NEW YORK, Sept. 15, 2020 /PRNewswire/ -- With the increasing preference for an improved driving experience, the global connected car market is projected to grow at a healthy 24.1% CAGR between 2020 and 2025. At this rate, the industry size will increase from $72,499.2 million in 2019 to $198,459.7 million by 2025, according to P&S Intelligence. With a rapid rise in the uptake of vehicles in developing economies, such as China, India, and Indonesia, the problem of traffic jams, lack of parking space, and accidents is becoming graver.
This factor is significant for the connected car market growth, as the integration of vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity can solve this problem to a great extent. With such features, not only can accidents be prevented, but drivers and passengers also get a better in-vehicle experience.
The connected car market advance is currently being restrained by the rapid spread of coronavirus. In order to check the proliferation of the infection, countries have shut down manufacturing plants and major commercial settings and put a restriction on the movement of people. This has stopped the supply of connected automobile components to vehicle manufacturers. Moreover, with many people taking pay cuts or facing unemployment, the demand for cars has come down significantly.
The connected car market will continue being dominated by the driver assistance category, based on service, till 2025. This would be a result of the increasing concerns of people regarding road safety and strong government in this regard, which, together, are leading to the swift integration of advanced driver-assistance systems (ADAS) in vehicles. For instance, all the cars manufactured in the U.S. since 2012 are mandated to have the electronic stability control (ESC) feature. In 2012, the European Commission also made the installation of ESC mandatory in all new cars, which will keep driving the market in this category.
Browse report with detailed COVID-19 impact analysis on " Connected Car Market Research Report: By Service (Driver Assistance, Entertainment, Vehicle Safety, Mobility Management, Fleet Management), Technology (2G/3G, 4G/ LTE, 5G), Application (Navigation, Infotainment, Telematics), Connectivity (Embedded, Integrated, Tethered), End Use (OEM, Aftermarket) - Global Industry Analysis and Growth Forecast to 2025" at: https://www.psmarketresearch.com/market-analysis/connected-car-market
Currently, the largest revenue contribution to the connected car market is made by North America, due to the early adoption of advanced technologies, such as the internet of things (IoT) and autonomous driving. In addition, several regionally-headquartered automotive OEMs, including Ford Motor Co., General Motors Co. and Tesla Inc., are spending heavily on research and development (R&D) activities revolving around enhanced driving technologies. Asia-Pacific (APAC) would grow the fastest in the industry in the near future, because automakers have started offering connected car solutions and other digital services, such as over-the-air (OTA) software updates and cybersecurity, in the region.
In order to gain a wider customer base and increase their revenue, players in the connected car market are rapidly launching new solutions, which:
Detect low-speed impacts, scratches, and damages via sound signals
Offer real-time application processing and automotive and enterprise networking capabilities
Record the data generated by the various automobile telematics applications
Enable mobile connectivity and faster transmission of data to and from the vehicle
Include crash detection, emergency call (eCall) response, and cloud connectivity features
The major companies operational in the global connected car market are DENSO CORP., Robert Bosch GmbH, NXP Semiconductors N.V., Valeo SA, Infineon Technologies AG, Delphi Technologies PLC, Continental AG, TE Connectivity Ltd., ZF Friedrichshafe.
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