Connected Car Market to Grow by USD 341.7 Billion (2024-2028) with Rising Internet Penetration, Report on AI-Driven Transformation - Technavio

NEW YORK, Nov. 26, 2024 /PRNewswire/ -- Report with the AI impact on market trends - The global connected car market size is estimated to grow by USD 341.7 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 36.5% during the forecast period. Increasing internet penetration and its impact on the connected cars market is driving market growth, with a trend towards increasing number of vehicles launches featuring connected technologies. However, design complexity and technological challenges poses a challenge.Key market players include Airbiquity Inc., Alps Alpine Co. Ltd., AT and T Inc., Bayerische Motoren Werke AG, BorgWarner Inc., DXC Technology Co., Ford Motor Co., Information Technologies Institute Intellias LLC, Mercedes Benz Group AG, NXP Semiconductors NV, Qualcomm Inc., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schaeffler AG, Sierra Wireless Inc., Telefonica SA, Tesla Inc., Valeo SA, Volkswagen AG, and Zubie Inc..

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Key Market Trends Fueling Growth

The Connected Car market is experiencing significant growth, driven by trends such as vehicle infotainment, Advanced Driver-Assistance Systems (ADAS) features, and autonomous cars. V2V communication, electric mobility, and predictive technology are also key areas of focus. Vehicle downtime is a concern, leading to increased demand for connected car services and production of vehicles with faster network technology like 5G and satellite. Legislation and road safety are influencing the market, with collision warning, lane assistance, and blind spot detection becoming standard features. Technology companies are investing in 3G, 4G, and 5G networks, enabling real-time communication between cars and online platforms. Car manufacturers and service providers are collaborating to offer comfort, convenience, performance, safety, and security features. Sensors and processors are essential components, along with advanced diagnostics and fleet management. The transition to connected cars involves addressing maintenance cost and schedule, as well as data transfer speed and bandwidth. Connected cars offer remote control access, infotainment, GPS tracking, and smartphone integration. Telematics services provide real-time vehicle data, enabling predictive maintenance and fuel consumption optimization. The market is evolving rapidly, with legislative policies and technological advancements shaping the future of the Connected Car industry. 

Connected cars are becoming increasingly preferred by consumers due to their safety and environmental advantages. In response, vendors in the connected car market are expanding their product lines by introducing new models with enhanced features. By broadening their offerings, these companies aim to gain competitive edges and expand their market presence in the global connected car industry. The continuous launch of new connected car models is anticipated to boost sales and significantly contribute to the market growth during the forecast period. 

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Market Challenges

• The Connected Car market is experiencing significant growth, driven by advancements in vehicle infotainment, ADAS features, and the development of autonomous cars. Challenges include vehicle downtime during production, integrating predictive technology, and addressing legislative policies. Electric mobility and V2V communication are key trends, with 5G networks and satellite technology enabling real-time communication. Technology companies are investing in 3G, 4G, and 5G networks, sensors, processors, and online platforms for enhanced comfort, convenience, performance, safety, and security. Vehicle manufacturers and service providers collaborate to offer connected car services, including remote control access, GPS tracking, advanced diagnostics, and fleet management. The transition to connected cars requires addressing maintenance cost, data transfer speed, and bandwidth concerns. Safety features like collision warning, lane assistance, and blind spot detection are crucial, as is ensuring network technology security. The production of connected cars involves integrating various sensors and systems, while the aftermarket offers opportunities for upgrades and maintenance schedule optimization. The future of connected cars lies in seamless integration of smartphones, internet services, and advanced diagnostics.
• The connected car market presents vendors with challenges in creating user-friendly, cost-effective, and accessible infotainment and telematics systems. As demand for automotive connectivity solutions grows, system complexity becomes essential to manage various applications. Advanced technologies, extensive features, and multiple software solutions add complexity to connectivity systems. Drivers seek efficient handling of these complexities to maximize benefits, posing a challenge for the global market. Vendors must focus on designing less distracting, affordable, and simple systems to meet consumer needs.

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Segment Overview 

This connected car market report extensively covers market segmentation by

1. Connectivity 
• 1.1 Embedded solutions
• 1.2 Integrated solutions
• 1.3 Tethered solutions
2. End-user 
• 2.1 OEM
• 2.2 Aftermarket
3. Geography 
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Embedded solutions- The connected car market is experiencing significant growth as automakers integrate telematics systems with navigation and smartphone capabilities. These systems are evolving to include embedded software and smartphone applications for entertainment, navigation, communication, security, and internet services. OEMs collaborate with technology companies to offer in-vehicle products and services, such as Pioneer's CarPlay integration and Hyundai's Blue Link infotainment mirroring. GM's MyLink and IntelliLink systems support third-party applications. BlackBerry's Jarvis 2.0 software composition analysis tool aids in checking and updating third-party software modules. The increasing popularity of hybrid vehicles is driving smartphone manufacturers to develop apps for real-time battery status. BMW's Remote application allows BMW i3 users to check battery capacity via smartphone connection during charging. Economic growth in emerging markets like India and consumer awareness of in-vehicle entertainment and information systems are fueling market expansion. The shift towards embedded solutions is expected to boost the global connected car market's growth during the forecast period.

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Research Analysis

The Connected Car market is a rapidly growing segment in the automotive industry, focusing on integrating vehicle infotainment systems with advanced technologies. Vehicle connectivity enhances performance, safety, and convenience through features like ADAS (Advanced Driver-Assistance Systems), autonomous cars, V2V (vehicle-to-vehicle) communication, and Blind Spot Detection. Network technologies such as 3G, 4G, 5G, and satellite communication enable real-time data exchange between cars and online platforms. Connected cars offer various safety and security features, including lane-keep assist, collision avoidance, and remote diagnostics. Technology companies play a significant role in providing connectivity solutions to car manufacturers and aftermarket providers. The market's growth is driven by increasing consumer demand for enhanced vehicle features and the integration of various technologies. The Connected Car market's future lies in seamless real-time communication, advanced performance, and continuous innovation.

Market Research Overview

The Connected Car market is revolutionizing the automotive industry with advanced features such as vehicle infotainment, ADAS (Advanced Driver-Assistance Systems), and autonomous cars. Vehicle-to-vehicle (V2V) communication and predictive technology are enabling real-time communication and collision warning systems, reducing vehicle downtime and enhancing safety. Electric mobility is another significant trend, with legislative policies driving its adoption. Autonomous cars, powered by sensors, processors, and high-speed network technology, are transforming the way we travel. 5G, satellite, and online platforms are key to providing fast data transfer speeds and high bandwidth for connected services. Comfort, convenience, performance, safety, and security are the main benefits for consumers. Technology companies, car manufacturers, and service providers are collaborating to offer advanced features like lane assistance, blind spot detection, and remote control access. The transition phase to connected cars involves integrating 3G, 4G, and 5G technologies, telematics, and GPS tracking into vehicles. The aftermarket is also adopting connected car technology for advanced diagnostics, fleet management, and maintenance schedule services. Smartphones and internet services are essential for seamless connectivity and remote access. The production of vehicles is being transformed with the integration of diagnostic systems and advanced sensors to monitor smoke emission, fuel consumption, and other vital parameters. Connected car services offer real-time communication, online platforms, and advanced diagnostics, reducing maintenance cost and enhancing the overall driving experience.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Connectivity
• Embedded Solutions
• Integrated Solutions
• Tethered Solutions
• End-user
• OEM
• Aftermarket
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio