The global Connected Car Market is estimated to reach USD 244.3 billion in 2030 with a CAGR of 12.8% during the forecast period of 2022-2030, and it was valued at USD 99.4 billion in 2022.

Factors such as the rollout of stringent safety regulations, adoption of high-end and luxury cars, and growing adoption of integrated connectivity are expected to drive the demand for connected cars. Increased demand for enhanced user comfort, safety and convenience, the increasing popularity of automation in the automotive sector, and ride-sharing and mobile services developments will propel the industry.

What is Connect Car Market?

A connected car is a car system that can communicate instantly with other systems outside of the car. It allows the car to communicate internet access and data with different devices for safety-critical applications inside and outside the automobile. Cars are expected to be connected using dedicated short-range communications or cellular radios, working in the FCC-granted 5.9 GHz band with very low latency. The connected car safety systems added capabilities over time, including GPS locations and having voice and data simultaneously.

Growth Drivers

Increased demand for improved user convenience, safety, and comfort

An enlargement in Advanced Driver Assistant System (ADAS) components in cars are the direct driver for the connected car market as these features provide improved levels of safety. Governments in various countries also focus on mandating different ADAS and safety features. There are different ADAS features mandated in Europe and the US. For example, Anti-lock Braking System (ABS) has been compulsory for all the latest vehicles sold in the EU since 2004, and Electronic Stability Control (ESC) became compulsory in 2014. Autonomous Emergency Braking (AEB) has been compulsory for all commercial vehicles marketed in the EU since 2015. Also, connected car features such as e-call have been compulsory in all recent cars sold within the EU since April 2018. As governments require various ADAS and other safety-related connected car features, the overall demand for connected cars has grown.

OPPORTUNITIES

The emergence of different technologies such as 5G and AI

The improved user experience for all connected cars depends on wireless connectivity. Multiple telecom industry players are constructing 5G to improve the safety and efficiency of connected cars. According to the international 5G automotive organizations, 68% of accidents can be detoured with the upcoming 5G technology. For example, the EU and South Korea have marked a deal to work jointly on 5G development, while both have pledged USD 782 million and USD 1.5 billion, respectively, in allowance for local 5G projects. In the UK, USD 78 million of allowance has been authorized for a 5G research facility, comprehended as the 5G Innovation Centre (5GIC). With the growing usage of sensors and other technologies accumulating data, AI will be key to creating a sense of everything. Many automobiles already operate AI for Level 3 autonomous driving, but for the industry to achieve Level 5, major enhancements must be completed to the cars and infrastructure.

RESTRAINTS

Lack of infrastructure for the accurate functioning of Connected Cars

Due to limited network connectivity on highways, vehicles are not related and the cloud. In developing & growing countries such as Mexico, Brazil, and India, IT infrastructure development on highways is slower than in developed economies. 3G and 4G-LTE communication networks demanded connectivity are only shown in urban and semi-urban areas. While several third-party logistics companies perform in semi-urban and rural areas, there are low or bad connectivity issues. Therefore, the absence of IT and communication infrastructure in developing regions and lag in government standards can hamper the development of the connected car market in these countries. Also, as providers of telecom services, industry players might evolve subject to country-specific telecom restrictions, such as lawful intercept and in-country entity conditions. The interoperability of the different platforms and the cross-border use cases will have to be examined and regulated. The reliance on data networks also raises the question of net neutrality, where internet service providers give some data transmission priority.

Pre Covid-19 impact on the globally Connected Car market

The factors such as growing demand for connected cars and multifunctional integrated motor control, and the latest technology and advancements in the car systems drive the market growth for the global car to connect. The advancement in global vehicle norms and the high cost of advanced suspension systems will inhibit the connected car market growth. However, the upgrade in demand for the lightweight suspension system and the result of progressive suspension systems are predicted to provide a more suitable opportunity for the market’s growth before the covid-19. Further, growing global urbanization, digitization and increasing demand for enhanced power productivity had created several opportunities for the digitally connected car market in the pre-covid era.

Covid-19 impact on the globally Connected Car market

A decrease in production in 2019and the COVID-19 pandemic has had a harsh impact on the automotive industry. It has resulted in disruptions in the supply of automotive components due to lockdowns imposed by governments. Leading automotive players such as Volkswagen, PSA Group, General Motors, Fiat and BMW have suspended production due to the outburst. This system is expected to influence the connected car market, as the growth of this market is presently related to the production of vehicles. Regardless, a steady recovery post-2020 in vehicle production will sustain the growth of this market. An increase in governments’ actions to develop intelligent transportation systems, increasing demand for smartphone features in the car, and automated driving technologies and passenger safety features will encourage the connected car market. The COVID-19 outburst has resulted in a decrease in vehicle production, which has, in turn, affected the overall connected car market. However, production has gradually started to resume in some countries.

