Connected Cars Market Size, Share & Analysis Report, 2023-2032
The global connected cars market size was exhibited at USD 101.56 billion in 2022 and is projected to hit around USD 496.61 billion by 2032, growing at a CAGR of 17.2% during the forecast period 2023 to 2032.
Key Pointers:
Connected car facilitates connectivity on wheels offering comfort, convenience, performance, safety, and security along with powerful network technology. This enables the driver to connect with online platforms, thereby facilitating real-time communication. Rise in consumer demand for connectivity solutions, surge in need for constant connectivity, increase in dependency on technology, and upsurge in tech-savvy population are the key factors that contribute toward the growth of the global connected cars market. Over time, various connectivity solutions have been developed by car manufacturers and service providers, such as the machine-to-machine (M2M) connectivity platform. This M2M feature in a car enables interconnectivity between two connected cars. The car is equipped with numerous sensors and processors, which provide accurate and real-time information to the driver. This in turn fuels the adoption of connected cars across the globe, thus supplementing the growth of the market.
Connected Cars Market Report Scope
|
Report Coverage |
Details |
|
Market Size in 2023 |
USD 119.03 Billion |
|
Market Size by 2032 |
USD 496.61 Billion |
|
Growth Rate From 2023 to 2032 |
CAGR of 17.2% |
|
Base Year |
2022 |
|
Forecast Period |
2023 to 2032 |
|
Segments Covered |
By Technology, By Connectivity Solution, By Service and By End Use |
|
Market Analysis (Terms Used) |
Value (US$ Million/Billion) or (Volume/Units) |
|
Regional Scope |
North America; Europe; Asia Pacific; Central and South America; the Middle East and Africa |
|
Key Companies Profiled |
Airbiquity Inc., AT&T, Audi AG, BMW Group, CloudMade, Continental AG, Daimler AG, Ford Motor Company, Intellias Ltd., LUXOFT and Others. |
Market Dynamics
DRIVER: Increased demand for enhanced user comfort, safety, and convenience
An increase in ADAS features in cars is the primary driver for the connected car market, as these features ensure enhanced levels of safety. Governments in various countries also focus on mandating various ADAS and safety features. There are various ADAS features mandated in Europe and the US. For instance, Anti-lock Braking System (ABS) has been mandatory for all new vehicles sold in the EU since 2004, and Electronic Stability Control (ESC) became mandatory in 2014. Autonomous Emergency Braking (AEB) has been mandatory for all commercial vehicles sold in the EU since 2015. Similarly, connected car features such as e-call have been mandatory in all new cars sold within the EU since April 2018. As governments mandate various ADAS and other safety-related connected car features, the overall demand for connected cars has increased.
RESTRAINTS: Lack of infrastructure for the proper functioning of connected cars
Due to limited network connectivity on highways, vehicles are not connected to each other and the cloud. In developing countries such as Mexico, Brazil, and India, IT infrastructure development on highways is slower than in developed economies. 3G and 4G-LTE communication networks are presently limited to urban and semi-urban areas. While several third-party logistics companies operate in semi-urban and rural areas, there are low connectivity issues. Therefore, the lack of IT and communication infrastructure in developing regions and lag in government norms can hamper the growth of the connected car market in these countries. Also, as providers of telecom services, industry players might become subject to country-specific telecom regulations, such as lawful intercept and in-country entity requirements. The interoperability of the various platforms and the cross-border use cases will have to be discussed and regulated. The reliance on data networks also raises the question of net neutrality, where internet service providers give some data transmission priority.
OPPORTUNITIES: Emergence of various technologies such as 5G and AI
The enhanced user experience for all connected cars depends on wireless connectivity. Many telecom industry players are developing 5G to increase the safety and efficiency of connected cars. According to the international 5G automotive associations, 68% of accidents can be avoided with the upcoming 5G technology. For instance, the EU and South Korea have signed a deal to work together on 5G development, while both promised USD 782 million and USD 1.5 billion in funding for local 5G projects. In the UK, USD 78 million of funding has been commissioned for a 5G research facility known as the 5G Innovation Centre (5GIC). With the increasing use of sensors and other data technologies, AI will be key to making sense of everything. Some automobiles already use AI for Level 3 autonomous driving, but for the industry to reach Level 5, major enhancements must be made to the cars and the infrastructure.
