Connected Cars Market Overview
The Global Connected Cars Market reached USD 23.5 billion in 2022 and is expected to reach USD 56.2 billion by 2031, growing with a CAGR of 18.5% during the forecast period 2024-2031. The "Internet of Things," which refers to everyday items connected to the Internet to make life easier, drives the Global Market for Connected Cars. Likewise, permitting to control exact things from a distance, frequently using a cell phone application, the vehicles can be connected with different items.
The advanced diagnostic system is a feature that is expected to propel the connected car market because it can provide vehicle data to both the customer and the dealership, allowing for earlier detection of potential issues.
Connectivity (4G/5G), security, device & integration, pervasive access and personalized experiences are some of the features anticipated to boost the global connected car market's growth over the forecast period. Due to the introduction of 5G cellular technology and the growing use of 5G in developed nations, the cellular network is expected to expand at the highest CAGR between 2023 and 2030.
Market Scope
| Metrics | Details |
| CAGR | 18.5% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2023-2030 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Network, Services, Hardware and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
To Know more Insights - Download Sample
Market Dynamics
Rising Demand for ADAS Feature
Customers are becoming more interested in autonomous and connected cars and during the forecast period, adoption is expected to increase. The penetration gap between traditional vehicles and future vehicles is expected to be reduced by the advanced driver assistance systems (ADAS) shown.
Technologies like collision warning, lane assist, blind spot recognition, and other ADAS features impact buyers’ behavior and are supposed to improve the performance of vehicles by reducing vehicle downtime and by alerting the owner of any errors in the car.
In new popular vehicles, including entry-level models, ADAS technologies are increasingly provided as standard features or as an option. As an example, information from Canalys reveals that in the first half of 2021, 63% of new cars sold in the U.S., 56% of new cars sold in Japan, 52% of new vehicles sold in Mainland China and 56% of new cars sold in Europe included lane-keep assist technology, which, when enabled, gives steering help to keep a car in its lane.
Rising Connectivity Solutions
Over time, the meaning of connectivity has evolved due to smartphones. People want to maintain their connections to the outside world while traveling. Since connectivity is a need, manufacturers are implementing connectivity features into their automobiles to boost sales. The things that computers and smartphones can perform are what consumers demand from their cars. Embedded, integrated, or tethered connection technologies can enable connectivity in a car.
The connectivity solutions can give the driver and other passengers in the car access to the Internet. Using a smartphone, modem, or networking device, an in-car hotspot can be established to give Internet access to all gadgets inside the car. Ford Motors and Google agreed to a strategic alliance in February 2021 to create connected car service applications. The collaboration benefits Ford Motor Company's connected car market.
Lack of Uninterrupted Internet Connection
The primary objective of connected cars is to maintain consumers’ connectivity to the outside world. Even when traveling, people need uninterrupted access to the Internet. Customers expect that their cars will perform functions like to those of their computers or smartphones. Due to its inability to provide a seamless Internet connection, interrupted connectivity may be a barrier for the Global Connected Cars Market.
It is primarily caused by the service providers’ network variation, which differs depending on the region. Maintaining a constant internet connection in a connected car can be pricey in areas or nations with poor internet infrastructure or high data charges. Due to the expense, some users may be driven away from utilizing linked automobile technologies.
For more details on this report - Request for Sample
Market Segment Analysis
The Global Connected Cars Market is segmented based on type, network, services, hardware and region.
Rising Demand for Embedded Solutions
Embedded type segment holds a major share of the global connected cars market during the forecast period. Government regulations, service plan cost optimization and the emergence of cloud-based services are only a few causes contributing to the expansion of suitable embedded solutions. By adopting the GSMA Embedded SIM Specification to allow vehicle connection, the automotive sector significantly contributed to enabling the next generation of connected cars.
It will enable the vehicle to be linked by several operators, improve security for various connected services and let the driver choose local operator connectivity in the country where the car is going. Due to the usage of Remote SIM Provisioning technology in the GSMA's Embedded SIM Specification, M2M device programming is possible even at a late stage.