Most OEMs and Tier I companies have undergone several supply troubles during the last few months due to the COVID-19 outbreak. Troubles in the supply chain hinder the supply of raw materials and components, resulting in production holds.

Post covid-19 impact on the globally Connected Car market

The automobile companies’ Collaborations with telecoms industries are helping automakers deploy cars with embedded connectivity faster than before. AT&T has more than 30 brands operating its network, some prominent ones being Ford, Chevrolet, Jaguar, BMW and Honda. On the other hand, Verizon’s affiliated car portfolio has a handful of OEMs, VW, and Mazda and Toyota, with plans to add more soon. AT&T is the selected telecom operator due to its data plans, customizations for complicated vehicle models, and collaborations with manufacturers to speed up examination and development in the connected car ecosystem.

By Form Segmental Analysis

The embedded connected car solution is predicted to hold a major share of the connected car market. The growth of embedded connected solutions in the long term can be characterized by various disruptive factors such as government mandates, cost optimization of service plans, and the growth of cloud-based services. According to GSMA, automakers are probably to adopt embedded solutions to meet regulatory provisions and cause the provision of vehicle-centric telematics services. Yet, widespread adoption will depend on devastating embedded solutions’ current restrictions. For example, EOBD (European version of OBD) is mandatory for all gasoline vehicles in the European Union.

However, at present, the embedded form is facing many challenges, such as the technical stability of connected components and services, the elevated cost of technology and products, and, most significantly, the system-level integration of all features and services. Many customers are forced to pay more for embedded connected car solutions and choose a smartphone to satisfy in-car connectivity. These challenges would restart to exist in the short term.

By Transponder segmental Analysis

The Onboard unit is expected to register the highest CAGR, and the onboard unit is one of the transponder classifications required for DSRC applications. Onboard transponder units are established in vehicles to support connected car solutions. Before, an onboard unit was used to record the location and speed of vehicles via GPS sensors. Nowadays, it can record data from numerous sensors and transmit the information through a remote server to other entities such as vehicle and transport infrastructure. As governments are interested in various activities to promote intelligent transportation systems in metro cities, many OEMs are participating in making smart transportation a reality. Therefore, companies from the automotive and non-automotive industries exhibit innovative V2V and V2I communications solutions. For example, the US transportation department has offered V2V communication in vehicles to decrease potential effects and improve the safety of passengers. Thus, with the growth in connected car adoption and developments in V2X infrastructure, the onboard unit is predicted to detect growth in the coming years.

By Region Segmental Analysis

The Asia Pacific connected car market is anticipated to register the most elevated growth rate during the forecast period. The Asia Pacific market is foreseen to notice the highest CAGR during the forecast period, mainly Japan and China. The growth of the US market is caused mostly by increasing vehicle safety and security standards, demand vehicle-to-vehicle (V2V) connectivity technology, and IoT incorporation in the automotive industry. The emergence of independent vehicle technology in the Asia Pacific connected car market is one of the key movements increasing the demand for developed connected car attributes. Japan has one of the largest connected car penetrations globally, with China predicted to witness considerable growth in the future years. Further, the growing demand for aftermarket services through the renewal of connected car service subscriptions will push the connected car services market in the coming years.

Competitor Analysis

Companies including Continental, Bosch, HARMAN, Airbiquity, Visteon, Cloudmade, Intellias, Verizon are the major key players globally connected car market.

Key Stakeholders

• Market Research and consulting firms
• Automobile manufacturers
• Investors
• Research organizations and consulting companies
• Technology providers
• Regulatory bodies