CHALLENGES: Cybersecurity
Despite major developments in connected car technology, cybersecurity remains a major challenge. Connected cars comprise hardware, software, mobile apps, and Bluetooth, each vulnerable to cyberattacks. There are various instances where cybersecurity has created a nuisance. For instance, in 2015, Fiat Chrysler recalled around 1.4 million vehicles due to safety reasons. Hackers took control of the car's infotainment system, which was connected to the mobile data network. Security researchers demonstrated that hackers could control a Jeep Cherokee remotely using the car’s infotainment system connected to the mobile data network. Similarly, Tesla S and Nissan Leaf are also examples of the threat of cyberattacks that connected cars face.
The Asia Pacific connected car market is expected to register the highest growth rate during the forecast period
The Asia Pacific market is expected to witness the fastest CAGR growth during the forecast period. Currently, the penetration of connected cars in Asia is concentrated, with China expected to witness significant growth in the coming years. The market's growth is driven primarily by increasing vehicle safety and security norms, demand for vehicle-to-vehicle (V2V) connectivity technology, and the incorporation of IoT in the automotive industry. Integration of 5G in vehicle models is expected to be a major factor driving the connected car market. For instance, in 2022, GM announced its plan to roll out 5G in the Chinese market. The 5G service will provide faster internet speeds over the OnStar 4G LTE Wi-Fi that it already offers in its vehicles. These faster upload/download speeds will enable over-the-air updates in more vehicles. They will also help new GM vehicles connect and communicate with other vehicles on the road (vehicle-to-vehicle) and the public road infrastructure (vehicle-to-infrastructure). Since China is the largest automobile market, the growth in telematics adoption in China will strongly drive the telematics industry in APAC. The emergence of autonomous vehicle technology in the Asia Pacific market is one of the key trends increasing the demand for advanced connected car features. Also, the growing popularity of shared mobility and ride-hailing services is expected to boost the demand for connected car features in the Asia Pacific. Growing penetration of smartphone connectivity will also provide a strong boost to the market. Additionally, the increasing demand for aftermarket services through the renewal of connected car service subscriptions will drive the connected car services market in the coming years.
Some of the prominent players in the Connected Cars Market include:
Segments Covered in the Report
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Connected Cars market.
By Technology
By Connectivity Solution
By Service
By End Use
By Region
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology (Premium Insights)
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Connected Cars Market
5.1. COVID-19 Landscape: Connected Cars Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Connected Cars Market, By Technology
8.1. Connected Cars Market, by Technology, 2023-2032
8.1.1. 3G
8.1.1.1. Market Revenue and Forecast (2020-2032)
8.1.2. 4G/LTE
8.1.2.1. Market Revenue and Forecast (2020-2032)
8.1.3. 5G
8.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 9. Global Connected Cars Market, By Connectivity Solution
9.1. Connected Cars Market, by Connectivity Solution, 2023-2032
9.1.1. Integrated
9.1.1.1. Market Revenue and Forecast (2020-2032)
9.1.2. Embedded
9.1.2.1. Market Revenue and Forecast (2020-2032)
9.1.3. Tethered
9.1.3.1. Market Revenue and Forecast (2020-2032)
Chapter 10. Global Connected Cars Market, By Service
10.1. Connected Cars Market, by Service, 2023-2032
10.1.1. Driver Assistance
10.1.1.1. Market Revenue and Forecast (2020-2032)
10.1.2. Safety
10.1.2.1. Market Revenue and Forecast (2020-2032)
10.1.3. Entertainment
10.1.3.1. Market Revenue and Forecast (2020-2032)
10.1.4. Well-being
10.1.4.1. Market Revenue and Forecast (2020-2032)
10.1.5. Vehicle Management
10.1.5.1. Market Revenue and Forecast (2020-2032)
10.1.6. Mobility Management
10.1.6.1. Market Revenue and Forecast (2020-2032)
Chapter 11. Global Connected Cars Market, By End Use
11.1. Connected Cars Market, by End Use, 2023-2032
11.1.1. OEM
11.1.1.1. Market Revenue and Forecast (2020-2032)
11.1.2. Aftermarket
11.1.2.1. Market Revenue and Forecast (2020-2032)
Chapter 12. Global Connected Cars Market, Regional Estimates and Trend Forecast
12.1. North America
12.1.1. Market Revenue and Forecast, by Technology (2020-2032)
12.1.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.1.3. Market Revenue and Forecast, by Service (2020-2032)
