Connected Cars Market Forecasts to 2028 – Global Analysis By Connectivity Solution (Tethered, Integrated, Embedded), Technology (5G, 3G, 4G/LTE), Service (Mobility Management, Driver Assistance, Vehicle Management, Safety & Security, Entertainment), Network (Cellular, Dedicated Short Range Communication (DSRC)), Network, Vehicle Type, Hardware, Connectivity Type, Application, End User and Geography"
According to Stratistics MRC, the Global Connected Cars Market is accounted for $28.55 billion in 2022 and is expected to reach $89.62 billion by 2028 growing at a CAGR of 21% during the forecast period. The term ""connected cars"" describes vehicles that have internet connectivity and cutting-edge communication systems to enable the exchange of information across multiple communication channels. They are made to provide better vehicle performance, increased user convenience, and effective interaction between the transportation system and its surroundings in order to reduce traffic accidents and provide reminders on parking spot availability.
According to the 5G Automotive Associations, a seamless 5G network can help prevent more than 60% of traffic accidents.
Market Dynamics:
Driver:
Intelligent Transportation System
The data interchange between the vehicle and the driver is one of the many innovative aftermarket technologies that connected automobiles offer as part of their safety features. To increase vehicle economy, save fuel and maintenance costs, strengthen security and safety measures, and improve the entire driving experience for the driver, safety blends telecommunications and automobile technology. Another element of connected cars that assists the driver in choosing the best route to their destination is the driver assistance system. Additionally, it delivers notifications on parking availability and traffic congestion. With the help of these connected automobile features, intelligent transportation systems may improve the driving experience.
Restraint:
Cybersecurity
Despite notable improvements in connected automotive technology, cybersecurity remains a major worry. Bluetooth, hardware software, and mobile applications are all vulnerable parts of linked autos. This can make it difficult for the market to expand. Numerous circumstances have been made uncomfortable by cybersecurity. The Tesla S and Nissan Leaf are two instances of how susceptible linked cars are to hacking.
Opportunity:
Emergence of new technologies like 5G and AI
For all connected automobiles to provide a better user experience, wireless connectivity is required. Many companies in the telecommunications industry are working on 5G in order to increase the efficiency and security of connected automobiles. The worldwide 5G automotive associations claim that 68% of accidents may be avoided by the use of future 5G technology. An example is the agreement between the EU and South Korea to work together on 5G development for regional 5G projects. With the increased usage of sensors and other data technologies, Al will be crucial to making sense of everything. Al is now used in certain cars for Level 3 autonomous driving, although for the industry to achieve Level 5, both the infrastructure and the automobiles need to undergo considerable upgrades.
Threat:
Lack of infrastructure for the proper functioning of connected cars
Due of the inadequate network coverage on roads, vehicles do not belong to the cloud or to one another. In emerging countries like Mexico, Brazil, and India, as opposed to developed countries, the expansion of IT infrastructure on roads is slower. Currently, only urban and suburban regions have access to 3G and 4G LTE communication networks. In semi-urban and rural areas, there are many third-party logistics companies operating, but connection is a challenge. As a result, the lack of IT and communication infrastructure in developing regions and the gradual implementation of government rules may hinder the growth of the connected automotive industry in these countries.
Covid-19 Impact
The future of new sales is uncertain in the short term as long as lockdowns continue to happen at random, which will prevent consumers from driving their cars. Sales will drop dramatically as a result of the lack of semiconductors, which has already forced many production halts for major producers. The need for private transportation does, however, continue to grow despite the restricted cash supply, which has significantly increased the number of transactions made of previously owned goods. This will help counterbalance some of the reduced sales that were seen. Companies have the chance to focus on improving the connectivity between their varied services and products at all points in the automotive supply chain.
The 5G segment is expected to be the largest during the forecast period
The 5G segment is estimated to have a lucrative growth. Cars can connect to infrastructure & one another more quickly and reliably using 5G networks since they have lower latency and faster throughput than 4G networks. This will allow for more capabilities, such improved collision avoidance and real-time traffic updates. Due to 5G networks' higher capacity than 4G networks, more cars may connect at once, improving traffic flow and reducing congestion. New services like Vehicle-to-Everything (V2X) connection, which enables automobiles to communicate with other cars, pedestrians, and other infrastructure like traffic lights and weather sensors, are also made feasible by 5G. As a result, vehicles are able to be more cognizant of their surroundings and make safer and more efficient driving decisions.
