PUBLISHER: IMARC | PRODUCT CODE: 1520412
PUBLISHER: IMARC | PRODUCT CODE: 1520412
The global connected car market size reached US$ 84.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 267.2 Billion by 2032, exhibiting a growth rate (CAGR) of 13.3% during 2024-2032. Ongoing advancements in connectivity technologies, an emphasis on safety and security, evolving regulatory landscapes, changing consumer preferences towards personalized and convenient driving experiences, and the integration of diverse connectivity solutions and services are some of the key factors bolstering the market growth.
Market Growth and Size: The global connected car market is experiencing robust growth, driven by an increasing demand for advanced connectivity features in vehicles. The market size is expanding significantly as consumers prioritize safety, entertainment, and convenience services in their vehicles.
Major Market Drivers: Key drivers include technological advancements such as 4G/LTE, 3G, and 5G connectivity, safety regulations, changing consumer preferences, and a focus on driver assistance and vehicle management services. Besides this, the evolving regulatory landscape, particularly in regions like Europe and North America, plays a crucial role in shaping market dynamics.
Technological Advancements: Continuous technological advancements, especially in connectivity technologies like 5G, are propelling the connected car market forward. These advancements facilitate real-time data exchange, over-the-air updates, and the integration of advanced driver assistance systems (ADAS), contributing to a safer and more connected driving experience.
Industry Applications: Connected car technologies find applications in diverse industry segments, including safety services, entertainment, vehicle management, and mobility management. These applications cater to both original equipment manufacturers (OEMs) and the aftermarket, addressing a wide range of consumer needs and preferences.
Key Market Trends: Key trends include the integration of entertainment services, smart mobility solutions, and embedded connectivity solutions in vehicles. Moreover, the market is also witnessing collaboration between traditional automotive manufacturers and technology companies, emphasizing the importance of partnerships in driving innovation.
Geographical Trends: Geographically, North America leads in the adoption of connected cars due to a tech-savvy consumer base and stringent safety regulations. Asia Pacific is rapidly growing, driven by urbanization and increasing disposable income. Europe benefits from supportive regulatory frameworks, while Latin America and the Middle East witness rising demand driven by infrastructure improvements.
Competitive Landscape: The competitive landscape is characterized by intense rivalry among established automotive manufacturers, tech giants, and telecommunications companies. Concurrent with this, startups specializing in specific connected car solutions contribute to innovation, resulting in a convergence of traditional and disruptive players.
Challenges and Opportunities: Challenges include addressing cybersecurity concerns, ensuring regulatory compliance, and meeting diverse consumer demands. Opportunities lie in continued technological innovation, strategic partnerships, and leveraging connectivity to create new and personalized in-car experiences. The market's evolution also presents opportunities for startups and companies focusing on niche solutions.
Significant advancements in connectivity technologies
The continuous evolution of connectivity technologies represents one of the key factors influencing the global connected car market. The shift from traditional standalone vehicles to interconnected smart cars is fueled by the integration of high-speed internet, 4G and 5G networks, and advanced communication protocols. These technologies enable seamless communication between vehicles and the broader transportation ecosystem, facilitating real-time data exchange. Connected cars leverage these advancements to provide a range of features, including real-time traffic updates, remote diagnostics, over-the-air software updates, and enhanced navigation systems. As these technologies mature, the connected car market is poised to expand further, offering a more immersive and safer driving experience.
Rising emphasis on safety and security
Safety and security considerations are key factors strengthening the global connected car market. The integration of ADAS and vehicle-to-everything (V2X) communication plays a pivotal role in enhancing road safety. Connected cars leverage sensors, cameras, and communication modules to collect and transmit data about the vehicle's surroundings, potential hazards, and traffic conditions. This information is not only utilized by the vehicle itself to make informed decisions but is also shared with other connected vehicles and infrastructure, creating a collaborative safety ecosystem. Additionally, connected cars often feature robust cybersecurity measures to protect against potential cyber threats, ensuring the integrity and confidentiality of the data exchanged between vehicles and external systems.
Evolving regulatory landscape
Governments and regulatory bodies worldwide are actively contributing to the growth of the connected car market through the formulation and implementation of supportive policies. In line with this, the introduction of stringent regulations mandating the inclusion of certain safety features and connectivity capabilities in new vehicles, such as the European Union's eCall regulation requiring all new cars to be equipped with an emergency call system, is bolstering the market growth. Such regulations drive the adoption of connected car technologies and create a standardized framework that fosters interoperability and compatibility among different vehicles and infrastructure components, providing an impetus to the market growth.
Changing consumer preferences and expectations
The rising consumer demand for a more connected, personalized, and convenient driving experience is acting as another significant growth-inducing factor. Connected cars cater to these changing preferences by offering features such as in-car infotainment systems, voice-controlled assistants, and integration with smartphones and smart home devices. The ability to remotely control and monitor various aspects of the vehicle, from climate settings to vehicle diagnostics, resonates well with modern consumers seeking enhanced convenience and control, aiding in market expansion. Furthermore, the concept of connected mobility, which includes services like ride-sharing, predictive maintenance, and automated parking, is gaining traction as consumers become more tech-savvy and accustomed to the conveniences offered by connectivity, which is propelling the market forward.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on technology, connectivity solutions, services, and end market.
3G
4G/LTE
5G
4G/LTE accounts for the majority of the market share
The report has provided a detailed breakup and analysis of the market based on the technology. This includes 3G, 4G/LTE, and 5G. According to the report, 4G/LTE represented the largest segment.
Integrated
Embedded
Tethered
Integrated holds the largest share in the industry
A detailed breakup and analysis of the market based on the connectivity solution have also been provided in the report. This includes integrated, embedded, and tethered. According to the report, integrated accounted for the largest market share.
Driver Assistance
Safety
Entertainment
Vehicle Management
Mobility Management
Others
Driver assistance represents the leading market segment
The report has provided a detailed breakup and analysis of the market based on the service. This includes driver assistance, safety, entertainment, vehicle management, mobility management, and others. According to the report, driver assistance represented the largest segment.
Original Equipment Manufacturer (OEMs)
Aftermarket
Original equipment manufacturer (OEMs) exhibits a clear dominance in the market
A detailed breakup and analysis of the market based on the end market have also been provided in the report. This includes original equipment manufacturer (OEMs) and aftermarket. According to the report, original equipment manufacturer (OEMs) accounted for the largest market share.
North America
United States
Canada
Asia-Pacific
China
Japan
India
South Korea
Australia
Indonesia
Others
Europe
Germany
France
United Kingdom
Italy
Spain
Russia
Others
Latin America
Brazil
Mexico
Others
Middle East and Africa
North America leads the market, accounting for the largest connected car market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
AT&T Inc.
Audi AG (Volkswagen AG)
Bayerische Motoren Werke AG
Continental AG
Ford Motor Company
Mercedes-Benz Group AG
Qualcomm Incorporated
Robert Bosch GmbH
Samsung Electronics Co. Ltd.
Sierra Wireless
Tesla Inc.
TomTom N.V.
Valeo
Verizon Communications Inc.
Vodafone Group Plc