At a compound annual growth rate of 18.8%, the size of the worldwide Connected Cars market is projected to reach $373.4 billion in 2030.

Connected cars are automobiles that can communicate with mobile devices such as smartphones and tablets, have internet connection built in, and are able to self-optimize their performance at predetermined intervals. Its connection to the network can exchange data with several devices located inside and outside of the vehicle. The data from the vehicle are communicated with one another with the use of RADAR, LiDAR, and other modern sensors. When a car is connected to many devices, the driver can get real-time data about the area around the vehicle, which helps improve the vehicle's overall safety. The critical goals of the implementation of linked cars are the prevention of crashes, the lessening of the number of fatalities, and the enhancement of the effectiveness of vehicle management.

Covid-19 Impact

As long as lockdowns continue occurring at random, which will result in fewer people using their vehicles, the short-term outlook for new sales remains questionable. The shortage of semiconductors, which has already resulted in multiple production halts for large manufacturers, will significantly decrease sales. However, despite the limited availability of cash, the desire for private means of mobility continues to develop, which has led to a significant increase in the number of purchases made of previously owned items. This will assist in partially offsetting the lower sales that were seen. Companies at all stages of the automotive supply chain have the opportunity to concentrate on enhancing the connection of their various services and products. Other examples include: This makes it feasible to trace the disease's progression and put a halt to its further spread, in addition to ensuring the hygiene and cleanliness of the cars. Additionally, automotive original equipment manufacturers (OEMs) are optimizing their research and development budget to emphasize connected vehicle programs. For instance, in February of 2021, Ford and Google established a one-of-a-kind strategic alliance to accelerate Ford's transition and reinvent the experience of being in a connected vehicle. As part of this brand-new relationship that will last for a period of six years beginning in 2023, Android will serve as the primary operating system for millions of Lincoln and Ford automobiles of the future, with built-in Google applications and services.

Asia-Pacific will dominate the Global Connected Cars Market

As a result of the increased use of high-end and cost-efficient connection solutions, the Asia Pacific region is anticipated to lead the connected car market share. A further factor that has contributed to the expansion of the connected vehicle market in this region is the growing desire among consumers for in-vehicle integrated connection systems and the general trend toward connected automobiles.

Europe will see a stable growth rate in the period of interest

Due to the various development initiatives that have been conducted by governments all over Europe and essential vital players in this region, it is anticipated that Europe will be the second-largest region in this market. The early adoption of more cutting-edge technologies was made possible by expanding partnerships and collaborations among the most important market players. For instance, Parkopedia and Volkswagen collaborated in January 2017 to produce high-definition autonomous driving (HAD) Parking Maps. These maps aimed to provide clients with comprehensive information regarding parking places.

The Satellite segment will dominate the Global Connected Cars Market

Over the period of interest, it is anticipated that the satellite segment will record the highest rate of growth. Only in urban areas are there enough mobile towers for cellular and Wi-Fi networks to enable linked vehicles. This means that connected vehicles can only be used in cities. As soon as the vehicle passes the perimeter of the mobile tower, the connection to the network is severed entirely, potentially creating significant difficulties for the people traveling in connected vehicles. To find a solution to this issue and maintain continuous communication, a number of original equipment manufacturers (OEMs), satellite operators, and mobile network operators are working on the development of hybrid satellite-terrestrial networks. As a result, it is anticipated that the connected automobile industry will be propelled forward by the growing demand for satellite and 5G networks.

In the year 2020, the global market had a significant drop of -12.1%. The market is anticipated to expand at a compound annual growth rate (CAGR) of 18.1% over the period 2022-2029, rising from a value of USD 59.70 billion in 2021 to USD 191.83 billion in 2029.

To put it in the most basic terms, a connected car system is one in which automobiles are connected to a wireless network. This gives the automobile the capability of exchanging real-time data with the outside world and even of controlling certain operations remotely. With all of these characteristics, a linked car system is the best option in the event of an accident or any other kind of emergency.

Car purchasers are becoming more aware of the availability of surveillance systems that can keep an eye on their vehicles and provide them with up-to-date information regarding their location as a direct result of the growing number of thefts of motor vehicles. When the mobile device is connected to the infotainment system of the vehicle, the system will keep a record of the passenger's travel history. This record may include the location of the passenger's most recent travel destination, the number of stops that have occurred in between, and other information that may make travel unsafe. Devices such as TravelEyes2, ProScout, and LoJack are being installed in privately owned automobiles by their owners in an effort to deter the theft of personal information. These systems communicate with the owners' mobile phones, allowing them to lock and unlock their vehicles with the push of a single button.

In addition, regulatory agencies have implemented rigorous criteria in order to cut down on the increasing number of instances of data theft. For example, Thales has formed a partnership with the PSA Group, which is responsible for manufacturing Citroen and Peugeot automobiles, in order to determine the security risks, devise a method for determining these risks, and take the necessary precautions in order to keep the vehicle safe and secure. As a direct response, companies that produce automobiles have acknowledged the critical nature of the circumstance and are actively collaborating with industry experts.

To put it in the most basic terms, a connected car system is one in which automobiles are connected to a wireless network. This gives the automobile the capability of exchanging real-time data with the outside world and even controlling certain operations remotely. With all of these characteristics, a linked car system is the best option in the event of an accident or any other kind of emergency.

Denso, Bosch, Mercedes-Benz, Fiat Chrysler Automobiles, Honda Motors, Bavarian Motor Works, General Motors, Delphi, Audi AG, Continental, and Harman are some of the major players that are active in the global market for connected cars. Other major players include Bavarian Motor Works and General Motors.

Recent Development

• One of the most important trends in this industry is the increasing incorporation of cybersecurity solutions into automobile safety systems. Over the course of the past few years, data has emerged as one of the most critical components in the automobile sector.
• The user's smartphone is synchronized with the vehicle's information and entertainment system in connected vehicles. The data of the user may include financial and medical information, both of which have a significant risk of being compromised in the event of a hack.
• Tech behemoths such as Google and Apple are working on developing cybersecurity applications for automobiles in order to stop data from being stolen. These applications have high user-friendliness, monitor the car's safety, and alert the user if an unauthorized third party log in from another device.
• For instance, DENSO and Dellfer agreed to develop ZeroDayGaurd 1.0 as a cybersecurity solution for the automotive industry. This partnership was formalized through a joint development agreement.

Connected Cars Market Scope

Key segments in ‘Global Connected Cars Market’

By Type, 2019-2029 (USD Million)

• Satellite
• 3G
• 4G
• 5G

By End-User, 2019-2029 (USD Million)

• Commercial
• Residentials

By Application, 2019-2029 (USD Million)

• Telematics
• Infotainment
• Mobility Management
• Driver Assistance

By region, 2019-2029 (USD Million)

• North America
  • United States of America
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Italy
  • the Netherlands
  • Poland
  • Russia
  • The United Kingdom
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Indonesia
  • South Korea
  • Rest of Asia-Pacific
• South America
  • Argentina
  • Brazil
  • Peru
  • Uruguay
  • Rest of South America