Connected Car Market: Current Analysis and Forecast (2021-2027)

Connected Car Market: Current Analysis and Forecast (2021-2027)

Global Connected Car is anticipated to display a CAGR of around ~18% over the forecast period (2021-2027). Automobile manufacturers have made integrating connection solutions into their vehicles a key focus. Many networking options are included in current cars, and they all require internet access to function properly. Embedded, integrated, and tethered connection options can all be used to give connectivity in a car. One of these connectivity options is utilized to provide Internet access to both the driver and the passengers in the car. With the use of a smartphone, modem, or connectivity device, an in-car hotspot can be constructed to enable Internet access to any devices within the vehicle. As a result, the market for connected cars is growing due to an increase in the popularity of connectivity solutions. Various governments in various nations are working on legislating various Advanced Driver-Assistance Systems (ADAS) and safety features in order to reduce the frequency of car accidents and thereby prevent fatalities and injuries. As a result, the Connected Car Market is primarily driven by the development in ADAS technology in automobiles. In nations such as Europe and the United States, ADAS technologies such as Anti-lock Braking System (ABS), Electronic Stability Control (ESC), and Autonomous Emergency Braking (AEB) have been mandated in automobiles. The overall demand for linked cars has surged as a result of the government's mandated restrictions. Other significant drivers driving the growth of the connected automobile market are increased demand for connectivity solutions, increased reliance on technology, and an increase in the tech-savvy population.

Insights Presented in the Report
"Amongst Technology, 5G segment to be most lucrative”

Based on technology, the market is segmented into 3G, 4G, and 5G. The 5G segment is projected to be the most lucrative segment, as several telecommunications firms are working on improved 5G networks to improve connectivity between connected automobiles and other devices. According to the 5G Automotive Association, a seamless 5G network can save more than 60% of traffic accidents. For example, South Korea and the EU have invested more than USD 1.5 billion to construct a 5G network for local initiatives. This should help to reduce the rising number of traffic accidents. Over the projected period, the satellite segment is expected to increase at the fastest rate. Only in regions where mobile towers are prevalent, such as urban areas, do cellular and Wi-Fi networks support connected automobiles. The network is entirely cut off once the vehicle departs the mobile tower's boundary, which could cause major problems for the occupants of the connected vehicles. To address this issue, a number of car OEMs, satellite operators, and mobile operators are working to construct hybrid satellite-terrestrial networks that would provide continuous connectivity. As a result, the connected automobile industry is likely to be propelled by rising demand for satellite and 5G networks.
"Amongst connectivity solution, Embedded segment dominated the market in 2020.”

Based on connectivity solution, the market is segmented into Integrated, Embedded, and Tethered. The embedded segment is projected to be the largest segment during the forecasted period, as various disruptive causes, such as government regulations, cost optimization of service plans, and the expansion of cloud-based services, can be credited to the long-term growth of embedded connected solutions. Automakers are expected to use embedded solutions to meet regulatory requirements and as a foundation for providing vehicle-centric telematics services, according to the GSMA. However, widespread acceptance will be contingent on overcoming the current limits of embedded solutions. For example, in the European Union, EOBD (the European version of OBD) is required for all gasoline automobiles. In actuality, practically all automobiles sold in the United States, regardless of where they are sold, are designed and certified to fulfill California's OBD II criteria
"Amongst Service, Driver Assistance segment dominated the market in 2020”

Based on the service, the market is segmented into Driver Assistance, Safety, Entertainment, Vehicle Management, and Mobility Management. The Driver Assistance segment is expected to dominate the market during the forecasted period, because adaptive cruise control, lane keep assisting, 360-degree camera, park assist, and other technologically advanced functions that increase the vehicle's safety are included in the advanced driver assistance system. Various countries throughout the world have established strict safety regulations on automakers. The Indian automobile industry, for example, adopted the BS-VI norm in April 2020, which incorporates reverse parking sensors in all car categories
"Amongst Sales Channel, OEMs segment dominated the market in 2020”

Based on the sales channel, the market is segmented into OEMs and Aftermarket. The OEMs segment is expected to dominate the market during the forecasted period because increasing technological advancements such as uninterruptible connectivity, cybersecurity, and the development of driverless vehicles with highly secure software are expected to help OEMs maintain their dominance during the forecast period. Furthermore, expanding cooperation with important players to develop high-quality and cost-effective components is another factor driving the OEM segment's growth.
"Asia Pacific represents the largest market.”

Because of the growing use of high-end and cost-effective connectivity solutions, the Asia Pacific region is likely to dominate the connected car industry. Consumer demand for in-vehicle integrated connectivity technologies, as well as the growing trend toward connected automobiles, have fueled the expansion of connected vehicles in this region. One of the important factors driving demand for advanced connected car features is the introduction of autonomous vehicle technology in the Asia Pacific connected car industry. Japan has one of the highest connected car adoption rates in the world, with China anticipated rising rapidly in the next years. In addition, the connected car services market will be driven in the coming years by the increased demand for aftermarket services as a result of the renewal of connected car service subscriptions. Some of the major players operating in the market include Daimler AG, Visteon Corporation, Robert Bosch GmbH, Airbiquity Inc., Ford Motor Company, Continental AG, AT&T Inc., Harman International Industries, Audi AG, Intellias Ltd

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