Connected Cars Market Size & Growth (2023 - 2030)
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 |
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Segmentation Analysis
The research report on the global connected cars market has been segmented and sub-segmented based on following types:
Connected Cars Market – By Service
• 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
Connected Cars Market – By Form Type
• Operational Data
• Embedded
• Tethered
• Integrated
Connected Cars Market – By End Market
• Original Equipment Manufacturer (OEM)
• Aftermarket
Connected Cars Market - By Hardware
• Head Unit
• Central Gateway (CGW)
• Intelligent Antenna
• Electronic Control Unit (Ecu)
• Telematic Control Unit (Tcu)
• Keyless Entry Systems
• Sensors
Connected Cars Market - By Transponder
• Onboard Unit
• Roadside Unit
Connected Cars Market - By Network
• 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.
Connected Cars Market - By Type of Interaction
• 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.
Connected Cars Market - By Application
• 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.
