The global connected car market is projected to reach USD 166.0 billion by 2025, from USD 53.9 billion in 2020.
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 an upsurge in the 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 an increase in the 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 an 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.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Opportunities in the Connected Car Market 4.2 Connected Car Market, by Region 4.3 Connected Car Market, by Form 4.4 Connected Car Market, by Service 4.5 Connected Car Market, by End Market 4.6 Connected Car Market, by Hardware 4.7 Connected Car Market, by Transponder 4.8 Connected Car Market, by Network
5 Market Overview 5.1 Introduction 5.2 Years Considered for the Study 5.3 Package Size 5.4 Market Dynamics 5.4.1 Drivers 184.108.40.206 Increased Demand for Enhanced User Comfort, Safety, and Convenience 220.127.116.11 Reduction in Fuel Consumption 5.4.2 Restraints 18.104.22.168 Lack of Infrastructure for Proper Functioning of Connected Cars 5.4.3 Opportunities 22.214.171.124 Emergence of Various Technologies Such as 5G and Ai 126.96.36.199 Increasing Popularity of Automation in the Automotive Sector 188.8.131.52 Developments of Ride Sharing and Mobility Services 5.4.4 Challenges 184.108.40.206 Cybersecurity 5.5 Revenue Missed: Opportunities for Connected Car Manufacturers 5.5.1 Revenue Shift Driving Market Growth 5.6 Connected Car Market, Scenarios (2018-2027) 5.6.1 Connected Car Market, Most Likely Scenario 5.6.2 Connected Car Market, Optimistic Scenario 5.6.3 Connected Car Market, Pessimistic Scenario 5.7 Product Matrix
6 Connected Car Market, by Service 6.1 Introduction 6.1.1 Research Methodology 6.1.2 Assumptions 6.1.3 Industry Insights 6.2 Operational Data 6.2.1 Features of Various Major Connected Car Services Offered by OEMs 6.3 Navigation 6.3.1 Growing Demand for Route Tracking and Real-Time Traffic Monitoring Will Boost the Market 6.4 Remote Diagnostics 6.4.1 Need for Reducing Vehicle Downtime and Maintenance Costs Will Fuel the Market 6.5 Multimedia Streaming 6.5.1 Increase in Demand for Entertainment Features to Drive the Market 6.6 Social Media & Other Apps 6.6.1 Extensive Usage of Social Media and Other Apps to Drive the Market 6.7 Ota Updates 6.7.1 Easy Deployment of Software Updates Eliminate the Risk of Recall and Offer Cost Reduction 6.8 On-Road Assistance 6.8.1 Need for Assistance while Driving in Terms of Breakdown and Other Vehicle Health Issues Will Boost the Market 6.9 E-Call & Sos Assistance 6.9.1 Demand for Emergency Services and Safety Regulations Will Drive the Market 6.10 Cybersecurity 6.10.1 Demand for Data Privacy and Security of Information Will Drive Demand 6.11 Remote Operation 6.11.1 Wireless Operations Through Smartphones to Drive Demand 6.12 Collision Warning 6.12.1 Growing Adas Features to Drive the Market 6.13 Auto Parking/Connected Parking 6.13.1 Need for Improved Utilization of Available Parking Spaces Will Drive the Market 6.14 Autopilot 6.14.1 Connected Autonomous Cars to Drive the Market 6.15 Home Integration 6.15.1 Use of IoT in Homes Wil Drive the Market 6.16 Vehicle Management 6.16.1 Increase in Demand for Shared Mobility Will Drive the Market 6.17 Asset Tracking 6.17.1 High Demand for Security and Tracking Facilities by Fleet Operators to Drive the Market
7 Connected Car Market, by Form Type 7.1 Introduction 7.1.1 Research Methodology 7.1.2 Assumptions 7.1.3 Industry Insights 7.2 Operational Data 7.2.1 Features of Various Connected Car in Terms of Connectivity Form 7.3 Embedded 7.3.1 Reduction in Prices for Service Plans and Telematics Regulations Will Drive Market 7.4 Tethered 7.4.1 Offering of Basic Internet-Based Infotainment Features Would Restrict the Market 7.5 Integrated 7.5.1 Increase in Risks of Driver Safety Will Lead to Slow Growth of the Market
