| Status : Published | Published On : Dec, 2023 | Report Code : VRAT4020 | Industry : Automotive & Transportation | Available Format :
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Page : 210 |
Global Connected Car Market – Analysis and Forecast (2025-2030)
Industry Insights by Service (Connected Services, Autonomous Driving, and Safety & Security), by Connectivity (Tethered, Integrated, and Embedded), by Application (Navigation, Telematics, and Infotainment), by Hardware (Display, Sensors, Smart Antenna, and Electronic Control Unit (ECU)), by Network (Dedicated Short Range Communication (DSRC) and Cellular), by Technology (3G, 4G/LTE, and 5G), and by End-User(Original Equipment Manufacturer (OEM) and Aftermarket)
Industry Overview
The global connected car market is USD 51.4 billion in 2023 and is anticipated to reach USD 220.14 billion by 2030, thus growing at a CAGR of 25.6% during the forecast period 2025-2030. Connected car technology is a form of vehicle that has access to the internet. This helps in connecting the vehicle to the real world and obtaining real-time data from outside, thereby ensuring the safety of the vehicle. It comprises OEM hardware, which permits the networking of vehicles in different versions.
The globally connected car market is growing at a significant rate, owing to an increase in initiatives taken by the government to develop intelligent transportation systems, increase in production of vehicles, technology development, rising demand for luxury and comfort in vehicles, rising demand for smartphone features in the car, and automated driving technologies including passenger safety features will propel the growth of the globally connected car market.
The market has witnessed a surge in demand for the connected service segment due to the mounting demand of customers for more convenient features such as navigation, autopilot, remote diagnostic, multimedia media streaming, etc., comfort, performance, safety, and security, and also includes powerful network technology. This helps in facilitating real-time communication. Furthermore, the rising demand for insurance telematics and route tracking services is expected to drive the growth of the globally connected car market.
The global automotive industry has been severely impacted by the COVID-19 outbreak. The COVID-19 pandemic has caused a decline in car production, resulting in a decline in the overall connected car market. However, production in some countries has started to recover slowly.
Connected Car Market Segmentation
Insight by Service
- Connected Services
- Autonomous Driving
- Safety
- Security
Based on service, the global connected car market is divided into connected services, autonomous driving, and safety & security. Among all services, the connected services segment accounts for the largest share in the market, owing to the rising demand of customers for more convenient features such as navigation, autopilot, remote diagnostic, multimedia streaming, and an upsurge in government authorization. The autopilot segment is anticipated to be the fastest-growing segment during the forecast period 2023-2030 owing to safety and convenient features in vehicles.
Insight by Connectivity
- Tethered
- Integrated
- Embedded
Based on connectivity, the global connected car market is segmented into tethered, integrated, and embedded. Among all connectivity, the embedded segment dominates the market owing to government mandates, cost optimization of service plans, and growth of cloud-based services.
Insight by Application
- Navigation
- Telematics
- Infotainment
Based on application, the market is subdivided into navigation, telematics, and infotainment. Among all applications, navigation applications account for the largest share in the market, due to the increasing requirement for traveling in cities and cost-effectiveness. Moreover, the increasing requirement for real-time in-vehicle navigation and improved optimization along with proper route planning features, for a smooth journey, will propel the growth of the global car-connected market.
Insight by Hardware
- Display
- Sensors
- Smart Antenna
- Electronic Control Unit (ECU)
Based on hardware, the market is subdivided into the display, sensors, smart antenna, and an electronic control unit (ECU). Among all hardware, the electronic control unit (ECU) accounts for the largest share of the market due to the rising innovation in various sensors and other hardware components.
Insight by Network
- Dedicated Short Range Communication (DSRC)
- Cellular
Based on the network, the global car-connected market is divided into Dedicated Short Range Communication (DSRC) and Cellular. DSRC holds the highest market share owing to the secure communication network which promotes communication in the vehicles. The cellular segment is anticipated to be the fastest-growing segment owing to the rising investment in deploying 5G networks globally.
Insight by Technology
- 3G
- 4G/LTE
- 5G
Based on the network, the global connected car market is categorized into 3G, 4G/LTE, and 5G. The 5G segment is anticipated to grow at the fastest rate in the market due to the surge in demand for driving-related information in automobiles as it improves the latency time and improves the driving experience by providing real-time traffic updates. Furthermore, the rising demand for better coverage enhancement globally will drive the integration of 5G communication technology in vehicles.
Insight by End-User
- Original Equipment Manufacturer (OEM)
- Aftermarket
Based on end-users, the global connected car market is bifurcated into original equipment manufacturer (OEM) and aftermarket. The OEM segment dominates the market owing to the rise in requirement for these solutions as a result of the implementation of government regulations regarding vehicle and passenger safety globally.
