Connected Cars: Current Analysis and Forecast (2021-2027)

Connected Cars: Current Analysis and Forecast (2021-2027)

The connected cars market is expected to register a CAGR of approx. 18% over the period of 2022-2028. A connected car provides connectivity on wheels by providing comfort, convenience, performance, safety, and security, as well as powerful network technology. This allows the driver to connect to online platforms and communicate in real time. Through the network connection, it can share content with a variety of devices both inside and outside the car. The data from the vehicle is shared using RADAR, LiDAR, and advanced sensors. Car manufacturers have developed advanced connectivity solutions such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems in recent years. Vehicles that are connected to various devices help to improve their safety by providing the driver with real-time data about the vehicle's surroundings. The primary goal of connected vehicle adoption is to avoid collisions, reduce fatalities, and improve vehicle management efficiency. The growth of the connected cars can be attributed to increase in consumer demand for connectivity solutions across the globe which boosting the adoption of inorganic growth strategies among key industry players around the globe. For instance, in November 2021, continental developed a technology solution for highly automated driving: an intelligent software that enables complex driving maneuvers autonomously. The Next Generation Driving Planner is an innovative software solution that enables highly automated driving from Level 3. This means vehicles can master certain driving tasks independently and without driver intervention. The software developed by Continental represents a significant leap forward in driving intelligence. Owing to these glaring statistics increase in demand for the technological advance cars are contribute to the growth of the market in the forthcoming period as well. Furthermore, the connected cars market is anticipated to grow on account of rapid technological advancements and the increase in dependency on technology. However, some of the restraints in the market including the interrupted connectivity due to fail in internet services are impeding the growth of this market all over the world.

• Based on the technology, the connected cars market is segmented into 3G, 4G-LTE, and 5G. The 4G segment accounted for a significant market share and it is estimated that it will grow rapidly during the projected timeframe. Several telecommunications firms are working on 4G networks to improve communication between connected vehicles and external devices.
• Based on the connectivity solution, the market is fragmented into integrated, embedded, and tethered. The integrated segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. When compared to embedded and tethered systems, these systems offer unlimited data sharing possibilities and are less expensive. Key OEMs from around the world have collaborated with a variety of key players to develop advanced integrated systems for connected vehicles that provide consumers with seamless connectivity.
• Based on the application, the market is fragmented into mobility management, telematics, infotainment, and driver assistance. The driver assistance segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. The advanced driver assistance system consists of technologically advanced features that improve vehicle safety, such as adaptive cruise control, lane keep assist, 360 view camera, park assist, and so on. Globally, numerous governments have imposed strict safety standards on automakers.
• Based on the sales channel, the market is fragmented into OEMs and aftermarkets. The OEMs segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. The dominance of OEMs is anticipated to be aided by growing technological advancements such as uninterruptible connectivity, cybersecurity, and the development of driverless cars integrated with highly secure software during the forecast period.
• For a better understanding of the market adoption of the connected cars, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, and Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea , and Rest of APAC), and Rest of World. Asia Pacific constitutes a highest CAGR in the connected car market owing to the growing adoption of high-end and cost-effective connectivity solutions Furthermore, consumer demand for in-vehicle embedded connectivity systems, as well as the growing trend toward connected cars, have fueled the growth of connected vehicles in this region.
• Some of the major players operating Continental AG, Hyundai Motor Co, Ford Motor Company, VOLKSWAGEN GROUP, AT&T Inc, TomTom NV, Mercedes-Benz Group AG, General Motors Company, Bayerische Motoren Werke AG, Robert Bosch GmbH among others. Several M&A’s along with partnerships have been undertaken by these players.