North America Connected Car Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
Currently, North America Connected Car Market is valued at USD 30.05 billion and is expected to reach USD 114.40 billion in the next five years, registering a CAGR of 25% during the forecast period (2022-2027).
As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the long term, increasing investments in R&D by major industry players, rising Internet penetration, availability of 5G, falling data costs, and growing preference of customers for connectivity features over mechanical specifications of vehicles and a rise in sales of electric and autonomous vehicles are creating demand in the automotive and transportation industry with a surge in sales of connected vehicles in North American market.
Key players in the market are expanding their presence in digital mobility to cater to the increased demand for connected cars. For instance, in October, 2022: Ford Motor Co. opened Ford Atlanta Research and Innovation Center (FARIC) in Atlanta in United States, to accelerate the digital transfofmation in the company. The R&D Centre will focus on developing and testing new technologies for connected vehicles, application of artificial intelligence in obility and identifying new partnerships for university research in connected mobility.
United States is anticipated to be the dominant market for connected cars in the region due to the large prescence of automotive OEMs, high levels of technology awareness amongst the general car buyers, preference for infotainment and telematics in vehiclles, wideperad adoption of 4G/5G and growing sales of electric, connected and autonomous vehicles in the country.
Key Market TrendsGrowing Adoption of 5G and Telematics to Produce Growth in the MarketThe increasing usage of telematics is inducing growth in the market. Telematics is increasingly favored by fleet and vehicle owners to monitor their vehicles remotely for the purposes of safety, efficiency, predictive maintenance, and driver behavior. the various partnerships between vehicle OEMs and navigation service providers to offer in-built telematics in the vehicles are further expanding the market in the region.
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The growing adoption of 5G for in-vehicle connectivity is also predicted to drive the market in the coming years since latency for 5G is negligible compared to 4G/LTE which will significantly bump up the speed for data downloading and sharing inside the vehicles and the antcipated fall in the data costs of 5G as telecom majors will considerably invest in expanding 5G coverage and rolling out of cost effective 5G services to consumers. For instance,
United States will likely emerge as the largest market for connected cars in North America, followed by Canada and Mexico.
According to some estimates, in United States, 91% of new passengers sold in 2021 vehicles featured some in-vehicle connectivity which translates into 13 million vehicles. The growing sales of connected vehicles in United States can be attributed to various factors like growing sales of electric and autonomous vehicles, the preference of car buyers for connectivity features over mechanical specifications of the vehicles, growing internet penetration, falling data costs, high levels of technological awareness and the introduction of 5G.
Electric and autonomous vehicles rely mainly on sophisticated chips, sensors, and advanced software for their operation, requiring in-vehicle connectivity. Thus increasing sales of electric and autonomous vehicles are contributing significantly to the growth of the North American Connected Car Market.
Canada is also witnessing a very healthy rise in the sales of connected vehicles. The reasons are growing internet penetration, reduced data costs, and rising usage of smart devices like smartphones.
Key players are engaging in partnerships and launching new products to secure their market position and stay ahead of the market curve. For instance
The North America Connected Car market is moderately consolidated. The market is characterized by considerably large global players and some local players who have secured long-term supply contracts with major infrastructure companies. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.
Some major players dominating the global market are General Motors, Ford Motor Co., Toyota, Motor Corp., Stellantis NV, and Tesla Inc. Key players are engaging in mergers and acquisitions and launching new products to secure their market position to stay ahead of the market curve. For Instance,
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