Recent Development

• In March 2023, Aeris contracted Ericsson’s IoT Accelerator and Connected Vehicle Cloud businesses and related assets. This purchase strengthens Aeris’ Connected Vehicle business, letting them to assist numerous Automotive OEMs in deploying, monetizing, and advancing their connected vehicle programs
• In November 2021, Continental created a technology solution for highly automated driving: an intelligent software that allows complex driving schemes autonomously. The Next Generation Driving Planner is an ingenious software solution that allows highly automated driving from Level 3. It indicates that vehicles can master confident driving tasks independently and without driver intervention. The software produced by Continental symbolizes a significant leap forward in driving intelligence.
• In June 2020, Bosch reported the launch of its new MEMS sensor, the SMI230, which provides trouble-free navigation and enables realistic visual vehicle movements. The SMI230 at Bosch has recently started; the first customers already get the sensor as standard.
• In January 2021, HARMAN announced HARMAN Turbo Connect (TBOT), a new smart software agent that expects and mitigates vehicle connectivity discrepancies on the road. The most recent solution in HARMAN’s telematics portfolio, HARMAN TBOT, meets the current demand for high-speed connectivity with low latency, particularly when operated alongside 5G-enabled technologies like HARMAN’s Smart Conformal Antenna and full 5G and 5G-ready Telecommunications Control Units (TCU).

Scope of the Report

Market Modelling

By Service ICE & EV

• OTA
• Navigation
• Cybersecurity
• Multimedia Streaming
• Social Media
• E-Call
• Autopilot
• Home Integration

By Hardware

• Intelligent Antenna
• Telematics Control Unit
• Keyless Entry System

By Form

• Embedded
• Tethered
• Integrated

By End Market

• OEM
• Aftermarket

By Transponder

• Onboard Unit
• Roadside Unit

By Network

• DSRC
• Cellular

By EV Service

• Navigation
• Remote Diagnostics
• Multimedia Streaming
• Cyber Security

By Region

• North America
• Europe
• Asia Pacific
• The Middle East & Africa
• South America

