MARKET REPORT COVERAGE
| REPORT METRIC | DETAILS |
| Market Size Available | 2022 – 2030 |
| Base Year | 2022 |
| Forecast Period | 2022 – 2030 |
| Segments Covered | By Service, Form Type, End Market, Hardware, Transponder, Network, Type of Interaction, and Region |
| Regions Covered | North America, APAC, Europe, LATAM, MEA |
Segmentation Analysis
The research report on the global connected cars market has been segmented and sub-segmented based on following types:
• Operational Data
• Navigation
• Remote Diagnostics
• Multimedia Streaming
• Social Media & Other Apps
• Ota Updates
• On-Road Assistance
• E-Call & Sos Assistance
• Cybersecurity
• Remote Operation
• Collision Warning
• Auto Parking/Connected Parking
• Autopilot
• Home Integration
• Vehicle Management
• Asset Tracking
• Others
• Operational Data
• Embedded
• Tethered
• Integrated
• Original Equipment Manufacturer (OEM)
• Aftermarket
• Head Unit
• Central Gateway (CGW)
• Intelligent Antenna
• Electronic Control Unit (Ecu)
• Telematic Control Unit (Tcu)
• Keyless Entry Systems
• Sensors
• Onboard Unit
• Roadside Unit
• Operational Data
• Dedicated Short Range Communication (DSRC)
• Cellular
o 4G
o 5G
o Others
5G type segment is believed to dominate the connected cars market throughout the forecast period. The segment growth owes to several telecommunication companies develop advanced 5G networks for better communication between connected cars and external devices. As per the 5G Automotive Association, 60%, and more road accidents can be prevented with a flawless 5G network. For example, South Korea and European Union (EU) partnered to enhance the 5G network for domestic projects by capitalizing on more than 1.5 USD billion to diminish the rising number of road accidents.
• Vehicle-to-Vehicle(V2V)
• Vehicle-to-Infrastructure(V2I)
• Vehicle-to-Device(V2D)
• Others
By type of interaction, the vehicle-to-vehicle (V-2-V) segment is said to lead the connected cars market with the highest share over the historical period. V2V communication helps to reduce traffic crowding, increase road safety, and develops population comfort. Moreover, factors like enhancements in wireless technologies and the growing use of advanced infrastructures like GPS and sensors in V2V systems propelling the V2V segment's growth. For example, in June 2017, Cadillac provided the world's first V2V communication in its CTS Sedan together with the improvement in the vehicle to infrastructure communication in Michigan.
The Vehicle-to-Infrastructure (V2I) segment is likely to exhibit an excellent growth pace. Factors like rising government measures to progress the V2I framework fuel the constant growth throughout the connected cars market growth.
• V2V and V2I Communication for Safety
• Data Capture and Management
• Dynamic Mobility Applications
• Driver Assistance and Advanced Navigation
• Road Weather Management
• Vehicle Health Monitoring & Convenient Maintenance
• Application Environment: Real-Time Information Synthesis
• Fleet Management
• Others
Regional Analysis
North America is dominating the connected cars market with the largest share in terms of revenue. The United States and Canada contribute a major share towards the connected cars market and are expected to dominate throughout the period. The connected cars market in the U.S is becoming mature enough. In 2022, Ford utilizes cellular vehicle-to-everything technology over its models in the U.S. For example, all the vehicles sold by 2023 need to be equipped with Vehicle-to-Everything communications mandated by the U.S. Department of Transport. The rise in need for aftermarket services across the renewal of connected car service subscriptions will drive the U.S market over the upcoming years.
The connected cars market in Europe is the second-largest region with the highest share globally. Europe is said to be the home for many automotive manufacturers in technology. For example, in 2014, the European department of transportation has made some regulations with governments to overcome road accidents and provide safety for the passengers. European Union (EU) launched the eCall mandated, certain levels of driver assistance systems to be installed in all new cars to be sold in 2022, in 2022. The connected cars market growth in Europe owes to certain use cases of 5G network connectivity implemented in cars in Europe results in a rising need for connected cars. In 2017, the European Union has started the 5G-CORAL project under its Horizon Program, where Azcom develops its V2X capabilities.
However, Asia-Pacific is the quickest growing region in the connected cars market. China is the major contributor with the highest share in the market. In the Chinese market, the demand for connected cars is increasing quickly. 35% and more connected cars sales are likely to upgrade the Chinese market. India's connected cars market is likely to grow by 20% in the next few years. The Indian connected cars market growth owes as consumers show much interest to pay more for advanced and connected technologies.
Connected Cars Market Key Players
• Honda Motor Co. Ltd
• Toyota Motor Corporation
• Fiat Chrysler Automobiles N.V
• Volkswagen AG
• Nissan Motors Co., ltd
• Audi AG
• General Motors Company
• NXP Corporation
• Bayerische Motoren Werke(BMW) AG
• Ford Motor Company
• Telstra Corporation
• Hyundai Motor Company
• AT&T Inc
Recent Happenings in the Connected Cars Market
• On July 29, 2022, Honda Cars India Ltd. unveiled the improved version of NextGen Honda Connect by launching Honda Action on Google. The new version comes up with Alexa remote facility.
• On August 19, 2022, General Motors (GM) decided to launch a 5G connected vehicle in China in 2022.
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
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