12.1.4. Market Revenue and Forecast, by End Use (2020-2032)
12.1.5. U.S.
12.1.5.1. Market Revenue and Forecast, by Technology (2020-2032)
12.1.5.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.1.5.3. Market Revenue and Forecast, by Service (2020-2032)
12.1.5.4. Market Revenue and Forecast, by End Use (2020-2032)
12.1.6. Rest of North America
12.1.6.1. Market Revenue and Forecast, by Technology (2020-2032)
12.1.6.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.1.6.3. Market Revenue and Forecast, by Service (2020-2032)
12.1.6.4. Market Revenue and Forecast, by End Use (2020-2032)
12.2. Europe
12.2.1. Market Revenue and Forecast, by Technology (2020-2032)
12.2.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.2.3. Market Revenue and Forecast, by Service (2020-2032)
12.2.4. Market Revenue and Forecast, by End Use (2020-2032)
12.2.5. UK
12.2.5.1. Market Revenue and Forecast, by Technology (2020-2032)
12.2.5.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.2.5.3. Market Revenue and Forecast, by Service (2020-2032)
12.2.5.4. Market Revenue and Forecast, by End Use (2020-2032)
12.2.6. Germany
12.2.6.1. Market Revenue and Forecast, by Technology (2020-2032)
12.2.6.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.2.6.3. Market Revenue and Forecast, by Service (2020-2032)
12.2.6.4. Market Revenue and Forecast, by End Use (2020-2032)
12.2.7. France
12.2.7.1. Market Revenue and Forecast, by Technology (2020-2032)
12.2.7.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.2.7.3. Market Revenue and Forecast, by Service (2020-2032)
12.2.7.4. Market Revenue and Forecast, by End Use (2020-2032)
12.2.8. Rest of Europe
12.2.8.1. Market Revenue and Forecast, by Technology (2020-2032)
12.2.8.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.2.8.3. Market Revenue and Forecast, by Service (2020-2032)
12.2.8.4. Market Revenue and Forecast, by End Use (2020-2032)
12.3. APAC
12.3.1. Market Revenue and Forecast, by Technology (2020-2032)
12.3.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.3.3. Market Revenue and Forecast, by Service (2020-2032)
12.3.4. Market Revenue and Forecast, by End Use (2020-2032)
12.3.5. India
12.3.5.1. Market Revenue and Forecast, by Technology (2020-2032)
12.3.5.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.3.5.3. Market Revenue and Forecast, by Service (2020-2032)
12.3.5.4. Market Revenue and Forecast, by End Use (2020-2032)
12.3.6. China
12.3.6.1. Market Revenue and Forecast, by Technology (2020-2032)
12.3.6.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.3.6.3. Market Revenue and Forecast, by Service (2020-2032)
12.3.6.4. Market Revenue and Forecast, by End Use (2020-2032)
12.3.7. Japan
12.3.7.1. Market Revenue and Forecast, by Technology (2020-2032)
12.3.7.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.3.7.3. Market Revenue and Forecast, by Service (2020-2032)
12.3.7.4. Market Revenue and Forecast, by End Use (2020-2032)
12.3.8. Rest of APAC
12.3.8.1. Market Revenue and Forecast, by Technology (2020-2032)
12.3.8.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.3.8.3. Market Revenue and Forecast, by Service (2020-2032)
12.3.8.4. Market Revenue and Forecast, by End Use (2020-2032)
12.4. MEA
12.4.1. Market Revenue and Forecast, by Technology (2020-2032)
12.4.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.4.3. Market Revenue and Forecast, by Service (2020-2032)