Geographical Segmentation
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific (APAC)
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- Rest of the World (RoW)
- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries
Geographically, North America dominates the connected cars market owing to the presence of various automobile manufacturers and technology providers in the region. In addition, the mounting demand for technologically advanced characteristics in a passenger car, increasing vehicle safety and security norms, rising demand for vehicle-to-vehicle (V2V) connectivity technology, and expanding government permission is also fuelling the growth of the North American connected car market.
Asia-Pacific is anticipated to witness the fastest growth in the connected car market due to the widespread adoption of digital services such as cybersecurity. Moreover, the rising smartphone penetration and adoption of high-speed internet services will push the sale of smart vehicles in the region.
Global Connected Car Market Report Coverage
|
Report Metric |
Details |
|
Historical Period |
2018 - 2023 |
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Base Year Considered |
2024 |
|
Forecast Period |
2025 - 2030 |
|
Market Size in 2024 |
U.S.D. 51.4 Billion |
|
Revenue Forecast in 2030 |
U.S.D. 220.14 Billion |
|
Growth Rate |
25.6% |
|
Segments Covered in the Report |
By Service,By Connectivity,By Application,By Hardware,By Network,By Technology,By End-User |
|
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
|
Regions Covered in the Report |
North America,Europe,Asia-Pacific (APAC),Rest of the World (RoW) |
Industry Dynamics
Connected Car Market Growth Drivers
Technological development, increase in disposable income among people, and substantial development in telecommunication technology led to a new level of connectivity, vehicle telematics, and infotainment technology have offered HD touch screens, navigation tools, and high-speed internet with the outer world while traveling the factor contributing to the growth of the global connected cars market. This feature offers real-time traffic control, provides remote diagnostics, and increases company logistics automation.
Moreover, the rising concern for safety and security by the government, end-users, and industry players will propel the growth of the market. Nevertheless, developed technologies, for instance, lane assist, automatic brakes, and ADAS will enhance the driving experience and will provide vehicular safety.
Connected Car Market Challenges
Cybersecurity is a key challenge that needs to be handled. The lack of a high-speed network and underdeveloped IT and communication infrastructure in emerging economies will hinder the growth of the connected car market in Mexico, Brazil, and India. Certain issues related to safety and security such as unauthorized access to various automobile applications or breaking in-vehicle connectivity systems and unavailability of internet connectivity may hamper the growth of the globally connected car market.
Connected Car Market Opportunities
The increased user experience also depends on wireless connectivity for connected cars. Therefore, industry players are focusing on 5G to provide safety and efficiency for connected cars. Moreover, the increasing demand for lightweight suspension systems and enhancement in advanced suspension systems are anticipated to provide promising opportunities for the growth of the globally connected car market.
Connected Car Market Industry Ecosystem
The policymakers are establishing a coherent regulatory environment to promote safety and security, rising adoption of AI interfaces, and environmental sustainability in connected cars. The leading OEMs, tech start-ups, and automotive manufacturers are working to improve the user driver experience by providing in-vehicle entertainment, safety technology, streaming media, advanced driver assistance systems, wifi access, calls, and other features.
Connected Car Market Competitive Insight
The industry players in the connected car market are catering to the demand by collaborating with small players and investing in technologically advanced connected cars across the globe. The companies are adopting strategies such as product development, mergers & acquisitions, contracts & agreements, and strategic partnerships to sustain in the market.
Denso Corporation is a global automotive components manufacturer headquartered in the city of Kariya, Aichi Prefecture, Japan. After becoming independent from Toyota Motor, the company was founded as Nippon Denso Co. Ltd. in 1949.
Infineon helps to make smart cars a reality with products and solutions that are precisely attuned to the customer requirements. Infineon’s product range elevates automated driving to ever-higher levels while propping up electrical/electronic (E/E) vehicle architectures and boosting digitalization, connectivity and data security. Company supplies other solutions that address infotainment, comfort, driving safety, digital cockpits, and convenience and lighting technology.
Some of the key players operating in the connected cars market are DENSO CORPORATION, Infineon Technologies AG, ON Semiconductor Components Industries, LLC, Robert Bosch GmbH, HARMAN International, Continental AG, VALEO, NXP Semiconductors, TOYOTA MOTOR CORPORATION, and ZF Friedrichshafen AG.
Recent Developments by Key Players
Infineon Technologies AG and GlobalFoundries (GF) has signed a new multi-year agreement on the supply of Infineon’s AURIX™ TC3x 40 nanometer automotive microcontrollers as well as power management and connectivity solutions. The additional capacity will contribute to secure Infineon’s business growth henceforth.
HARMAN today announced that Tata Motors has selected the HARMAN Ignite Store as its in-vehicle app store, bringing reliable, easily accessible and safe mobility experiences to more customers across a new geographical region.
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Source: VynZ Research
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Source: VynZ Research
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Connected Car Market