North America Connected Car Market Outlook, 2029

North America Connected Car Market Outlook, 2029

The connected car industry in North America is leading the way in automotive innovation, embodying the convergence of cutting-edge technology and transportation. This dynamic industry is changing driving in a world where connection, convenience, and safety are the most sought-after goals. Car manufacturers and IT behemoths in North America are pushing the limits of what's feasible on the road with innovations ranging from sophisticated entertainment systems to autonomous driving capabilities. The market pulsates with a plethora of offerings, including telematics solutions, in-car connectivity features, and vehicle-to-everything (V2X) communication systems, all aimed at enhancing efficiency, comfort, and safety for drivers and passengers alike. As consumer demand for seamless connectivity continues to soar, the North American connected car market is poised for exponential growth, driving forward a revolution that promises to reshape the future of mobility. 30 million new connected cars were sold globally in 2020. In 2020, the United States accounted for the highest proportion of sales of connected automobiles. Approximately 80% or more of all passenger automobiles sold have connectivity. That amounts to more than 10 million linked cars sold in the US alone. North American consumers have a strong appetite for in-car entertainment and connectivity features. As a result, automakers are continually innovating to deliver immersive infotainment experiences, integrating features such as voice-controlled navigation, streaming media, and smartphone integration seamlessly into vehicle dashboards. In major metropolitan areas across North America, connected car technologies are driving the development of innovative urban mobility solutions. From ride-sharing platforms to autonomous shuttle services, these initiatives leverage connectivity to optimise traffic flow, reduce congestion, and enhance the overall efficiency of urban transportation networks.

According to the research report ""North America Connected Car Market Outlook, 2029,"" published by Bonafide Research, the North America Connected Car market is projected to add more than USD 30 Billion from 2024 to 2029. Connected car technologies provide drivers and passengers with never-before-seen levels of convenience and connectivity in a fast-paced world where convenience is highly prized. North Americans are quick to accept connected automobile technology that simplifies and expedites their lives, whether it's operating vehicle operations remotely through smartphone applications, streaming music, or getting real-time traffic data. As well as a growing awareness of road safety issues, North American consumers increasingly prioritise connected car features designed to enhance safety and prevent accidents. Advanced driver assistance systems (ADAS), such as lane departure warning, automatic emergency braking, and adaptive cruise control, are highly sought after, reflecting a cultural shift towards safer driving practices. When it comes to their cars, North American customers value personalisation and customisation possibilities. Drivers customise their driving experience with a plethora of customisable features and settings available on connected car platforms. Customised temperature control settings and personalised navigation routes are only two examples of how connected automobiles accommodate different likes and preferences. While fully autonomous vehicles are still in the early stages of development and deployment, there is a cultural acceptance and curiosity about the potential of self-driving cars in North America. Tech hubs such as Silicon Valley and cities like Toronto and Austin serve as hotbeds of innovation, driving cultural discourse and experimentation around the future of mobility and autonomy.

Market Drivers
• Technological Innovation: The continuous advancement of technology is a key driver of the North American connected car market. Innovations in areas such as artificial intelligence, the internet of things (IoT), and telecommunications enable the development of advanced connected car features and services. These innovations include enhanced connectivity, real-time data analysis, and autonomous driving capabilities, which improve safety, convenience, and the overall driving experience for consumers.
• Consumer Demand: Increasing consumer demand for connectivity, safety, and convenience features in vehicles is another major driver of the North American connected car market. Modern consumers expect their vehicles to offer seamless integration with their digital lives, including smartphone connectivity, navigation assistance, and in-car entertainment options. As a result, automakers are investing heavily in connected car technologies to meet these consumer expectations and remain competitive in the market.