The Original Equipment Manufacturer (OEM) segment is expected to have the highest CAGR during the forecast period
The Original Equipment Manufacturer (OEM) segment is anticipated to witness the fastest CAGR growth during the forecast period. Rising technological developments such as unrestricted connection, cybersecurity, and the development of autonomous cars connected with highly secure software are predicted to boost OEMs' dominance during the projection period. The establishment of alliances with significant companies to provide high-quality and reasonably priced components is another element driving the rise of the OEM market.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period. A large number of automakers with operations in the Asia-Pacific area have created linked services, which will ultimately aid in the growth of the connected car industry in the region. Due to the cooperation of well-known connected vehicle companies and the rollout of 5G networks for connected cars, the market for linked cars is expected to grow tremendously. The development of advanced wireless platforms by wireless service providers for connected vehicles is another initiative that is expected to aid in the growth of the Asia-Pacific connected car industry.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period, owing to growth of the connected vehicle network. Important telecommunications firms are also investing in the development of linked car capabilities. The expansion of connected car services in the region has been made possible by an uptick in North American auto production and sales. The regional market has grown as a result of new technologies produced by connected service providers to provide better and more efficient service.
Key players in the market
Some of the key players profiled in the Connected Cars Market include Continental AG, Toyota Motor Corporation, Valeo, DENSO Corporation, Harman International Industries, Inc., Robert Bosch GmbH, Tesla, Panasonic Holdings Corporation, TomTom International, Kia Motors Corporation, Maruti Suzuki India Limited, Hyundai Motor Company, Nissan Motor Company and Qualcomm Technologies.
Key Developments:
In February 2022, HARMAN Savari MECWAVE is an Ultra-Low-Latency Edge-Based Computing Platform for Turn-Key Connectivity that was released. MECWAVE enables faster deployment of vehicle-to-everything (V2X) communications like hazard alerts and high-throughput networking experiences like interactive infotainment and video streaming. MECWAVE also gives mobile and wearable devices, as well as non-V2X compliant vehicles and equipment like motorbikes and scooters, the ability to communicate with one another over the internet.
In November 2021, Continental developed a technology solution for highly autonomous driving. It is made up of smart software that can independently perform complicated driving manoeuvres. Starting at Level 3, highly autonomous driving is feasible thanks to a ground-breaking software programme called the Next Generation Driving Planner. This suggests that a vehicle can operate in various driving situations without a driver. An important development in automotive intelligence may be seen in the software that Continental developed.
Connectivity Solutions Covered:
• Tethered
• Integrated
• Embedded
• Other Connectivity Solutions
Technologies Covered:
• 5G
• 3G
• 4G/LTE
• Other Technologies
Services Covered:
• Mobility Management
• Driver Assistance
• Vehicle Management
• Safety & Security
• Entertainment
• Other Services
Networks Covered:
• Cellular
• Dedicated Short Range Communication (DSRC)
• Other Networks
Vehicle Types Covered:
• Commercial Vehicle
• Passenger Cars
• Other Vehicle Types
Hardware Covered:
• Telematic Control Unit (TCU)
• Central Gateway (CGW)
• Sensors
• Electronic Control Unit (ECU)
• Head Unit
• Intelligent Antenna
• Other Hardwares
Connectivity Types Covered:
• V2Pedestrain
• V2Vehicle
• V2Infrastructure
• Other Connectivity Types
Applications Covered:
• Infotainment
• Telematics
• Navigation
• Other Applications
End Users Covered:
• Original Equipment Manufacturer (OEM)
• Aftermarket
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
- 1 Executive Summary
- 2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
- 3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Technology Analysis
- 3.7 Application Analysis
- 3.8 End User Analysis
- 3.9 Emerging Markets
- 3.10 Impact of Covid-19
- 4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
- 5 Global Connected Cars Market, By Connectivity Solution
- 5.1 Introduction
- 5.2 Tethered
- 5.3 Integrated
- 5.4 Embedded
- 5.5 Other Connectivity Solutions
- 6 Global Connected Cars Market, By Technology
- 6.1 Introduction
- 6.2 5G
- 6.3 3G
- 6.4 4G/LTE
- 6.5 Other Technologies
- 7 Global Connected Cars Market, By Service
- 7.1 Introduction
- 7.2 Mobility Management
- 7.3 Driver Assistance
- 7.4 Vehicle Management
- 7.5 Safety & Security
- 7.6 Entertainment
- 7.7 Other Services
- 8 Global Connected Cars Market, By Network
- 8.1 Introduction
- 8.2 Cellular
- 8.3 Dedicated Short Range Communication (DSRC)
- 8.4 Other Networks
- 9 Global Connected Cars Market, By Vehicle Type
- 9.1 Introduction
- 9.2 Commercial Vehicle
- 9.3 Passenger Cars
- 9.4 Other Vehicle Types
- 10 Global Connected Cars Market, By Hardware
- 10.1 Introduction
- 10.2 Telematic Control Unit (TCU)
- 10.3 Central Gateway (CGW)
- 10.4 Sensors
- 10.5 Electronic Control Unit (ECU)
- 10.6 Head Unit
- 10.7 Intelligent Antenna
- 10.8 Other Hardwares
- 11 Global Connected Cars Market, By Connectivity Type
- 11.1 Introduction
- 11.2 V2Pedestrain
- 11.3 V2Vehicle
- 11.4 V2Infrastructure
- 11.5 Other Connectivity Types
- 12 Global Connected Cars Market, By Application
- 12.1 Introduction
- 12.2 Infotainment
- 12.3 Telematics
- 12.4 Navigation
- 12.5 Other Applications
- 13 Global Connected Cars Market, By End User
- 13.1 Introduction
- 13.2 Original Equipment Manufacturer (OEM)
- 13.3 Aftermarket
- 14 Global Connected Cars Market, By Geography
- 14.1 Introduction
- 14.2 North America
- 14.2.1 US
- 14.2.2 Canada
- 14.2.3 Mexico
- 14.3 Europe
- 14.3.1 Germany
- 14.3.2 UK
- 14.3.3 Italy
- 14.3.4 France
- 14.3.5 Spain
- 14.3.6 Rest of Europe
- 14.4 Asia Pacific
- 14.4.1 Japan
- 14.4.2 China
- 14.4.3 India
- 14.4.4 Australia
- 14.4.5 New Zealand
- 14.4.6 South Korea
- 14.4.7 Rest of Asia Pacific
- 14.5 South America
- 14.5.1 Argentina
- 14.5.2 Brazil
- 14.5.3 Chile
- 14.5.4 Rest of South America
- 14.6 Middle East & Africa
- 14.6.1 Saudi Arabia
- 14.6.2 UAE
- 14.6.3 Qatar
- 14.6.4 South Africa
- 14.6.5 Rest of Middle East & Africa
- 15 Key Developments
- 15.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 15.2 Acquisitions & Mergers
- 15.3 New Product Launch
- 15.4 Expansions
- 15.5 Other Key Strategies
- 16 Company Profiling
- 16.1 Continental AG
- 16.2 Toyota Motor Corporation
- 16.3 Valeo
- 16.4 DENSO Corporation
- 16.5 Harman International Industries, Inc.
