Europe Connected Cars Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Connected Cars Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The European connected cars market was valued at USD 9.1 billion in 2020, and it is expected to reach USD 23.2 billion by 2026, registering a CAGR of 16.9% during the forecast period.

The COVID-19 pandemic had a partial impact on the European-connected cars market. Although the stringent lockdown and social distancing norms affected the market indirectly by reducing the number of vehicle sales registered in 2020, the technical research that goes into implementing the system of the connected car was continued remotely. The pandemic has also forced people to prefer private transport, which is expected to raise car sales, worldwide, and consequently, the connected cars market.

Key Highlights

• There is a growing demand for connected car devices as they help monitor vehicles and drivers by exchanging critical information between nearby infrastructure and vehicles. Europe is home to many of the largest automotive technology manufacturers. Through smart platforms, IoT and telematics together have enhanced connectivity, communications, and responses that offer infotainment, safety, security, and increased vehicle management to drivers, passengers, and commuters.
• As of 2019, Europe has the second largest market share in the connected cars market. Europe is known for its extensive technological OEMs, which work in domains, such as in-car entertainment, navigation, and in-car connectivity (for example, through Bluetooth), which have evolved rapidly over the last decade.

Key Market TrendsGrowing Inclination Toward Autonomous Vehicles

The constantly growing inclination toward autonomous vehicles is seen as an aid to the connected cars market. With self-driving cars projected to be the future of the automobile industry, the connected cars market is in for huge growth potential later during the forecast period. Various steps taken by public bodies and governments of the European countries have been major factors to drive the market. For instance,

• In 2020, the European Union introduced the eCall mandate, which mandated certain levels of driver assistance systems to be installed on all new cars sold in the region from 2022. This decision is aimed to achieve partial autonomy by using data from various connected car technologies.
• The European Transport Safety Council (ETSC) has campaigned in favor of various connected and autonomous driving aid systems, like 5G network-connected vehicles, driverless vehicles, and ride-hailing facilities, which may be achieved by using connected cars.

With the constantly increasing usage of infotainment systems equipped in the car for different purposes, like navigation, entertainment, safety, vehicle management, and other systems that are onboard the vehicle, pointing toward the increasing connectivity of vehicles to exchange information with world-leading manufacturers, like Volkswagen Group (Porsche, Mercedes Benz, Audi, Lamborghini, and others), and BMW, established and headquartered out of Europe, the connected cars market in the region is likely to grow immensely over the forecast period.

Introduction of 5G Network and Increased Use of IoT Applications

The automotive industry is crucial to Europe's GDP. The automotive sector provides for 6.1% of total EU employment, and with the rising demands for high-performing cars, connected cars marker may provide lucrative opportunities for manufacturers in Europe.

Increased availability of 5G networks across the region is expected to make it easier for connected cars to manage vehicle speeds, along smart motor highways and the future data source for vehicle-to-vehicle communication that may aid collision avoidance systems. Several use cases of 5G network connectivity implemented in cars in Europe indicate the growing demand for the connected cars market.

Internet of Things (IoT) has seen an exponential increase in terms of usage in the region. The different aspects of vehicles needing IoT as a technology base for connected cars, autonomous driving, and vehicle security have been on the rise and are projected to increase in the coming years during the forecast period.

Competitive Landscape

The European connected cars market is moderately consolidated with existing players, such as Continental AG, Denso Corporation, Robert Bosch GmbH, Autoliv, Harman International, and Delphi Automotive LLP. As the demand for connected systems is growing in the region, the connected-car manufacturers are trying to have the edge over their competitors by making joint ventures and partnerships and launching new products with advanced technology. For instance, in 2020, all Volkswagen Golf and Polo are expected to be integrated with Microsoft's Azure cloud and work on the IoT Edge platform, the Automotive Cloud, which will provide drivers advanced connected vehicles.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Continental AG
Denso Corp
Robert Bosch GmbH
Autoliv Inc.
Harman International
Delphi Automotive LLP
Audi AG
BMW Group
Diamler AG
Verizon Communication

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