Adroit Market Research - Industry Insights

The global automotive market has been witnessing a revolution since the past few decades, with innovative digital technologies it has made huge inroads in vehicles. Recently, lot of focus is being given to connected transportation which provides improved connectivity such as vehicle communicating to each other to know their location, and remote communication services to the occupiers of the car. The functionality is empowered by the number of technologies such as vehicle to infrastructure, vehicle to vehicle communication, vehicle informatics, and vehicle telematics which provides several services like smart tracking and routing, real-time street updates, roadside assistance, on-board ent

The global automotive market has been witnessing a revolution since the past few decades, with innovative digital technologies it has made huge inroads in vehicles. Recently, lot of focus is being given to connected transportation which provides improved connectivity such as vehicle communicating to each other to know their location, and remote communication services to the occupiers of the car. The functionality is empowered by the number of technologies such as vehicle to infrastructure, vehicle to vehicle communication, vehicle informatics, and vehicle telematics which provides several services like smart tracking and routing, real-time street updates, roadside assistance, on-board entertainment, automatic parking, and many others.

Growing demand for efficient, safer, and convenient driving, increase in industry obedience regulations and government approval for supporting connected technology in traveler cars are some of the major factors driving the market growth. Though, huge network infrastructure in emerging countries and increasing the risk of cyber security of smart vehicles is hampering the connected cars market.

A connected car maintains the huge area connection and also LAN (Local Area Network). Through these confections the car can send and receive information or data relevant to the route/trip and the performance or condition of the car. Growing number of vehicles are entering the market with the abilities to support communication of several sorts.

In the year 2013, around 1 million sensors were vended to the automotive industry. However, integrated and tethered solutions have conquered car connectivity to data. Integrated connectivity solutions stated in 2014 with a number of vehicles growing in the year 2015 and beyond. Stimulating the development in connected car solutions entering to market have number of major drivers including:

• Regulations

The influence of government rules on the pace and trend of connected car growth will be substantial. Many governments, specifically in Europe, distinguish security benefits of connected car growth may put government regulations in place instructing certain facets of connectivity to ne integrated in modern vehicle fetched to market.

• Standardizations

In recent years, many new technologies are developing in the connected car industry. Due to the high value in the connected car space to communicate with each other. It is also important to note that such vehicles need to well equipped with changing technologies are compatible.

• LTE Deployment

LTE’s low latency and bandwidth are likely to enable high definition video and audio streaming. It allow real-time video diagnostics. Also offers more appropriate real-time traffic information.

Connected car market

Autonomous and safety driving are the highest categories, accounting for around 61% of the total market for connected cars. In the leading automobile sector, spend on digital technology is likely to reach to around 10% of the total vehicle sales by the end of 2021. Tier-1 and OEMs are creating the research and development investments. The volume segment of connected cars made for middle class consumers is also witnessing the basic connectivity functions.

Some benefits of connected cars:

• Saves time and Money

You can save your money and time by using connected cars. These cars will notify you the real-time information about the road and traffic condition. It will improve the road optimization that enables you to avoid traffic jam. With this, you can save your time. Connected cars also save the fuel consumption which ultimately save your money.

• Improves safety

Connected cars enables the automobiles to communication with each other. This will give significant information regarding the speed breakers, barriers, congestion, traffic jam, danger turns, and many others. These cars can trace the momentum and closeness of the nearby vehicles.

• Enabled Infotainment in Cars

Connected cars now integrating with tech companies which improve the experience of drivers. Huge number of cars supports the digital technology in which the connected car recognizes the in-car infotainment. Also, drivers can have their favorite songs, music, video, news, movies, and other information easily.

• Improvised Navigation

Nowadays, most of the cars has in-built GPS based navigation functions. However, connected cars have smart navigation system equipped with location-based service. Furthermore, based on the car’s fuel tank, it will inform you to stop at the nearby fuel station.

Future of Connected Cars

In the coming years customers will suppose car connectivity as a standard feature in all vehicles. However, navigation systems and back-up cameras are offered in vehicles today. Vehicle connectivity will include Wi-Fi, cellular networks, and Bluetooth. With this evolution and expectation will produce high number of revenue generating opportunities for manufacturers. OEMs should be ready to create relationship with Tier ones and mobile carriers, to form control points. Due to the complexity and high incorporation of all devices in a connected vehicles.

Like maintenance and fuel, customers will begin to fund connectivity of their own vehicles periodic expense that can occur by several touch points. The potentials of revenue generation through these cars are boundless like when car driver is filling up gas, he can pay through a connected car wallet. The future of connected cars certainly comprises home and car connectivity for app, bundling of mobile, entertainment and data services for highly integrated user experience. Innovation transporters must to perfect with in-car user experience which will be thrilling for customers.

It is predicted that by the end of 2020 there will be around 250 million connected cars on the road and innovative techniques for revenue generation will be a major hit.