The connected car uses mobile technology to control major functions remotely. It comprises of OEM hardware, which permits networking of vehicles in different versions. The globally connected car market is growing at a significant rate, due to an upsurge in the need for safer, more efficient and convenient driving and government mandates for connected car applications in a passenger car.
Different services contributed to the connected car market size. The market has witnessed a high demand for connected service segment in the coming years due to mounting demand of customer for more convenient features such as navigation, autopilot, remote diagnostic, and multimedia media streaming.
Insight by Service
On the basis of service, the connected car market is subdivided into connected services, autonomous driving, and safety & security. Among all services, connected services segment accounted the largest share in the market, due to mounting demand of customer for more convenient features such as navigation, autopilot, remote diagnostic, multimedia media streaming, and an upsurge in government authorization.
Insight by Connectivity
On the basis of connectivity, the market is subdivided into tethered, integrated, and embedded. Among all connectivity’s, embedded segment accounted the largest share in the market due to its user-friendly and compact property.
Insight by Application
On the basis of application, the market is subdivided into navigation, telematics, and infotainment. Among all applications, navigation application accounted the largest share in the market, due to the mounting requirement for traveling in cities and cost-effectiveness.
Insight by Hardware
On the basis of hardware, the market is subdivided into the display, sensors, smart antenna, an electronic control unit (ECU). Among all hardware, the electronic control unit (ECU) accounted the largest share in the market due to the mounting invention of data by several sensors and other hardware components.
Insight by Transponder
On the basis of the transponder, the market is subdivided into the onboard unit and roadside unit.
Insight by Network
On the basis of the network, the market is subdivided into 4G, 2G, and 3G. The 4G segment accounted the largest share and is expected to grow at fastest rate in the market due to mounting need for fast and advanced technology for the connected cars, and allows drivers to connect and share essential information.
The upsurge in the need for safer, more efficient, and convenient driving, the upsurge in need of the alert system, and vehicle diagnostics and maintenance, the upsurge in industry compliance standards, multiple connectivity solution type and government mandates for connected car applications in passenger car are the primary growth drivers for connected car market.
The intelligent transportation system, the upsurge in need for improved driving experience, and the evolution of the new value chain ecosystem of the automotive industry are also facilitating the growth of the connected car market.
The upsurge in the threat of cybersecurity for smart vehicles, cost optimization of the connected car technology in the vehicle, lack of awareness, additional expenditure and non-availability of uninterrupted & seamless connectivity are the major challenges for the growth of connected car market. In addition, lack of supporting infrastructure for connected cars in developing countries and unavailability of standard platforms are also hindering the growth of the market.
Globally industry players are leveraging market growth through launching new products. Moreover, the manufacturing companies trying to enter the smart parking systems market require a high level of capital which poses a major barrier to the entry of new players. This offers an edge to the established players in the industry competition.
Geographically, North America accounted the largest share in the market due to mounting information technology and communication infrastructure. In addition, the mounting demand of technologically advanced characteristic in a passenger car, and expanding government permission are also fueling the growth of the North American connected car market.
Asia-Pacific is observed to witness the fastest growth in the connected car market due to an upsurge in digital services such as updates and cybersecurity. In addition, mounting connected car devices in the passenger car, unique communication infrastructure, government guidelines for vehicle data security and strategic associations between automotive and non-automotive companies are also up surging growth of the Asia-Pacific connected car market.
Key players in the connected car market are catering the demand by collaborating with small players and investing in technologically advanced connected car across the globe. In April 2018, Valeo S.A., and Docomo partnered to develop next-generation mobility services and connected cars.
In addition, in April 2017, Delphi Technologies Plc signed an agreement with Rosenberger, to improve its capabilities in high-speed data transmission. Delphi Technologies Plc., DENSO Corporation, ZF Friedrichshafen, Robert Bosch GmbH, Aisin Seiki, Valeo S.A., and Autoliv Inc. are the key players offering the connected car.