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The global connected car market size was valued at USD 42.25 billion in 2018 is projected to reach USD 142.49 billion by 2026, exhibiting a CAGR of 16.4% during the forecast period.
Nowadays, connectivity is speedily becoming a crucial part of the transportation system. The internet infiltration will primely drive the connected car industry. The IEEE 802.11p standard known for wireless access in vehicular environment (WAVE) and 5G are used for modern vehicles to get connectivity. The safety rules for data theft by governments across the world for connected cars are also encouraging the auto firms to secure and protect data from hacking and remote malfunctioning; this will also boost the demand for connected cars. The e-call system from security and safety applications that alert the event of an accident in emergency services will generally be the most common service reinforced by connected cars. The increase in the sale of passenger cars among the developing nations such as India, China, and Japan will help the growth of this market over the forecast period. Globally, advancements in the connectivity platform of the car regarding the security and protection of data from hacking will drive the automotive connected car market.
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Machine to machine (M2M) platform, this platform allows the interconnectivity of two connected cars by enabling the connected cars to exchange information and take actions without manual support. The advanced driver assistance system (ADAS) is also a prime factor for the connectivity of cars. The connected car technologies provide different services such as remote diagnostics, stolen vehicle assistance, smart SOS, internet browser, roadside assistance, wifi-hotspot, music stream, a news feed, street view, mobility management, insurance telematics, vehicle management, and parking information.
The installation cost and unavailability of seamless & uninterrupted connectivity will be a hindrance to the growth of this market. The hacking of data will be a vulnerable restraint for this market.
“Rising Adoption Of Connectivity Solutions Driving The Connected Cars Market.”
The growing inclination of consumers towards connectivity solutions is forcing manufacturers to develop advanced connecting features in vehicles. Therefore the majority of manufacturers are investing in their R&D to produce an advanced connecting system that works similar to smartphones and tablets of the user. This solution helps the user to sync their phone data with the vehicle’s connectivity system that, in turn, allows the user to make/receive calls. The newly developed solution is equipped with push to talk button on the steering wheel; this not only reads out the message/emails but also allows the user to reply to those messages/emails through text to speech technology. This advanced feature is anticipated to propel the growth of the market during the forecast period.
“Stringent Government Rules To Curb Data Theft Amid Hacking Is Also Anticipated To Propel The Growth Of The Market.”
Data has become the most critical and sensitive factor in recent years. In connected cars, user’s mobile data is synced with the car’s infotainment system, which has a high possibility of getting hacked by hackers. Connected cars can keep the backup of where the vehicle is going, how many halts it has made, medical history, and details of occupants due to the installation of vehicle telematics. Hence the government has imposed strict rules on automobile manufacturers to develop advanced connectivity solutions that would be very difficult to crack and keep the user's data safe. In recent years, the adoption of connected cars has substantially increased in Europe and North America.
“The Driver Assistance Systems Would Hold The Largest Market Share During The Given Forecast Period.”
By service type connected car market is segmented into mobility, telematics, infotainment, driver assistance. The driver assistance system is anticipated to dominate the market during the forecast period owing to its ability to provide safety to the vehicle and the occupants. Key automobile firms are investing in their R&D to equip advanced driver assistance systems in cars. The mobility connecting car segment is projected to grow at a faster rate during the forecast period.
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This service offers a flexible, comfortable, and efficient driving experience to the occupants by connecting to the external infrastructure and sensors. The system provides updates to the user regarding the amount of traffic ahead, available parking space in nearby locations, the distance of the gasoline pump, and many more.
“The Embedded Connectivity Segment Is Anticipated To Show Dominance Over The Forecast Period. ”
Based on the connectivity type, the global connected cars market is segmented into embedded, tethered, and integrated. The embedded connectivity segment holds the largest market share and will retain its position in the market over the forecast period. Owing to more reliable & faster data transfer with the use of antenna without the interference of external sources like SIM, leading to reliable safety and security solutions. The embedded connectivity is programmed to connect with the built-in modem and a subscriber identity module (SIM) and the drivers can use systems such as Apple’s car play or Android autoplay to navigate them to nearby gas stations.
