Connected Car Market is predicted to achieve USD 166.0 Billion by the end of the year 2027, at a CAGR of 25.2% from the forecast period of 2020 to 2027
Globally, the size of connected car market is expected to surpass USD 166.0 billion by 2027 at a CAGR of 25.2% during the forecast period driven by the increased demand for modified and advanced cars that enhances user safety, comfort, and convenience.
The connected car facilitates connectivity on wheels, offering comfort, convenience, performance, safety, security, and robust network technology. This enables the driver to connect with the online platforms, facilitating real-time communication. The rise in consumer demand for connectivity solutions, surge in need for constant connectivity, increase in dependency on the technology, and an upsurge in the tech-savvy population are the key factors that contribute to the growth of the global connected cars market. Over time, vehicle manufacturers and service providers have developed various connectivity solutions, like the machine-to-machine connectivity platform.
This type of machine-to-machine feature in a car enables the interconnectivity between the two connected vehicles. The vehicle is equipped with numerous sensors and processors that provide accurate and real-time information to the driver. This in turn fuels the adoption of connected cars across the globe, thus supplementing the market's growth. All the factors like technological advancements, the rise in production of vehicles, and the increase in demand for the luxury and comfort in cars are expected to supplement the market's growth.
The ongoing pandemic has affected almost all sectors, and the Connected Car Market was not deprived of it. The supply of raw materials and components has been disrupted in the supply chain due to the lockdown. As a result, vehicles' global production has declined, and the Market also experienced a halt. In global passenger car production, the majority market share was held by countries like Japan, China, and India. It had undergone a massive decline of 15%, 17%, and 14%, respectively, in 2020 compared to the previous year.
The producers are planning on leveraging the increased demands for connected car services using the latest technology to enhance revenue generation. COVID19 slowed down the market's economic growth, but the key players have now taken ideal measures to revive it for better profitable outcomes. Thus, connected cars have seen tremendous growth with remarkable CAGR in the Connected Car Market Forecast period.
The key market driver for the Market is growing ADAS features in cars to ensure enhanced safety levels. Moreover, the increased demand for modified and advanced cars enhances user safety, comfort, and convenience.
In the present scenario, the COVID breakdown has lost its weightage over the Connected Car Market production pace; the key players are making efforts to develop connected cars to drive the market growth. The connected car service is meant to offer diverse applications to commercial firms. Therefore, the market is growing, and opportunities are being evolved for better work efficiency.
The growth opportunities of the Connected Car Market are increasing at higher rates. It became possible because of the emergence of various technologies likes 5G and AI. These technological services are highly essential within the commercial industries to develop their sales.
Therefore, the connected car industries have applied various strategies to enhance industry productivity.
The major restraints of the Connected Car Market can be the lack of infrastructure for connected cars functioning. The limited network connectivity might fail the whole structure of the connectivity services. The key players attend to the primary concerns to find ideal remedies to deal with these restraints.
The connected cars need to be improved to ensure that the commercial industries can enhance the output. Thus, the Connected Car Market will boom in the current forecast years as the key players find suitable ways to overcome these restraints.
Nowadays, 5G demands are more in the connected cars market, so security systems become the market challenge. Tackling cybersecurity can be a big challenge for global market trends. These challenges need to be eradicated to ensure higher productivity in terms of sales and revenue.
The key players are enhancing the efficiency of connected cars within the market to improve sales and opportunities.
The Connected Car Market’s growth analysis is recorded to be at CAGR of 25.2%, which is truly commendable. Thus, the market revenue prediction for the current forecast years is relatively higher than the previous period.
The key players of different regions are putting collective effort to ensure that the Market thrives across all the areas in terms of increased demands and sales.
The growth of the Connected Car Market depends on the market value size. The proper understanding of the market value can lead the connected car services in the global market competition.
Moreover, many key players are involved in developing connected car sales in all countries' regions. The key players have taken up new strategies to increase the global market's market value.