- 16.6 Robert Bosch GmbH
- 16.7 Tesla
- 16.8 Panasonic Holdings Corporation
- 16.9 TomTom International
- 16.10 Kia Motors Corporation
- 16.11 Maruti Suzuki India Limited
- 16.12 Hyundai Motor Company
- 16.13 Nissan Motor Company
- 16.14 Qualcomm Technologies
- List of Tables
- Table 1 Global Connected Cars Market Outlook, By Region (2020-2028) ($MN)
- Table 2 Global Connected Cars Market Outlook, By Connectivity Solution (2020-2028) ($MN)
- Table 3 Global Connected Cars Market Outlook, By Tethered (2020-2028) ($MN)
- Table 4 Global Connected Cars Market Outlook, By Integrated (2020-2028) ($MN)
- Table 5 Global Connected Cars Market Outlook, By Embedded (2020-2028) ($MN)
- Table 6 Global Connected Cars Market Outlook, By Other Connectivity Solutions (2020-2028) ($MN)
- Table 7 Global Connected Cars Market Outlook, By Technology (2020-2028) ($MN)
- Table 8 Global Connected Cars Market Outlook, By 5G (2020-2028) ($MN)
- Table 9 Global Connected Cars Market Outlook, By 3G (2020-2028) ($MN)
- Table 10 Global Connected Cars Market Outlook, By 4G/LTE (2020-2028) ($MN)
- Table 11 Global Connected Cars Market Outlook, By Other Technologies (2020-2028) ($MN)
- Table 12 Global Connected Cars Market Outlook, By Service (2020-2028) ($MN)
- Table 13 Global Connected Cars Market Outlook, By Mobility Management (2020-2028) ($MN)
- Table 14 Global Connected Cars Market Outlook, By Driver Assistance (2020-2028) ($MN)
- Table 15 Global Connected Cars Market Outlook, By Vehicle Management (2020-2028) ($MN)
- Table 16 Global Connected Cars Market Outlook, By Safety & Security (2020-2028) ($MN)
- Table 17 Global Connected Cars Market Outlook, By Entertainment (2020-2028) ($MN)
- Table 18 Global Connected Cars Market Outlook, By Other Services (2020-2028) ($MN)
- Table 19 Global Connected Cars Market Outlook, By Network (2020-2028) ($MN)
- Table 20 Global Connected Cars Market Outlook, By Cellular (2020-2028) ($MN)
- Table 21 Global Connected Cars Market Outlook, By Dedicated Short Range Communication (DSRC) (2020-2028) ($MN)
- Table 22 Global Connected Cars Market Outlook, By Other Networks (2020-2028) ($MN)
- Table 23 Global Connected Cars Market Outlook, By Vehicle Type (2020-2028) ($MN)
- Table 24 Global Connected Cars Market Outlook, By Commercial Vehicle (2020-2028) ($MN)
- Table 25 Global Connected Cars Market Outlook, By Passenger Cars (2020-2028) ($MN)
- Table 26 Global Connected Cars Market Outlook, By Other Vehicle Types (2020-2028) ($MN)
- Table 27 Global Connected Cars Market Outlook, By Hardware (2020-2028) ($MN)
- Table 28 Global Connected Cars Market Outlook, By Telematic Control Unit (TCU) (2020-2028) ($MN)
- Table 29 Global Connected Cars Market Outlook, By Central Gateway (CGW) (2020-2028) ($MN)
- Table 30 Global Connected Cars Market Outlook, By Sensors (2020-2028) ($MN)
- Table 31 Global Connected Cars Market Outlook, By Electronic Control Unit (ECU) (2020-2028) ($MN)
- Table 32 Global Connected Cars Market Outlook, By Head Unit (2020-2028) ($MN)
- Table 33 Global Connected Cars Market Outlook, By Intelligent Antenna (2020-2028) ($MN)
- Table 34 Global Connected Cars Market Outlook, By Other Hardwares (2020-2028) ($MN)
- Table 35 Global Connected Cars Market Outlook, By Connectivity Type (2020-2028) ($MN)
- Table 36 Global Connected Cars Market Outlook, By V2Pedestrain (2020-2028) ($MN)
- Table 37 Global Connected Cars Market Outlook, By V2Vehicle (2020-2028) ($MN)
- Table 38 Global Connected Cars Market Outlook, By V2Infrastructure (2020-2028) ($MN)
- Table 39 Global Connected Cars Market Outlook, By Other Connectivity Types (2020-2028) ($MN)
- Table 40 Global Connected Cars Market Outlook, By Application (2020-2028) ($MN)
- Table 41 Global Connected Cars Market Outlook, By Infotainment (2020-2028) ($MN)
- Table 42 Global Connected Cars Market Outlook, By Telematics (2020-2028) ($MN)
- Table 43 Global Connected Cars Market Outlook, By Navigation (2020-2028) ($MN)
- Table 44 Global Connected Cars Market Outlook, By Other Applications (2020-2028) ($MN)
- Table 45 Global Connected Cars Market Outlook, By End User (2020-2028) ($MN)
- Table 46 Global Connected Cars Market Outlook, By Original Equipment Manufacturer (OEM) (2020-2028) ($MN)
- Table 47 Global Connected Cars Market Outlook, By Aftermarket (2020-2028) ($MN)
- Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
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