Tethering connectivity enables two-way connectivity, either by built-in modem (external sim card slot) in the car or with the external modem on a user’s smartphone. For security and safety solutions, it remains unreliable solutions.
The integrated connectivity segment will show growth owing to remain up-to-date technologies as they rely on mobile technology. The integrated connectivity platform consists of integrations of cloud solutions to the connected car platform with the use of mobile. This car’s hardware solely depends upon HMI for displaying information. The BMW partnered with IBM to deliver services and integrated cloud-base tools for next generations vehicles. The integrated connectivity leads to transparency, security, and control over the data from the connected car.
“Passenger Car Is Anticipated To Dominate The Market Over The Forecast Period.”
Base on vehicle type connected car market is segmented into the passenger car, light commercial vehicle, and heavy commercial vehicle. The rising production and sales of passenger and light commercial vehicles globally are anticipated to propel connected cars market. Innovation and high investments in R&D by key players may help to maintain the dominance of passenger cars during the forecast period. Increasing collaboration of automotive firms with software companies to integrate smart features in passenger vehicles is, in turn, projected to generate revenue for new players in the market. Light commercial vehicles are expected to show lucrative growth during the forecast period owing to stringent government regulations to integrate basic safety features in-vehicle those are driver assistance systems, mobility services, and vehicle telematics.
Asia-Pacific is projected to dominate the market over the forecast period owing to increasing connectivity equipment in passenger cars. The boom in digital amenities like cybersecurity and an increase in vehicle production and sales in developing countries such as India, China, and Japan in this region will help to propel the growth in the market over the forecast period.
Europe Connected Cars market Size, 2018
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North America is expected to be the second-largest market of connected cars market owing to increasing stringency in safety regulation for security & protection and authorizations. The increase in infrastructures of communication and information technology like 5G or 4G LTE will also help this region to show growth over the forecast period. The advancement in the technology of connected car devices by major manufacturing industries in this region towards protection and security will also help this market to grow in this region.
Europe is expected show the lucrative growth of connected cars market over the forecast period. The established market players in this region engross in research & development activities for the advancement of connected car technology by means of its potential application will help this region to propel the growth over the forecast period in the connected car market.
“Market players like Harman International would ensure to strengthen their market position by venturing into different regions across the globe.”
The market is dominated by some leading companies due to their critical strategic decisions, robust product portfolio, and dominance of market share. These include a group of 4-5 key companies with more extensive geographic presence and persistent R&D, resulting in secure regulatory approvals.
The security and protection for a connected system and new product launches based on advanced technologies will lead to an increase in the global connected car market growth.
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Along with this, the report provides an elaborative analysis of the global market dynamics and competitive landscape. Various key insights presented in the report are recent industry developments such as mergers & acquisitions, the regulatory scenario in crucial countries, technological advancements in safety features, key strategies adopted by market leaders, competitive landscape, and company profiles.
Volume (Million Units) & Value (USD Billion)
By Service Type
By Connectivity Type
By Vehicle Type
Fortune Business Insights says that the global connected car market size was valued at USD 42.25 billion in 2018 is projected to reach USD 142.49 billion by 2026, exhibiting a CAGR of 16.4% during the forecast period.
Rising at a CAGR of 16.4%, the market will exhibit steady growth in the forecast period (2019-2026)
The service type segment is expected to be the leading segment in this market during the forecast period.
Increased internet penetration and new safety rules by the government regarding the protection and security of data will drive the growth of the market.
TomTom International B.V, Harman International, and AT&T are the top players in the market.
Asia-Pacific is expected to hold the highest market share in the market.
Expanding automotive integration market, stringent government regulation for data theft, and new product launches would drive the adoption of connected cars.
The increasing consumer market for personalized traffic information and advanced driving functions are the hyper-market trends of the automotive seatbelt and airbag market.
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