Global Connected Car Market 2016-2020
About Connected Car
The OEM segment of the global connected car market has many vendors. The aftermarket segment of the market has intense competition, which is expected to intensify during the forecast period as a result of product extensions and technological innovations. Many international players are expected to grow organically during the forecast period by expanding customer base and creating differentiated product through partnership with technology companies.
Technavio’s analysts forecast the global connected car market to grow at a CAGR of 32.26% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global connected car market for 2016-2020. To calculate the market size, the report considers the revenue generated from the connected car technologies across all regions.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Connected Car Market 2016-2020
Technavio recognizes the following companies as the key players in the global connected car market: Alpine Electronics, BMW, Delphi Automotive, Ford Motor, and NXP Semiconductors.
Other Prominent Vendors in the market are: Audi, Bosch, Continental, Google, and Mercedes-Benz.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is growing popularity of LTE data connections in cars will pave the way for Ethernet adoption. Internet access is an integral part of the connected car, and its performance allows the seamless operation of safety systems like ADAS, in addition to entertainment systems. The adoption of 4G LTE by OEMs is increasing in the global connected car market. For instance, GM unveiled the 4G LTE adoption through Chevy Malibu 2015 in June 2014, and Audi A3 is the first 4G LTE connected car in the US. GM has 4G LTE available in Chevy, Buick, and Cadillac models in the US through OnStar, while HSPA+ connectivity is provided by AT&T to Tesla and Volvo.”
According to the report, one driver in the market is government regulations to increase in-vehicle safety and improvement in safety controls. Governments worldwide have increased their efforts to improve safety standards and environmental conditions. Hence, telematics services such as eCall and ERA-GLONASS are increasingly being adopted, which in turn, is leading to increased adoption of telematics. A growing number of government agencies are focusing on preventing distracted driving, as a result, the regulation imposed on the automotive industry and its output has been tightened. To comply with these regulations, Opera launched a recent browser application for use in vehicles and BMW launched a project UR:BAN for advanced driver assistance in 2014. These two examples were a result of increased focus on the connectivity capability in vehicles. In addition, major advances have been made in the development of a web browser designed only for use on the iPhone supporting cars solutions.
Further, the report states that one challenge in the market is design complexity and technological challenges. Vendors are facing challenge in terms of designing a user interface that is affordable, less distracting, simple, and accessible. As applications of automotive connectivity solutions increase, the complexity of the system design required to manage these applications also grow. Advances in technology, immense range of features, and diverse connectivity options have made telematics and infotainment systems sophisticated. The automotive segment saw adoption transformation from radio/audio applications in early years to driver assistance in recent past. The greater the number of applications the more complex the design. In addition, the number of software solutions needed for each application makes automotive connectivity systems complex. Hence, the drivers need to learn how to efficiently handle these complex solutions to gain maximum benefit, and this is a challenge for the global connected car market.
Alpine Electronics, BMW, Delphi Automotive, Ford Motor, NXP Semiconductors, Audi, Bosch, Continental, Google, Mercedes-Benz.