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Report Content

1.     Research Strategic Development

1.1.   Market Modelling

1.2.   Product Analysis

1.3.   Market Trend and Economic Factors Analysis

1.4.   Market Segmental Analysis

1.5.   Geographical Mapping

1.6.   Country Wise Segregation

2.     Research Methodology

2.1.   Identification of Target Market

2.2.   Data Acquisition

2.3.   Refining of Data/ Data Transformations

2.4.   Data Validation through Primary Techniques

2.5.   Exploratory Data Analysis

2.6.   Graphical Techniques/Analysis

2.7.   Quantitative Techniques/Analysis

2.8.   Visual Result/Presentation

3.     Executive Summary
4.     Market Insights

4.1.  Supply Chain Analysis

4.2.  Economic Factor Analysis

4.2.1.            Drivers

4.2.2.            Trends

4.2.3.            Opportunities

4.2.4.            Challenges

4.3.  Technological Landscape

4.4.  Competitors & Product Analysis

4.5.   Regulatory Framework

4.6.   Company market share analysis, 2022

4.7.  Porter’s Five forces analysis

4.8.  Price point analysis

4.9.  New Investment Analysis

5. Global Connected Car Market, 2017-2030

5.1.  Market size & Forecast, 2017-2030

5.1.1.            Demand

5.1.1.1.          By Value (USD Million)

5.1.2.            Consumption

5.1.2.1.          By Volume (In Units)

5.2.  Market Share & Forecast, 2017-2030

5.2.1.            By Service ICE & EV

5.2.1.1.          OTA

5.2.1.2.          Navigation

5.2.1.3.          Cybersecurity

5.2.1.4.          Multimedia Streaming

5.2.1.5.          Social Media

5.2.1.6.          E-Call

5.2.1.7.          Autopilot

5.2.1.8.          Home Integration

5.2.2.            By Hardware

5.2.2.1.          Intelligent Antenna

5.2.2.2.          Telematics Control Unit

5.2.2.3.          Keyless Entry System

5.2.3.            By Form

5.2.3.1.          Embedded

5.2.3.2.          Tethered

5.2.3.3.          Integrated

5.2.4.            By End Market

5.2.4.1.          OEM

5.2.4.2.          Aftermarket

5.2.5.            By Transponder

5.2.5.1.          Onboard Unit

5.2.5.2.          Roadside Unit

5.2.6.            By Network

5.2.6.1.          DSRC

5.2.6.2.          Cellular

5.2.7.            By EV Service

5.2.7.1.          Navigation

5.2.7.2.          Remote Diagnostics

5.2.7.3.          Multimedia Streaming

5.2.7.4.          Cyber Security

5.2.8.            By Region

5.2.8.1.          North America

5.2.8.2.          Europe

5.2.8.3.          Asia Pacific

5.2.8.4.          The Middle East & Africa

5.2.8.5.          South America

6. North America Connected Car Market, 2017-2030

6.1.  North America Connected Car Market size & Forecast, 2017-2030

6.1.1.            Demand

6.1.1.1.          By Value (USD Million)

6.1.2.            Consumption

6.1.2.1.          By Volume (In Units)

6.2.  North America Connected Car Market Share & Forecast, 2017-2030

6.2.1.            By Service ICE & EV

6.2.1.1.          OTA

6.2.1.2.          Navigation

6.2.1.3.          Cybersecurity

6.2.1.4.          Multimedia Streaming

6.2.1.5.          Social Media

6.2.1.6.          E-Call

6.2.1.7.          Autopilot

6.2.1.8.          Home Integration

6.2.2.            By Hardware

6.2.2.1.          Intelligent Antenna

6.2.2.2.          Telematics Control Unit

6.2.2.3.          Keyless Entry System

6.2.3.            By Form

6.2.3.1.          Embedded

6.2.3.2.          Tethered

6.2.3.3.          Integrated

6.2.4.            By End Market

6.2.4.1.          OEM

6.2.4.2.          Aftermarket

6.2.5.            By Transponder

6.2.5.1.          Onboard Unit

6.2.5.2.          Roadside Unit

6.2.6.            By Network

6.2.6.1.          DSRC

6.2.6.2.          Cellular

6.2.7.            By EV Service

6.2.7.1.          Navigation

6.2.7.2.          Remote Diagnostics

6.2.7.3.          Multimedia Streaming

6.2.7.4.          Cyber Security

6.2.8.            By Country

6.2.8.1.          US

6.2.8.2.          Canada

6.2.8.3.          Mexico

7. Europe Connected Car Market, 2017-2030

7.1.  Europe Connected Car Market size & Forecast, 2017-2030

7.1.1.            Demand

7.1.1.1.          By Value (USD Million)

7.1.2.            Consumption

7.1.2.1.          By Volume (In Units)

7.2.  Europe Connected Car Market Share & Forecast, 2017-2030

7.2.1.            By Service ICE & EV

7.2.1.1.          OTA

7.2.1.2.          Navigation

7.2.1.3.          Cybersecurity

7.2.1.4.          Multimedia Streaming

7.2.1.5.          Social Media

7.2.1.6.          E-Call

7.2.1.7.          Autopilot

7.2.1.8.          Home Integration

7.2.2.            By Hardware

7.2.2.1.          Intelligent Antenna

7.2.2.2.          Telematics Control Unit

7.2.2.3.          Keyless Entry System

7.2.3.            By Form

7.2.3.1.          Embedded

7.2.3.2.          Tethered

7.2.3.3.          Integrated

7.2.4.            By End Market

7.2.4.1.          OEM

7.2.4.2.          Aftermarket

7.2.5.            By Transponder

7.2.5.1.          Onboard Unit

7.2.5.2.          Roadside Unit

7.2.6.            By Network

7.2.6.1.          DSRC

7.2.6.2.          Cellular

7.2.7.            By EV Service

7.2.7.1.          Navigation

7.2.7.2.          Remote Diagnostics

7.2.7.3.          Multimedia Streaming

7.2.7.4.          Cyber Security

7.2.8.            By Country

7.2.8.1.          Germany

7.2.8.2.          UK

7.2.8.3.          France

7.2.8.4.          Italy

7.2.8.5.          Rest of Europe

8. Asia Pacific Connected Car Market, 2017-2030

8.1.  Asia Pacific Connected Car Market size & Forecast, 2017-2030

8.1.1.            Demand

8.1.1.1.          By Value (USD Million)

8.1.2.            Consumption

8.1.2.1.          By Volume (In Units)

8.2.  Asia Pacific Connected Car Market Share & Forecast, 2017-2030

8.2.1.            By Service ICE & EV

8.2.1.1.          OTA

8.2.1.2.          Navigation

8.2.1.3.          Cybersecurity

8.2.1.4.          Multimedia Streaming

8.2.1.5.          Social Media

8.2.1.6.          E-Call

8.2.1.7.          Autopilot

8.2.1.8.          Home Integration

8.2.2.            By Hardware

8.2.2.1.          Intelligent Antenna

8.2.2.2.          Telematics Control Unit

8.2.2.3.          Keyless Entry System

8.2.3.            By Form

8.2.3.1.          Embedded

8.2.3.2.          Tethered

8.2.3.3.          Integrated

8.2.4.            By End Market

8.2.4.1.          OEM

8.2.4.2.          Aftermarket

8.2.5.            By Transponder

8.2.5.1.          Onboard Unit

8.2.5.2.          Roadside Unit

8.2.6.            By Network

8.2.6.1.          DSRC

8.2.6.2.          Cellular

8.2.7.            By EV Service

8.2.7.1.          Navigation

8.2.7.2.          Remote Diagnostics

8.2.7.3.          Multimedia Streaming

8.2.7.4.          Cyber Security

8.2.8.            By Country

8.2.8.1.          China

8.2.8.2.          India

8.2.8.3.          Japan

8.2.8.4.          Australia

8.2.8.5.          Rest of Asia pacific

9. The Middle East & Africa Connected Car Market, 2017-2030

9.1.  The Middle East & Africa Connected Car Market size & Forecast, 2017-2030

9.1.1.            Demand

9.1.1.1.          By Value (USD Million)

9.1.2.            Consumption

9.1.2.1.          By Volume (In Units)

9.2.  The Middle East & Africa Connected Car Market Share & Forecast, 2017-2030

9.2.1.            By Service ICE & EV

9.2.1.1.          OTA

9.2.1.2.          Navigation

9.2.1.3.          Cybersecurity

9.2.1.4.          Multimedia Streaming

9.2.1.5.          Social Media

9.2.1.6.          E-Call

9.2.1.7.          Autopilot

9.2.1.8.          Home Integration

9.2.2.            By Hardware

9.2.2.1.          Intelligent Antenna

9.2.2.2.          Telematics Control Unit

9.2.2.3.          Keyless Entry System

9.2.3.            By Form

9.2.3.1.          Embedded

9.2.3.2.          Tethered

9.2.3.3.          Integrated

9.2.4.            By End Market

9.2.4.1.          OEM

9.2.4.2.          Aftermarket

9.2.5.            By Transponder

9.2.5.1.          Onboard Unit

9.2.5.2.          Roadside Unit

9.2.6.            By Network

9.2.6.1.          DSRC

9.2.6.2.          Cellular

9.2.7.            By EV Service

9.2.7.1.          Navigation

9.2.7.2.          Remote Diagnostics

9.2.7.3.          Multimedia Streaming

9.2.7.4.          Cyber Security

9.2.8.            By Country

9.2.8.1.          Saudi Arabia

9.2.8.2.          UAE

9.2.8.3.          South Africa

9.2.8.4.          Rest of The Middle East & Africa

10. South America Connected Car Market, 2017-2030

10.1.1.        Demand

10.1.1.1.      By Value (USD Million)

10.1.2.        Consumption

10.1.2.1.      By Volume (In Units)

10.2.                    South America Connected Car Market size & Forecast, 2017-2030

10.3.                    South America Connected Car Market Share & Forecast, 2017-2030

10.3.1.        By Service ICE & EV

10.3.1.1.      OTA

10.3.1.2.      Navigation

10.3.1.3.      Cybersecurity

10.3.1.4.      Multimedia Streaming

10.3.1.5.      Social Media

10.3.1.6.      E-Call

10.3.1.7.      Autopilot

10.3.1.8.      Home Integration

10.3.2.        By Hardware

10.3.2.1.      Intelligent Antenna

10.3.2.2.      Telematics Control Unit

10.3.2.3.      Keyless Entry System

10.3.3.        By Form

10.3.3.1.      Embedded

10.3.3.2.      Tethered

10.3.3.3.      Integrated

10.3.4.        By End Market

10.3.4.1.      OEM

10.3.4.2.      Aftermarket

10.3.5.        By Transponder

10.3.5.1.      Onboard Unit

10.3.5.2.      Roadside Unit

10.3.6.        By Network

10.3.6.1.      DSRC

10.3.6.2.      Cellular

10.3.7.        By EV Service

10.3.7.1.      Navigation

10.3.7.2.      Remote Diagnostics

10.3.7.3.      Multimedia Streaming

10.3.7.4.      Cyber Security

10.3.8.        By Country

10.3.8.1.      Brazil

10.3.8.2.      Argentina

10.3.8.3.      Rest of South America

11. Competitor Analysis

11.1. Company Description

11.2. Financial Analysis

11.3. Key Products

11.4. Key Management Personnel

11.5. Contact Address

11.6. SWOT Analysis

11.7. Company profile

11.7.1.        Continental

11.7.2.        Bosch

11.7.3.        HARMAN

11.7.4.        Airbiquity

11.7.5.        Visteon

11.7.6.        Cloudmade

11.7.7.        Intellias

11.7.8.        Tesla

11.7.9.        Verizon communications

11.7.10.   Other Prominent Players.