Global Connected Cars Market - 2023-2030

Global Connected Cars Market - 2023-2030

The Global Connected Cars Market reached US$ 23.5 billion in 2022 and is expected to reach US$ 56.2 billion by 2030, growing with a CAGR of 18.5% during the forecast period 2023-2030.

The market for connected cars is expected to proliferate as the technology enables wheel connectivity and offers comfort, convenience, performance, safety and security. Applications for connected car safety are invented to enhance situational awareness and reduce traffic accidents through communications between vehicles and infrastructure (V2I) and vehicles(V2V) and each other.

Real-time communication becomes possible by connecting the driver to online platforms. During the forecast period, the embedded segment will hold a significant share of the global connected cars market. The rise of cloud-based services, government regulations, cost-cutting in service plans and other factors have all driven the expansion of associated embedded solutions.

Market Dynamics

Rising Government Regulations Regarding Safety

Growing ADAS car production due to passenger comfort, safety awareness and government legislation mandating safety features is expected to drive the connected cars market demand. Governments worldwide focus on developing several legislative policies and regulations to govern and ensure their safety.

To reduce the number of road accidents, which are on the rise in several countries, governments are promoting policies that would mandate and encourage customers to install ADAS components in vehicles. For instance, to increase vehicle safety, the Indian government has already made ABS a requirement for motorcycles. India is working to mandate Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB) in automotive by 2022–2023.

Growing Intelligent Transportation Systems

A suitable example of cutting-edge aftermarket technology which involves sharing data between the vehicle and humans is the safety services provided in connected cars. To increase vehicle efficiency, decrease fuel consumption and maintenance costs, improve security and safety measures and let the driver gain a better overall driving experience, safety is a combination of telecommunication and automotive technology.

Another feature in connected cars is the driver assistance system, which aids the driver in choosing which route to take to get to their destination. Additionally, it gives alerts about the availability of parking spaces and traffic jams. Intelligent transportation systems are made accessible by all connected automotive technologies and are intended to enhance the driving experience.

In June 2022, PATEO Corporation and Qualcomm Technologies, Inc. (Qualcomm) extended the relationship to provide products that support smart automobile connection, intelligent cockpits, service-oriented architecture (SOA) and multi-domain fusion based on central controllers.

Risk of Cyber Attacks

One of the main factors limiting the expansion of the connected cars market is vulnerability to cyber-attacks. Due to the huge quantity of data available in commercial computer networks, hackers have more opportunities to cause havoc in internet-linked cars and self-driving cars as the number of connected cars increases.

Vehicle performance data, location information and personal information are just a few data types connected cars collect and broadcast. Theft or unauthorized access to confidential data may arise from a cyber attack that breaches the vehicle's systems. Identity theft, concerns about privacy and potential misuse of personal data might result from it.

COVID-19 Impact Analysis

The COVID-19 pandemic significantly impacted the global connected cars market because of lockdowns and trade restrictions that caused supply chain disruptions and a global halt to car production. COVID-19 significantly moved new car sales, particularly in February 2020. For instance, new vehicle sales in China decreased by 92% in February.

Additionally, several automobile companies in a nation like India, including TVS and Mahindra, have halted production and sales due to the shutdown, impacting a wide range of industries. However, when limitations were eased, participants began concentrating on reducing these risks and advancements to encourage growth in the global connected cars market during the forecast period.

Russia- Ukraine War Impact

Lockdowns, limitations and transportation issues caused disruptions in the global supply chain. A growing number of automakers have chosen to stop doing business in Russia. All automakers discontinued sales in Russia, including Honda, Nissan, Toyota, Volkswagen, Lamborghini, Volvo, Jaguar Land Rover and Aston Martin.

The repercussions from Russia's invasion of Ukraine is reportedly causing disruptions to financial transactions and transportation lines. Organizations are preparing for a wide spectrum of raw material shortages. One of the major suppliers of key raw materials, including gas, crude oil, aluminum, wheat and palladium, is Russia. It is also anticipated to limit the growth of the global connected vehicles market.

AI Impact

AI has influenced the automotive industry in many ways, from self-driving cars to industrial robots in manufacturing facilities. Due to this, major industry giants like Mercedes-Benz, Toyota, Volkswagen, Tesla, Volvo, and Bosch rapidly implement AI technology to enhance the customer experience.

As a result, automotive manufacturers are rapidly adopting innovative AI-based software development solutions to achieve the vision of automated and connected vehicles. As a result, the automotive industry currently relies on AI for related vehicle design and production, making it apparent that autonomous, electric and hybrid vehicles are the future of the automotive industry.

Segment Analysis

The Global Connected Cars Market is segmented based on type, network, services, hardware and region.

Rising Demand for 5G Technology drives Cellular Network Growth.

The cellular network is expected to grow at the highest CAGR during the forecast period 2023-2030. Cellular network benefits, such as the reduction in the requirement for roadside infrastructure and the availability of highly reliable, real-time communication even in places with heavy traffic, encourage the segment's expansion. Additionally, it is expected that the development of 5G cellular technology and the growing deployment of 5G in developed countries will boost demand for cellular networks.

The 5G network's high speed and real-time cloud computing are expected to provide connected vehicles with a fast and secure connection. Multiple organizations are promoting the development of 5G integrated technologies for connected cars. For instance, in April 2022, Korea Electric Technology Institute (KETI) and Obigo Inc. (Obigo) collaboratively developed 5G-NR-V2X technologies for connected and autonomous driving automobiles.

Geographical Analysis

Growing Advancement of Automotive Technology in Asia-Pacific

Asia-Pacific is anticipated to grow significantly in the connected cars market during the forecast period. China has the fastest economic growth in the region due to the rapid growth of the automotive sector. In Asia-Pacific, consumption trends for connected cars are changing along with rising affordability.

With recent IoT and telematics developments that have increased connectivity, responses and communications, India is a growing technological hub that provides drivers, passengers and commuters with infotainment, security, safety and advanced vehicle management. Despite the pandemic, China remains one of the world's top vehicle producers, creating an excellent opportunity for connected technology to establish its position in the Chinese automotive industry.

With the launch of the new level 2 and level 3 ADAS capabilities, major automakers in China are upgrading their product portfolio. For instance, the new Chitu compact SUV from the HAVAL brand of Great Wall Motor Co. Ltd. launched in May 2021.

It is powered by a 1.5L turbocharged engine with a 7-speed wet dual-clutch gearbox and has a maximum power output of 135kW and a peak torque of 275Nm. The car also has a Level 2 ADAS system, with different features depending on the version.

Competitive Landscape

The major global players include LUXOFT, Continental AG, Qualcomm Technologies, Inc., Robert Bosch GmbH, Sierra Wireless, Tesla, Audi AG, BMW Group, Daimler AG and Ford Motor Company.

Why Purchase the Report?
• To visualize the Global Connected Cars Market segmentation based on type, network, services, hardware and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous connected cars market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Connected Cars Market Report Would Provide Approximately 69 Tables, 75 Figures And 201 Pages.

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