Market Challenges
• Data Privacy and Security Concerns: One of the significant challenges facing the North American connected car market is the issue of data privacy and security. Connected cars collect and transmit vast amounts of sensitive data, including personal information, location data, and vehicle diagnostics. Ensuring the privacy and security of this data is crucial to maintaining consumer trust and complying with regulatory requirements. Concerns arise regarding unauthorised access, data breaches, and potential misuse of personal information, highlighting the need for robust data protection measures and transparent privacy policies.
• Cybersecurity Risks: Connected cars are vulnerable to cybersecurity threats, including hacking, malware, and ransomware attacks. As vehicles become increasingly connected and autonomous, the potential consequences of cyberattacks pose significant safety risks to drivers, passengers, and road users. Cybersecurity risks include unauthorised access to vehicle systems, remote control of critical functions, and interference with vehicle operation. Addressing these risks requires the implementation of robust cybersecurity measures, such as encryption, intrusion detection systems, and over-the-air software updates, to protect connected car systems from cyber threats and ensure the safety and security of vehicles on the road.

Market Opportunity
• Integration with Smart Cities: Connected cars present an opportunity for integration with smart city infrastructure in North America. By leveraging vehicle-to-infrastructure (V2I) communication, connected cars can interact with traffic lights, road sensors, and other smart city systems to optimise traffic flow, reduce congestion, and improve overall transportation efficiency. This integration enables the development of intelligent transportation systems (ITS) that enhance safety, reduce emissions, and create more sustainable urban environments.
• Emerging Mobility Services: The North American connected car market offers opportunities for the development of emerging mobility services that leverage connected car technologies. These services include ride-sharing platforms, car-sharing programmes, and subscription-based mobility services that provide consumers with flexible and convenient transportation options. Connected cars enable seamless connectivity between vehicles, users, and service providers, facilitating the development of innovative mobility solutions that cater to changing consumer preferences and urban mobility needs.

Based on the technology, it is segmented into 4G/LTE, 3G, and 5G. In North America, 4G/LTE contributes the highest market share. This includes increasing consumer demand for seamless connectivity, enhanced safety features, and advanced infotainment systems. Furthermore, in terms of the end user, they are segmented into OEMs and aftermarket.

North America boasts extensive 4G/LTE coverage, with robust cellular networks spanning urban, suburban, and rural areas. The widespread availability of 4G/LTE infrastructure provides reliable connectivity for connected cars across diverse geographic regions, making it a practical choice for automakers and consumers alike. 4G/LTE networks offer high-speed data transmission and low latency, enabling real-time communication between connected cars and external services. This fast and reliable connectivity is essential for delivering advanced features such as real-time navigation, streaming media, and remote vehicle diagnostics, enhancing the overall user experience. 4G/LTE has become an industry standard for wireless communication in the automotive sector, with widespread adoption by automakers and technology providers. Standardisation facilitates interoperability between different connected car systems and ensures compatibility with existing infrastructure and services, driving the widespread adoption of 4G/LTE technology in North America. Furthermore, the aftermarket as the end user of the connected car significantly contributes to the market; North America has a large existing vehicle fleet, with many cars on the road that were manufactured before the widespread integration of connected car technologies. The aftermarket provides an opportunity to retrofit these older vehicles with connected car features, such as aftermarket telematics devices, infotainment systems, and safety enhancements, thereby extending the lifespan and functionality of existing vehicles. There is a growing demand among North American consumers for retrofit solutions that add connectivity and smart features to their vehicles. Many drivers want to enjoy the benefits of connected car technologies, such as GPS navigation, remote vehicle monitoring, and smartphone integration, without purchasing a new vehicle. Aftermarket solutions cater to this demand by offering affordable and customisable options for upgrading existing vehicles with connected car capabilities.

In terms of connectivity, solutions are bifurcated into integrated, embedded, and tethered. According to the report, applications are segmented into Driver Assistance, Safety, Infotainment, Telematics, Fleet Management (Vehicle), Mobility Management, and Others.

Embedded as the connectivity solutions of the connected car are growing with the highest growth rate, many automakers in North America are increasingly incorporating embedded connectivity solutions as standard features in their vehicles. This adoption reflects the growing consumer demand for connected car features and the desire of automakers to differentiate their vehicles, enhance customer satisfaction, and remain competitive in the market. Embedded connectivity solutions offer enhanced security and privacy compared to external devices or smartphone-based solutions. By leveraging secure onboard systems and encryption protocols, embedded technology helps protect sensitive vehicle data from unauthorised access, hacking, and cyber threats, addressing concerns about data security and privacy in connected cars. Furthermore, safety is growing in the connected car market. There is growing awareness and concern about road safety in North America, driven by factors such as distracted driving, impaired driving, and the rising number of traffic accidents and fatalities. Connected car technologies offer solutions to address these safety concerns by providing features such as collision avoidance systems, lane departure warnings, and emergency braking assistance, which help prevent accidents and mitigate risks on the road. Government regulations and mandates related to vehicle safety are driving the adoption of connected car safety applications in North America. Organisations such as the National Highway Traffic Safety Administration (NHTSA) in the United States and Transport Canada require automakers to incorporate safety features such as automatic emergency braking, forward collision warning, and pedestrian detection systems in new vehicles, incentivizing the integration of connected car technologies that enhance safety.

Based on the report, the major countries covered include the USA, Canada, Mexico, and the rest of North America.

In North America, the USA leads the connected car market. The USA is home to many leading technology companies and startups focused on automotive innovation and connected car technologies. Companies such as Tesla, General Motors, and Ford are headquartered in the USA and play a significant role in shaping the future of the connected car market through research, development, and investment. The USA has a large and established automotive industry, with major automakers producing millions of vehicles annually. These automakers have the resources and expertise to develop and integrate connected car technologies into their vehicles, driving innovation and adoption in the market. American consumers have a strong appetite for technology and innovation, and they often prioritise vehicles with advanced features and connectivity options. The demand for connected cars in the USA is driven by factors such as convenience, safety, entertainment, and environmental consciousness, leading automakers to prioritize the integration of connected car technologies into their vehicles. The USA has a well-developed infrastructure to support connected car technologies, including robust telecommunications networks, high-speed internet connectivity, and advanced transportation systems. This infrastructure provides the necessary framework for connected cars to communicate with each other, with roadside infrastructure, and with external services, facilitating the widespread adoption of connected car technologies.

The competitive landscape of the connected car market is dynamic and characterized by the presence of diverse players spanning automotive manufacturers, technology companies, telecommunications providers, and startups. These entities contribute to the development, integration, and proliferation of connected car technologies. Traditional automotive manufacturers play a significant role in the connected car market by integrating connectivity features directly into their vehicles. Companies such as General Motors, Ford, Toyota, and BMW are incorporating advanced infotainment systems, telematics, and driver assistance technologies into their vehicles. OEMs often collaborate with technology partners to enhance their connected car offerings. Technology giants are increasingly entering the connected car space, leveraging their expertise in software, artificial intelligence, and cloud computing. Companies like Apple, Google (through Android Auto), and Microsoft are developing platforms and ecosystems that seamlessly integrate with connected vehicles, providing services such as voice-activated controls, navigation, and in-car entertainment. The success of connected cars relies heavily on robust communication networks. Telecommunications companies like Verizon, AT&T, and Vodafone play a crucial role by providing the necessary connectivity infrastructure, including 4G and 5G networks. These providers are pivotal in enabling real-time data transfer, over-the-air updates, and other connected car services. Automotive suppliers, often referred to as Tier 1 suppliers, contribute essential components and systems to connected cars. Companies like Bosch, Continental, and Denso specialize in providing sensors, communication modules, and other hardware crucial for the functioning of connected car technologies. These suppliers work closely with OEMs to integrate advanced systems seamlessly. The connected car market is also influenced by a multitude of startups and niche players specializing in specific aspects of connectivity. These include companies focusing on cybersecurity for connected vehicles (e.g., Argus Cyber Security), AI-powered navigation (e.g., WayRay), and advanced driver assistance systems (e.g., Mobileye). These players often bring innovation and agility to the market, contributing to its overall dynamism.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Connected Car market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology
• 4G/LTE
• 3G
• 5G

By Connectivity Solutions
• Integrated
• Embedded
• Tethered

By Application
• Driver Assistance
• Safety
• Infotainment
• Telematics
• Fleet Management (Vehicle)
• Mobility Management
• Others

By End Market
• Original Equipment Manufacturer (OEMs)
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Connected Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.