12.4.4. Market Revenue and Forecast, by End Use (2020-2032)
12.4.5. GCC
12.4.5.1. Market Revenue and Forecast, by Technology (2020-2032)
12.4.5.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.4.5.3. Market Revenue and Forecast, by Service (2020-2032)
12.4.5.4. Market Revenue and Forecast, by End Use (2020-2032)
12.4.6. North Africa
12.4.6.1. Market Revenue and Forecast, by Technology (2020-2032)
12.4.6.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.4.6.3. Market Revenue and Forecast, by Service (2020-2032)
12.4.6.4. Market Revenue and Forecast, by End Use (2020-2032)
12.4.7. South Africa
12.4.7.1. Market Revenue and Forecast, by Technology (2020-2032)
12.4.7.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.4.7.3. Market Revenue and Forecast, by Service (2020-2032)
12.4.7.4. Market Revenue and Forecast, by End Use (2020-2032)
12.4.8. Rest of MEA
12.4.8.1. Market Revenue and Forecast, by Technology (2020-2032)
12.4.8.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.4.8.3. Market Revenue and Forecast, by Service (2020-2032)
12.4.8.4. Market Revenue and Forecast, by End Use (2020-2032)
12.5. Latin America
12.5.1. Market Revenue and Forecast, by Technology (2020-2032)
12.5.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.5.3. Market Revenue and Forecast, by Service (2020-2032)
12.5.4. Market Revenue and Forecast, by End Use (2020-2032)
12.5.5. Brazil
12.5.5.1. Market Revenue and Forecast, by Technology (2020-2032)
12.5.5.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.5.5.3. Market Revenue and Forecast, by Service (2020-2032)
12.5.5.4. Market Revenue and Forecast, by End Use (2020-2032)
12.5.6. Rest of LATAM
12.5.6.1. Market Revenue and Forecast, by Technology (2020-2032)
12.5.6.2. Market Revenue and Forecast, by Connectivity Solution (2020-2032)
12.5.6.3. Market Revenue and Forecast, by Service (2020-2032)
12.5.6.4. Market Revenue and Forecast, by End Use (2020-2032)
Chapter 13. Company Profiles
13.1. Airbiquity Inc.
13.1.1. Company Overview
13.1.2. Product Offerings
13.1.3. Financial Performance
13.1.4. Recent Initiatives
13.2. AT&T
13.2.1. Company Overview
13.2.2. Product Offerings
13.2.3. Financial Performance
13.2.4. Recent Initiatives
13.3. Audi AG
13.3.1. Company Overview
13.3.2. Product Offerings
13.3.3. Financial Performance
13.3.4. Recent Initiatives
13.4. BMW Group
13.4.1. Company Overview
13.4.2. Product Offerings
13.4.3. Financial Performance
13.4.4. Recent Initiatives
13.5. CloudMade
13.5.1. Company Overview
13.5.2. Product Offerings
13.5.3. Financial Performance
13.5.4. Recent Initiatives
13.6. Continental AG
13.6.1. Company Overview
13.6.2. Product Offerings
13.6.3. Financial Performance
13.6.4. Recent Initiatives
13.7. Daimler AG
13.7.1. Company Overview
13.7.2. Product Offerings
13.7.3. Financial Performance
13.7.4. Recent Initiatives
13.8. Ford Motor Company
13.8.1. Company Overview
13.8.2. Product Offerings
13.8.3. Financial Performance
13.8.4. Recent Initiatives
13.9. Intellias Ltd.
13.9.1. Company Overview
13.9.2. Product Offerings
13.9.3. Financial Performance
13.9.4. Recent Initiatives
13.10. LUXOFT
13.10.1. Company Overview
13.10.2. Product Offerings
13.10.3. Financial Performance
13.10.4. Recent Initiatives
Chapter 14. Research Methodology
14.1. Primary Research
14.2. Secondary Research
14.3. Assumptions
Chapter 15. Appendix
15.1. About Us
15.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers