The connected car M2M connections and services market in the US to grow at a CAGR of 28.62% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the connected car M2M connections and services market in the US for 2016-2020.
The connected car market has been fueled by factors such as rising demand for constant connectivity, increased dependency on technology, and the growing number of tech-savvy customers.
Over the years, automotive manufacturers and service providers have been developing connectivity solutions such as M2M connectivity platforms. M2M connectivity enables the interconnectivity between two vehicles. Innumerable sensors and processors integrated into a car provide accurate and real-time information about the surrounding environment to the driver.
A trend which is expected to have a big impact is the deployment of V2X technology in vehicles. V2V technology has already gained importance in the automotive industry as it enables vehicles to send or receive any appropriate information during transit. As of 2015, V2X technology is gaining momentum in the connected car segment. This technology allows a vehicle to communicate, through the Internet, with any entity or infrastructure such as another vehicle with connected devices, vehicle management system provider, smart parking solutions installed in a locality, on-road sensors for turning and speed breakers.
According to the report, a key growth driver is the availability of embedded telematics solutions. The integrated telematics penetration is increasing YoY in the US. This penetration is growing due to the growing demand for smartphones and the regulations for the safety aspects. In the age of exponential technological advancements, basic delivery of safety features in vehicles does not acquire any competitive edge.
Further, the report states that one challenge that could curtail market growth is the high cost of connected car M2M equipment and services.
To calculate the market size, the report considers the following:
- Service revenue generated from OEMs and aftermarket equipment; for instance, the revenue includes the per year service revenue of Audi connect, not the device or module cost installed in the vehicle - Revenue from infotainment, navigation, and telematics services; other services include vehicle management, on-drive management, safety and security, and driver assistance. - Data analytic services and automotive apps
The market is divided into the following segments based on application: