Global $215 Billion Connected Car Market Forecast to 2027: Opportunities in Technologies Such as 5G and AI
DUBLIN, Dec. 5, 2019 /PRNewswire/ -- The "Connected Car Market by Service (OTA Update, Navigation, Cybersecurity, Multimedia Streaming, Social Media, e-Call, Autopilot, Home Integration, & Others), Form, End Market (OE, Aftermarket), Network, Transponder, Hardware, and Region - Global Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
Increase in demand for smartphone services and connectivity solutions in vehicles is the significant factor for the growth of the connected car market globally
The global connected car market is projected to reach USD 212.7 billion by 2027, from an estimated USD 42.6 billion in 2019, at a CAGR of 22.3%. All car makers such as Ford, BMW, Audi, Volvo, Hyundai, and Toyota offer some connectivity in their vehicles.
Connected cars ease connectivity on wheels, offering comfort, convenience, performance, safety, and security along with powerful network technology. This enables the driver to connect with online platforms, thereby facilitating real-time communication. The rise in consumer demand for connectivity solutions, surge in need for constant connectivity, increase in dependency on technology, and upsurge in tech-savvy population are the key factors that contribute toward the growth of the connected car market. However, lack of proper communication infrastructure in developing countries will restrict the connected car market in the coming years.
Demand for high capacity ECUs due to an increase in electronic components in a connected car is expected to drive the ECU hardware market during the forecast period
The ECU plays a critical role in the connected car system and helps control different electronic systems of connected cars. The data generated through the hardware components are integrated into the ECU and transmitted to the cloud platform. Due to increase in number of electronics systems, the number of ECUs has increased, and thus, the demand for ECUs is growing for the connected car market.
However, the increasing number of ECUs per vehicle reduces efficiency, and various automotive giants are collaborating with OEMs to consolidate ECUs without affecting the functionalities. For instance, in 2017, Sasken Technologies Ltd. demonstrated its hypervisor-based consolidator that virtualizes infotainment and cluster systems. The key purpose of ECU consolidation is to converge various ECUs into a single, advanced ECU that can control multiple hardware functions.
The aftermarket segment is expected to grow at the highest CAGR rate within the connected car market
The demand for connected car services in the aftermarket is expected to increase in the near future due to technological advancements and increase in demand for safety and comfort features in cars. According to a survey, the willingness to pay a subscription fee for connected services went from 21% in 2014 to 32% in 2015. Social media, live traffic, weather updates, and automatic emergency calling are the primary services for which customers are willing to pay monthly.
The North American market is expected to register the fastest growth during the forecast period
The North American connected car market is estimated to be the fastest. In North America, the US and Canada are economically stable and have a higher standard of living and disposable income, which leads to the demand for high-end connected car services and connectivity solutions. Infrastructure availability in the US attracts the global OEMs and Tier I to test and develop fully connected autonomous vehicles, and supportive government policies help them test vehicles on the road.
As people have high standards of living and disposable income in these countries, they would like to spend more on safety and comfort features. The demand for self-driving cars in the US is resulting in OEMs introducing advanced connected car technologies that are expected to drive the North American connected car solution and services market.
The connected car market comprises major manufacturers such as Continental (Germany), Bosch (Germany), HARMAN (US), Airbiquity (US), and Visteon (US), among others.
Market Dynamics
Drivers
- Increased Demand for Enhanced User Comfort, Safety, and Convenience
- Reduction in Fuel Consumption
Restraints
- Lack of Infrastructure for Proper Functioning of Connected Cars
Opportunities
- Emergence of Various Technologies Such as 5g and Ai
- Increasing Popularity of Automation in Automotive Sector
- Developments of Ride Sharing and Mobility Services
Challenges
- Cybersecurity
Revenue Missed: Opportunities for Connected Car Manufacturers
- Revenue Shift Driving Market Growth
Connected Car Market, Scenarios (2018-2027)
Company Profiles
Hardware Providers
- Continental
- Bosch
- Harman
- Visteon
Software Providers
- Airbiquity
- Cloudmade
- Intellias
OEM Manufacturers
- Tesla
- Ford Motor Company
- Audi
Network Providers
- At&T
- Qualcomm
- Verizon Communication
Iot/Mapping Solution Providers
- Tomtom
- Sierra Wireless
Others
- Panasonic
- Tech Mahindra
- Microsoft Azure
- Zubie
- BMW
- Daimler
- Telefonica
- Luxoft
For more information about this report visit https://www.researchandmarkets.com/r/6mmvws
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