The global connected cars market size was valued at USD 96.8 billion in 2019. The global connected cars market is primarily driven by high adoption in the telematics segment. Moreover, safety & security is fueling the global connected cars market growth. Automobile manufacturers highly focus on providing effective connectivity solutions in their vehicle to upscale their automobile sales. However, this leads to escalating the need for connectivity. Moreover, integrating connectivity solutions in the vehicle is considered as the topmost priority for automobile manufacturers, as consumers are expecting their vehicles to perform tasks the same as smart devices.
The global connected cars market confirmed remarkable growth in recent years. Major driving factors influencing the global connected cars market include an increase in the demand for safer, efficient, and convenient driving experiences, and government mandates for connected cars applications. Moreover, connected cars facilitate connectivity on wheels while offering comfort, safety, security and performance coupled with network technology. This help drivers connect with online platforms leading to real-time communication.
Connected Cars Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 96.8 billion|
|Growth Rate||CAGR of 17% during 2021-2028|
|Segment Covered||Connectivity Type, Application, Component, Provider, Connection Channel, Vehicle Connectivity, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East & Africa|
|Key Players Profiled||Harman, VW, Bosch, Mercedes Benz, Daimler, Google, Visteon, Uber, Amazon, Airbiquity, Harman, Microsoft (Azure), Continental Corporation, Qualcomm, Apple, NXP, Intel, Delphi, AT&T, Tech Mahindra, Tesla, Volvo and BMW.|
Key Segments of the Global Connected Cars Market
Applications Overview, 2018-2028 (USD Billion)
- Driver Assistance
Connectivity Type Overview, 2018-2028 (USD Billion)
- Integrated Telematics
Component Overview, 2018-2028 (USD Billion)
Provider Overview, 2018-2028 (USD Billion)
Connection Channel Overview, 2018-2028 (USD Billion)
- Cellular Network
Vehicle Connectivity Overview, 2018-2028 (USD Billion)
Regional Overview, 2018-2028 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global Connected Cars market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global Connected Cars market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the Connected Cars industry and their strategic initiatives for the product development
- The study covers a qualitative and quantitative analysis of the market segmented based on organization type, component, deployment, and application. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global Connected Cars market. The report will benefit:
- Every stakeholder involved in the Connected Cars market.
- Managers within the Tech companies looking to publish recent and forecasted statistics about the global Connected Cars market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of global Connected Cars market.
- Analysts, researchers, educators, strategy managers, and academic institutions looking for insights into the market to determine future strategies.
In the automotive industry, the connected cars, autonomous vehicles and electric vehicles have gained a lot of importance recently. In the past few years, total investments of about USD 100 billion has been made in this field by many companies automotive and non-automotive both. Till date VW has made the largest investment in connected cars industry of about USD 54.2 billion. Many non automotive technology companies are also making investments in the field of connected cars, due to the lucarative size of opportunities offerd by the growing connected, electric and autonomous cars. For instance Samsung has made second highest investment of about USD 8 billion to date.The major reason for such huge investments by non automotive players in this industry is the size of opportunity offered by IOT in automotive.
The connected car offers new opportunities to strengthen relationships, differentiate, build customer loyalty and cater value throughout the automotive value chain. These institutes must appropriately acquire the necessary skill sets, prioritize business goals, choose the right digital platform and appoint digital leadership. With the help of the right digital platform, the connected cars get the proper support the development and version control of apps and services and deliver an optimized user experience inside and outside the vehicle. It will do all this while making safety the number one priority through proper security controls. The API has emerged as the key component of this digital platform.
Based on application, the global connected cars market is primarily segmented into mobility, telematics, infotainment, driver assistance, and others. Application segment is dominated by telematics and it occupies 34% of market share in the year 2019. With the help of telematics solutions, the user can monitor vehicle information to improve driver safety and schedule regular maintenance. Apart from that, in-vehicle infotainment (IVI) is widely used in connected cars. It is the collection of both software and hardware in automobiles that offer a combination of entertainment and information in the form of audio and video content, social networking, games, etc. The in-vehicle infotainment system is gaining traction as they typically come with vehicle diagnostics and navigation which help the drivers to have safer journeys.
Connectivity Type Segment
Based on the connectivity type, the global connected cars market is segmented into embedded, integrated and tethered. Integrated type of connectivity is anticipated to grow at higher CAGR in the next couple of years as a reflection of the surging importance of smartphones and Apps. While embedded connectivity is seen too costly for most telematics services, but the factors that may trigger the growth includes shared data plans, telematics mandates, and web-based apps will possibly improve the prospects for embedded solutions. .
Based on component type, the global connected cars market is segmented into software and hardware. Hardware components of the connected cars enable the car to perform important functions such as communicate, move and see but the software segment is the brain of the car. In the forthcoming years, the software segment is anticipated to grow at 28% CAGR as it processes information related to the environment so that the car comprehend and intelligently take action –whether to stop, move, slow down, etc.
Based on the region, the global connected cars market is segmented into North America, Europe, Asia-Pacific, South America, and Middle East & Africa. Europe will be dominating the anti-aging market with an estimated market share of 35% in the year 2028. The presence of a major market in countries such as Germany, UK, France, Spain, and REU will be primarily driving the market in Europe. The factors such as increased demand for safety features is a strongest driving force as consumers highly value safety features in their cars and there is a significant shift in customer expectations for higher wireless and mobile penetration, encouraging new business models and opportunities for the connected car market. With the growing number of connected devices per customer, the telecom industry is likely to witness revolutionary pricing models. Solutions like split billing, data plans, and reprogrammable SIMs could facilitate attractive pricing models for connectivity solutions.
The factors that may hamper the growth of Europe connected cars market includes drivers lesser concern toward enhancing a car. Along with that, according to GfK, UK has the least happy drivers when compared to countries like Brazil, Russia, China, Germany, and the US. Another factor includes, mobiles are frequently replaced which is within a year but the average lifespan of a car is more than eight years which may create issues related to technology obsolescence among customer using mobile-based hardware in the car.
The major players of global connected Harman, VW, Bosch, Mercedes Benz, Daimler, Google, Visteon, Uber, Amazon, Airbiquity, Harman, Microsoft (Azure), Continental Corporation, Qualcomm, Apple, NXP, Intel, Delphi, AT&T, Tech Mahindra, Tesla, Volvo, and BMW. Acquisitions and mergers are strived upon by most of the industry giants to get a strong foothold in the market. For instance, The WSJ reported that Qualcomm is likely to acquire Netherlands-based NXP Semiconductors for more than USD 30 billion. The deal would make Qualcomm the largest supplier of chips for cars.