Car as a Connected Living Ecosystem - Global Forecast to 2035
The global car as a connected living market is expected to grow from $8 in 2023 billion to ~$1.5 trillion by 2035 at a CAGR of 54.5%.
Connected cars have evolved considerably over the last decade from telematics systems to in-car connectivity with access to third party apps. However, the idea that customers are adopting connected vehicles only for in-car convenience is gradually expanding to offer a wide range of support services ranging from safety, home, and workplace, to health. While the concepts are enticing, given the nascency of the market, there are several unanswered questions in terms of service offerings, packages and pricing, customer perception, and industry developments. The growing convenience of market trends such as electrification and autonomous mobility add layers of complexity to this landscape.
“In-car connectivity will have the largest share of the digital connected living solutions”
In-car connectivity features are expected to constitute ~90% of the total market; with a total market potential of ~$500 billion by 2035. This is evident from the connected car strategies of leading Chinese OEMs such as BYD, Xpeng, Nio, and Leap Motors that are aggressively focused on international expansion, especially Europe. Leap Motors has revealed its future vehicles will have over 500 connectivity features.
“Connected aftermarket will be a critical part of connected living solutions to ensure optimal vehicle health and increased vehicle relevance over vehicle lifetime ”
Traditionally, the primary relationship between OEMs and its customers ended at the point of sales. This dynamic has started to evolve now. OEMs are increasingly making their presence felt in the aftermarket service space such as digital and connected repair and maintenance services, metaverse based real time fault identification and repair services, digital service lanes, online auto parts and used car marketplaces and connected car insurance features. Consequently, OEMs are connected with their customers at every point in the vehicle journey; helping customers optimally navigate vehicle maintenance.
“Connected energy offers strong business case for OEMs.”
Through connected EVs, OEMs are making it very easy for customers to manage their energy needs. Digital charging management has become very common and offered by almost OEMs such as Mercedes, BMW, Ford, Tesla, Stellantis, and Nio amongst others, offering service such as charging status monitoring, charging scheduling, charging and battery swapping station locator, and payment integration. Connected EVs are not just limited to offering these digital charging services – the wider ecosystem of charging infrastructure offers new revenue streams for OEMs. OEMs such as Tesla, GM, and Hyundai offer services such as renewable energy generation for vehicles and homes, energy storage , and vehicle to grid (V2G) services.
List of Companies:
Mercedez Benz (Germany)
BMW (Germany)
VW (Germany)
Stellantis (Netherlands)
Hyundai (South Korea)
Toyota (Japan)
GM (USA)
Ford (USA)
Nio (China)
Xpeng (China)
Research Coverage:
The report covers the global car as a connected living ecosystem market for connected living solutions in terms of market trends, OEM developments, market potential, and future outlook. It also covers the competitive landscape of the major players in the connected living ecosystem.
Key Benefits of the Report
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the connected living solutions.
This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
The report provides insights on the following pointers:
Analysis of key drivers (advanced technologies, customer propensity to adopt), restraints (cost of technology development), challenges (undertaking strategic partnerships), and opportunities (first mover advantage).
Product Development/Innovation: Detailed insights on upcoming technologies, research & development activities, and new product & service launches in the connected living space.
Market Development: Comprehensive information about lucrative markets - the report analyses the future of connected living solutions through the car.
Market Diversification: Exhaustive information about new products & services, recent developments, and investments in the connected living space.
Competitive Assessment: Competitor benchmarking to understand ket industry connected living service offerings.
- MEGA TREND – 5G TO 6G WILL BE A CONVERGENCE OF CELLULAR AND SATELLITE NETWORKS, WHICH WILL HAVE SEVERAL IMPLICATIONS FOR INDUSTRIAL B2B SECTORS IN FUTURE