Source: DataM Intelligence Analysis (2023)
Geographical Penetration
North America’s Early Adoption of IoT in the Automotive Sector
North America Connected Cars market has witnessed significant growth and popularity, covering more than 1/4th share in 2022. The development of vehicle safety and security standards, the demand for vehicle-to-vehicle (V2V) connectivity technology and the adoption of IoT in the automotive industry all boost the growth of the U.S. connected cars market.
Additionally, the key factor driving up demand for advanced related car features is the development of self-governing vehicle technology in the U.S. connected car market.
The cabin awareness concept technology was introduced in May 2022 by Toyota Connected North America, which directs the development of Toyota's cloud-based digital connected mobility intelligence platform. It uses millimeter-wave, high-resolution 4D imaging radar to help detect vehicle passengers, including certain types of pets.
Source: DataM Intelligence Analysis (2023)
Market Companies
The major global players include LUXOFT, Continental AG, Qualcomm Technologies, Inc., Robert Bosch GmbH, Sierra Wireless, Tesla, Audi AG, BMW Group, Daimler AG and Ford Motor Company.
COVID-19 Impact on Connected Cars Market
COVID Impact
During the COVID-19 pandemic in the first and potentially second quarter of 2020, the market for connected cars took a major hit, leading to the greatest sales loss in history. The demand for connected cars is, however, gradually increasing due to the lifting of lockdowns and the restart of operations in various businesses and manufacturing facilities, as factories have started manufacturing the items on a small scale while complying to social distancing criteria established by governmental agencies.
Along with manufacturing, connected car sales rebounded as automobile dealers reopened after an easing in lockdowns and curfews. Even after the COVID-19 pandemic, the connected car market will continue to grow owing to benefits like secure driving, remote control, auto fault diagnosis and others have more advanced technological features.
Russia- Ukraine War Impact
The Russian invasion of Ukraine has impacted various sectors and the automotive sector won't be unaffected. Many automakers have either halted shipments to Russia or ended their business there, which might have long-term implications for the market as a whole, particularly for European brands.
Hyundai and Toyota, two leading Japanese automakers in Russia that annually manufacture 80,000 vehicles, stated in 2022 that they would close their factories there.
Ford and Volkswagen have both stopped making certain components from their respective lines. Ford has considerably cut back its operations in Russia in recent years, focusing all of its efforts on commercial van production and Russian sales through a minority stake in the Sollers Ford joint venture. Ford informed the other party in its joint venture that it will cease operations in Russia until further notice.
AI Impact
AI technology in the automotive sector is growing to simplify procedures and improve overall vehicle performance, impacting the Global Connected Cars Market. Artificial intelligence has completely transformed how automobiles are designed, made and operated by utilizing the possibilities of big data, IoT, AI and ML in the automotive industry.
The multiple benefits of AI for connected automobiles are expected to positively impact market growth. The increased level of road safety is one of the primary advantages of AI for the automotive sector. Lane departure warning (LDW), autonomous emergency braking (AEB) and adaptive cruise control (ACC) are three very effective security systems that use AI to warn drivers of possible hazards, prompt them to take action and avert deadly accidents.
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
- Electronic Control Unit
- Intelligent Antenna
- Sensors
- Keyless Entry Systems
- Central Gateway
- Head Unit
- Telematics Control Unit
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- Germany
- The UK
- France
- Italy
- Russia
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Asia-Pacific
- China
- India
- Japan
- Australia
- Rest of Asia-Pacific
- Middle East and Africa
Key Developments
- In May 2022, GM and Avanci signed to a patent licensing agreement, granting the carmaker access to hundreds of crucial 2G, 3G and 4G patents for connected vehicle technology in the future.
- A new generation of advanced driver assistance systems (ADAS) for autonomous and electrified vehicles was introduced in January 2022 by Aptiv PLC. As a result of Aptiv's scalable architecture, the price of software-driven vehicles will be decreased.
- Grupo Antolin and Net4Things have decided to work collaboratively on the connected car's development starting in February 2021. Based on data analysis developed by Net4Things, Grupo Antolin aims to explore the possibilities of novel methods and commercial opportunities for connectivity and driver services.
Why Purchase the Report?
- To visualize the Global Connected Cars Market segmentation based on type, network, services, hardware and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous connected cars market-level data points with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Connected Cars Market Report Would Provide Approximately 69 Tables, 75 Figures And 201 Pages.
Services 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
