Connected Cars Market Trends, Demand, Size, Growth, Insights and Market Forecast 2023-2030

Global Connected Cars Market is segmented By Type (Embedded, Tethered, Integrated), By Network (Dedicated Short-Range Communication, Cellular), By Services (Navigation, Remote Diagnostics, Collision Warning, Auto Parking, Autopilot, Vehicle Management, Cybersecurity, Others), By Hardware Type (Electronic Control Unit, Intelligent Antenna, Sensors, Keyless Entry Systems, Central Gateway, Head Unit, Telematics Control Unit), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Connected Cars Market Overview

[150 Pages Report] The Global Connected Cars Market is expected to grow at a CAGR of 17.5% during the forecasting period (2023-2030). The connected car includes the different communication devices present in the car that enable car connectivity with other devices currently in the car and allow the car to connect to external devices, networks, applications, and services. Moreover, cars with interactive advanced driver-assistance systems (ADASs) and cooperative intelligent transport systems (C-ITS) can be regarded as connected. Connected car safety applications are invented to increase situation awareness and mitigate traffic accidents through vehicle-to-infrastructure (V2I) and vehicle-to-vehicle (V2V) communications. In addition, connected cars are part of the ‘internet of things,’ a phrase that refers to everyday items connected to the internet to make life more comfortable. As well as letting you control specific items remotely, often via a smartphone app, these cars can also communicate with other products.

Connected Cars Market Summary and Scope

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Connected Cars Market Dynamics and Trends

About 94% of car crashes involve driver fault, due to which automakers reacted to this road safety challenge by creating a range of systems and technology that assist drivers for brief periods. According to the global bank, transport accounts for about 64% of global oil consumption, 27% of all energy use, and 23% of the world’s energy-related CO2 emissions. With motorization rates on the rise, the environmental impact of the sector is expected to grow dramatically. Moreover, due to the rapid growth in urbanization, cities will have home to some 6.7 billion residents by 2050, equivalent to 2/3 of the projected global population, which will directly increase the number of vehicles on the road by about 2 billion by 2050. The connected car is expected to be boosted by some features like connectivity (4G/5G), security, device & integration, pervasive access, and personalized experience is the primary factor to increase the growth of the connected car market in the forecast period. Moreover, the car's connectivity includes growth in internet and smartphone users, enabling traffic optimization, shared rides, connected life applications, and an upsurge in apps and cloud application hosting. With security features, it includes protecting passengers, economical driving, reducing traffic rule violation, and penetration of safety and security solutions in new vehicles, which is expected to boost the market of connected cars in the forecast period. Moreover, the number of connected cars' features is growing and in line with consumers’ expectations as the development cycle with cars is longer than it is in software. Moreover, connected car innovations are usually introduced step by step, often serviced by developments outside of the car industry.

However, the factors affecting the growth of connected cars involve changes in city and road tolling regulations, new young-driver monitoring programs, laws restricting the use of handheld mobile devices while driving, and flat rate data packages for mobile networks. The emergence of the connected car will most likely not happen overnight but gradually, at least as long as a large part of the car park cannot get significant software upgrades over the air.

Connected Cars Market Segmentation Analysis

By type, the market is segmented into embedded, tethered, and integrated. The embedded form segment is dominating the primary connected car market. Moreover, the growth of related embedded solutions is due to various factors such as government mandates, cost optimization of service plans, and the development of cloud-based services. By network, the market is segmented into dedicated short-range communication (DSRC) and cellular. By services, the market is segmented into navigation, remote diagnostics, multimedia streaming, social media & other apps, on-road assistance, cybersecurity, collision warning, auto parking/connected parking, autopilot, vehicle management, and others. By hardware type, the market is segmented into head unit, central gateway, intelligent antenna, electronic control unit, telematics control unit, keyless entry systems, and sensors.

The ADAS technology is based on vision/camera systems, sensor technology, vehicle data networks, and V2I or V2V systems. It includes features like adaptive cruise control, automates braking, incorporates GPS and traffic warnings, connects to smartphones, alerts the driver to hazards, and keeps the driver aware of what is in the blind spot. Furthermore, connected cars offer a more comprehensive range of communication possibilities than many other related devices and enable their users to gain real-time access to all kinds of information; they can help contact the car and the dealership to alert the emergency services you've been involved in an accident.

Connected Cars Market Geographical Share

North America dominates the market of connected cars in the forecast period. The US market's growth is boosted by developing vehicle safety and security norms, demand for vehicle-to-vehicle (V2V) connectivity technology, and the incorporation of IoT in the automotive industry. Moreover, the emergence of self-governing vehicle technology in the US connected car market is the main driver for increasing the demand for advanced related car features. In addition, the market has already witnessed the high growth of ADAS solutions, and an increase in demand for aftermarket services through the renewal of connected car service subscriptions will boost the US market in the forecast period.

The Asia Pacific is anticipated to have significant growth in the connected cars market during the forecast period. China is the fastest-growing country in this region due to the advancement of automotive technology manufacturers. The growing affordability and the connected car consumption patterns in the Asia Pacific region see a change. India is a developing technology hub with recent IoT and telematics improvements, which have improved connectivity, responses, and communications that offer infotainment, security, safety, and developed vehicle management to drivers, passengers, and commuters.

Connected Cars Companies and Competitive Landscape

The connected cars market is fragmented with the presence of regional and global players. The competitive outline lies with the increase in the regional company and growing investment in upstream applications. Continental AG, LUXOFT, Tesla, Audi AG, Robert Bosch GmbH, BMW Group, Daimler AG, Sierra Wireless, Qualcomm Technologies Inc., and Ford Motor Company are the major player in the connected cars market. The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the connected cars market globally.

BMW Group

BMW is launching the cars with operating system seven software which is eligible for the update, including the latest 1, 3, 5, 7, and X5 series on sale in international markets. Moreover, maps will use cloud computing to determine routes remotely, take live traffic data, and monitor your chosen destination's parking situation. In addition, it will also notify drivers of adverse road conditions or accident blackspots based on reports from other connected BMW cars. An on-screen range radius will also be computed for electric and plug-in hybrid vehicles, which indicates how far it's possible to travel before requiring to recharge, and maps will automatically add a new route for rapid-charging stations.

Moreover, smartphone-based unlocking will be available in new cars in which iPhone owners with the latest version of iOS will be able to unlock and start their vehicle using their smartphone and can share access with four other users. In addition, the holder of the master key may set speed and horsepower limits before giving inexperienced drivers access.

Furthermore, the intelligent personal assistant redesign will add extra motion to BMW's Siri-like voice interface with animations that react uniquely to the driver and passenger. In addition, the new home screen widget gives the assistant a more significant presence on the dashboard and gains the ability to change driving modes for the first time. The new methods feature lets you automate some features based on location, so the car could automatically unlock the driver's window when you reach a parking barrier when driving to work.