Global Connected Car Market is classified into verities of technology based on the segmental technology classifications. The technology segment includes WiFi, Bluetooth, 2G, 3G, and LTE.
Every technology of the connected car is used for diverse applications based on the industries and customers' requirements. These industries require having a proper understanding of the use they want to store for running their connected service at times of need, based on which the technology can be included.
The global car market is classified into tethered, integrated, and embedded based on connectivity segmentation. Connected cars are preferred based upon their connectivity services and capacity that is also a differentiating factor.
Nowadays, most industries seek improved connectivity services and capacity for their work operations, as the selected connected cars are readily available for the customers to pick at the same time.
According to the components segmentation, the Connected Car Market trends are classified into different components. These connected car components are Cellular, Sensors, Processors, and wireless modules.
These components are collectively explaining the benefit of the technology or product. With the addition of components, the Global Connected Car Market will eventually increase to impeccable heights.
The Connected Car Market Outlook is classified into verities of services based on the segmental services classifications. The services segment includes Autonomous driving and Vehicle management, OEM Services, Safety, Entertainment, and Well-Being.
The report explains that the global market has verities of services for their customers to offer, according to their requirement they can choose options.
According to the regional classification, the Connected Car Market is widely spread across various global locations. Some of the popular areas include the Americas (North America, Canada, US), Europe (Western Europe, France, Italy, Spain, Germany, and others), Asia– Pacific (Asia, China, Japan, South Korea, India, and others), and The Middle East & Africa.
Out of all the regions, North America holds the dominant position and the maximum Connected Car Market Share in the entire market. With the global connected car impeccable demands and key players' collective efforts, the market has increased its supply and production all over the regions. The report mentions that it provides a maximum contribution for increasing market revenue generation.
The market has some major key players who have contributed to the Growth. The prominent key players are:
The prominent key players have adopted different strategies, new product launches, research and development, and geographical expansion to expand their market growth during the forecast period.
Continental AG, Robert Bosch GmbH, Harman International Industries, Inc., DENSO Corporation, Airbiquity Inc., and Visteon Corporation dominate the connected vehicle market. The related vehicle features are poised to become a common phenomenon in the developing nations like China, India, etc., market over the estimated forecasting period as OEMs have started offering the connected car features in their new respective models.
Hyundai Motor India Ltd launched Hyundai venue as the first brilliant connected SUV in the country with the most advanced connectivity solution- Hyundai BlueLink. The BluLink provides safety features that are the first in the industry, such as vehicle theft tracking and immobilization to recover stolen vehicles.
The connected car market has developed its report overview including the following points:
The comprehensive Connected Car Market Report has focused on the global car market's growth and development during the forecast period. The report has highlighted the growing demands of the worldwide market and increasing sales and production.
|Market Size||USD 166.0 Billion|
|CAGR||25.2% (2020 to 2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Technology, Components and Services|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Ford Motor Company (U.S.), Honda Motor Co. Ltd. (Japan), NXP Semiconductors (Netherlands), Texas Instruments Incorporated (U.S.), Sierra Wireless (Canada), General Motors (U.S.), Apple Inc. (U.S.), Audi AG (Germany), BMW (Germany), Microsoft Corporation (U.S.) and Freescale Semiconductor Inc. (U.S.)|
|Key Market Opportunities||
|Key Market Drivers||
Integration of nanosensors and compatibility with latest communication networking technologies are driving the global connected car market.
Lack of supportive infrastructure can hamper the global connected car market.
Integrated connectivity can lead in the global connected car market.
North America can lead the global connected car market.
Asia Pacific can emerge to be lucrative for the global connected car market.
NXP Semiconductors, Sierra Wireless, Apple Inc., Texas Instruments Incorporated, Honda Motor Co. Ltd., Freescale Semiconductor Inc., Ford Motor Company, Microsoft Corporation, General Motors, BMW, and Audi AG are key players of the global connected car market.