8 Connected Car Market, by End Market 8.1 Introduction 8.1.1 Research Methodology 8.1.2 Assumptions 8.1.3 Industry Insights 8.2 Original Equipment Manufacturer (OEM) 8.2.1 Increase in Demand for Safety and Security Services Will Drive the Oem Market 8.3 Aftermarket 8.3.1 Customer Willingness to Pay for Comfort and Safety Services Will Fuel the Aftermarket
9 Connected Car Market, by Hardware 9.1 Introduction 9.1.1 Research Methodology 9.1.2 Assumptions 9.1.3 Industry Insights 9.2 Head Unit 9.2.1 Infotainment Systems Will Drive the Head Unit Market for Connected Cars 9.3 Central Gateway (Cgw) 9.3.1 Transformation in Vehicle Network Architecture Will Drive the Market 9.4 Intelligent Antenna 9.4.1 Demand for Small and Powerful Antennas Will Boost the Intelligent Antenna Market 9.5 Electronic Control Unit (Ecu) 9.5.1 Demand for High Capacity Ecu Will Drive the Market in Future 9.6 Telematic Control Unit (Tcu) 9.6.1 E-Call Mandate in Europe and Safety and Security Regulations Elsewhere Will Boost the Tcu Market 9.7 Keyless Entry Systems 9.7.1 Need for Comfort and Convenience Will Drive the Keyless Entry System Market 9.8 Sensors 9.8.1 Demand for Adas and Autonomous Features Will Drive the Sensor Market
10 Connected Car Market, by Transponder 10.1 Introduction 10.1.1 Research Methodology 10.1.2 Assumptions 10.1.3 Industry Insights 10.2 Onboard Unit 10.2.1 Demand for Safety and V2V Communication Will Drive the Market 10.3 Roadside Unit 10.3.1 Smart Cities Will Drive the Roadside Unit Market
11 Connected Car Market, by Network 11.1 Introduction 11.1.1 Research Methodology 11.1.2 Assumptions 11.1.3 Industry Insights 11.2 Operational Data 11.3 Dedicated Short Range Communication (DSRC) 11.3.1 V2X Communication Will Drive the Dsrc Market 11.4 Cellular 11.4.1 Advent of 5G Network Will Drive the Cellular Market 220.127.116.11 4G 18.104.22.168 5G
12 Connected Car Market, by Region 12.1 Introduction 12.1.1 Research Methodology 12.1.2 Assumptions/Limitations 12.1.3 Industry Insights 12.2 Asia-Pacific 12.3 Europe 12.4 North America 12.5 Rest of the World
13 Competitive Landscape 13.1 Overview 13.2 Market Ranking Analysis 13.3 Competitive Leadership Mapping 13.3.1 Terminology 13.3.2 Visionary Leaders 13.3.3 Innovators 13.3.4 Dynamic Differentiators 13.3.5 Emerging Companies 13.4 Competitive Leadership Mapping - Connected Car Solution Providers 13.4.1 Strength of Product Portfolio 13.4.2 Business Strategy Excellence 13.5 Competitive Leadership Mapping: Connected Car Manufacturers 13.5.1 Strength of Product Portfolio 13.5.2 Business Strategy Excellence 13.6 Right to Win 13.7 Competitive Scenario 13.7.1 New Product Developments/Launches 13.7.2 Expansions 13.7.3 Acquisitions 13.7.4 Partnerships/Contracts
14 Company Profiles 14.1 Hardware Providers 14.1.1 Continental 14.1.2 Bosch 14.1.3 Harman 14.1.4 Visteon 14.2 Software Providers 14.2.1 Airbiquity 14.2.2 Cloudmade 14.2.3 Intellias 14.3 Oem Manufacturers 14.3.1 Tesla 14.3.2 Ford Motor Company 14.3.3 Audi 14.4 Network Providers 14.4.1 AT&T 14.4.2 Qualcomm 14.4.3 Verizon Communication 14.5 Iot/Mapping Solution Providers 14.5.1 Tomtom 14.5.2 Sierra Wireless 14.6 Others 14.6.1 Panasonic 14.6.2 Tech Mahindra 14.6.3 Microsoft Azure 14.6.4 Zubie 14.6.5 Bmw 14.6.6 Daimler 14.6.7 Telefonica 14.6.8 Luxoft
15 Recommendations 15.1 Asia-Pacific Will Be the Major Market for Connected Car Market 15.2 Embedded Form of Connectivity Can Be a Key Focus for Manufacturers 15.3 Conclusion