- WHAT IS CONNECTED LIVING?
- THE CONNECTED LIVING ECOSYSTEM IN A CAR CONTEXT
- OFFERING BEYOND JUST MOBILITY: A DAY IN CAROLINE’S LIFE MADE EASIER
- CAR AS A CONNECTED LIVING ECOSYSTEM – SERVICE LANDSCAPE OVERVIEW
- SOCIAL MEDIA AND DIGITAL APPS ARE INCREASINGLY PLAYING A KEY ROLE IN CUSTOMERS DISCOVERING AND PURCHASING NEW VEHICLES WITH BETTER FEATURES AND TECHNOLOGIES
- FUTURE OF VEHICLE OWNERSHIP
- FUTURE CARS WILL HAVE OVER 300 FEATURES, OVER 100 OF WHICH WILL ENABLE CONNECTED LIVING SOLUTIONS
- CONNECTED CARS WILL BE ABLE TO SERVICE ALL ASPECTS OF CONNECTED LIVING
- ON-ROUTE MOBILITY SERVICES THAT CAN BE BUNDLED IN A MARKETPLACE OFFERING
- INDUSTRY BEST PRACTICE: THE RANGE OF CONNECTIVITY FEATURES OFFERED BY CHINESE OEMS IS CURRENTLY UNPARALLELED
- CONNECTED CARS IN THE METAVERSE FUTURE WILL ENABLE UNMATCHED CUSTOMER EXPERIENCE AND SERVICE CONVENIENCE
- INDUSTRY BEST PRACTICE: OEMS ARE TAKING THE DIGITAL CUSTOMER EXPERIENCE TO THE NEXT LEVEL IN TERMS OF DEVELOPING CARS AS EXPERIENCE DEVICES
- ALONG WITH IN-CAR EXPERIENCE, CARS ARE ALSO BEGINNING TO OFFER CONNECTED HOME SERVICES
- OEMS ARE WORKING TOWARD OFFERING CONNECTED WORK TO TRANSFORM THE CAR INTO A DIGITAL WORK ASSISTANT
- IN-CAR CONNECTED HEALTH HAS THE POTENTIAL TO TRANSFORM FROM AN ATTENTION MONITORING SYSTEM TO A MOBILE HEALTHCARE MONITORING & TREATMENT DEVICE
- CONNECTED CARS IN THE FUTURE COULD HOST MORE THAN 300 SENSORS OUT OF WHICH 10% WOULD BE FOR HEALTHCARE MONITORING
- INDUSTRY BEST PRACTICE: OEMS ARE TAKING CAUTIOUS STEPS BEYOND OFFERING IN-CAR DRIVER ATTENTION MONITORING SYSTEMS
- CONNECTED CARS CAN DOUBLE UP AS PERSONAL ASSISTANTS
- CONNECTED CARS WILL BE THE FORBEARERS OF CONNECTED CITY TECHNOLOGY AND REPRESENT STEADY REVENUE STREAMS FOR OEMS
- CONNECTED ENERGY SOLUTIONS & INTEGRATED ENERGY MANAGEMENT THROUGH THE CONNECTED CAR PLATFORM ARE HELPING CUSTOMERS SEAMLESSLY MANAGE THEIR ENERGY NEEDS
- INDUSTRY BEST PRACTICE: OEMS ARE DEVELOPING ENERGY MANAGEMENT SYSTEMS AND NEW REVENUE STREAMS TO ENHANCE THEIR PRESENCE IN THE ENERGY VALUE CHAIN
- INDUSTRY BEST PRACTICE: EMERGING POSSIBILITIES FOR SINGLE STAKEHOLDER TO BECOME END-TO-END ENERGY SERVICE PROVIDER
- CONNECTED AFTERMARKET TO PROVIDE SUSTAINABLE REVENUE STREAMS FOR OEMS
- DIGITAL AFTERMARKET SERVICES WILL BE CENTRAL IN EXTENDING THE CUSTOMER LIFETIME VALUE
- INDUSTRY BEST PRACTICE: OEMS OWNING THE AFTERMARKET THROUGH A CONNECTED PLATFORM
- INDUSTRY BEST PRACTICE – NIO’S EXPANDING AFTERMARKET ECOSYSTEM: THE VEHICLE IS JUST THE STARTING POINT; THE CRUX OF NIO’S STRATEGY LIES IN ITS SERVICES
- CONNECTED CARS WILL ALSO BECOME AN ENABLER FOR CONNECTED MOBILITY SERVICES
- CONNECTED SECOND LIFE MANAGEMENT SERVICES OFFER CUSTOMERS A SEAMLESS TRANSITION TO THEIR NEXT VEHICLE
- CAR AS A CONNECTED LIVING ECOSYSTEM – BUSINESS & FINANCIAL CASE
- CONNECTED LIVING FEATURE SUBSCRIPTIONS CAN REDUCE UPFRONT VEHICLE COST
- EMERGING BUSINESS MODELS –VW, TESLA, KIA, GM, AND STELLANTIS OFFER CONNECTIVITY FEATURES AS COMPREHENSIVELY INTEGRATED PACKAGES WHILE MERCEDES-BENZ AND BMW OFFER FEATURE-SPECIFIC SERVICE PACKAGES
- CONNECTED LIVING ECOSYSTEM – MARKET POTENTIAL FROM DIGITAL CONNECTED LIVING SERVICES
- THE PERIOD UP TO 2030 WILL BE CRITICAL AS ADVANCED SERVICES ARE LAUNCHED AND THE CONNECTED LIVING MARKET MOVES TOWARDS MATURITY
- OEMS SHOULD FOCUS ON CONNECTED LIVING SEGMENTS WITH EMERGING TECHNOLOGIES THAT OFFER HIGH VALUE TO CUSTOMERS
- CONNECTED LIVING ECOSYSTEM – MARKET POTENTIAL FROM DIGITAL CONNECTED LIVING ECOSYSTEM SERVICES
- CONNECTED EVS OFFER ADDITIONAL FIXED REVENUE THROUGH ENERGY MANAGEMENT SYSTEMS
- CONNECTED CARS OFFER INVALUABLE DATA TO STREAMLINE SERVICES SUCH AS INSURANCE AND AFTERMARKET WARRANTIES IN THE WIDER AUTOMOTIVE ECOSYSTEM
- CUSTOMERS ARE NOT THE SOLE REVENUE SOURCES FOR OEMS; NEW DATA MONETIZATION OPPORTUNITIES EMERGE FROM CONNECTED CARS
- CAR AS A CONNECTED LIVING ECOSYSTEM – OEM COMPARATIVE ANALYSIS
- OEMS ARE AGGRESSIVELY WORKING TOWARD DEVELOPING THE ULTIMATE SEAMLESS CUSTOMER PLATFORM
- CAR AS A CONNECTED LIVING ECOSYSTEM – CUSTOMER ANALYSIS
- CUSTOMER ADOPTION OF ONE-STOP PLATFORMS FOR ALL CAR-CENTRIC NEEDS TO MIMIC BANKING AND GROCERY MARKETS
- CAR AS A CONNECTED LIVING ECOSYSTEM – DIGITAL & TECH STACK REQUIREMENTS
- FOR UPCOMING PROGRAMS, MOST OEMS ARE LOOKING TO OWN THE DIGITAL COCKPIT MIDDLEWARE & UI WITH SOME FOCUSING ON UTILIZING OPEN-SOURCE SOFTWARE INITIATIVES
- CAR AS A CONNECTED LIVING ECOSYSTEM – RECOMMENDATIONS
- KEY CONCLUSIONS AND RECOMMENDATIONS
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