Connected Cars Market: Current Analysis and Forecast (2021-2027)

Report Description

The connected cars market is expected to register a CAGR of approx. 18% over the period of 2022-2028. A connected car provides connectivity on wheels by providing comfort, convenience, performance, safety, and security, as well as powerful network technology. This allows the driver to connect to online platforms and communicate in real time. Through the network connection, it can share content with a variety of devices both inside and outside the car. The data from the vehicle is shared using RADAR, LiDAR, and advanced sensors. Car manufacturers have developed advanced connectivity solutions such as vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) systems in recent years. Vehicles that are connected to various devices help to improve their safety by providing the driver with real-time data about the vehicle’s surroundings. The primary goal of connected vehicle adoption is to avoid collisions, reduce fatalities, and improve vehicle management efficiency. The growth of the connected cars can be attributed to increase in consumer demand for connectivity solutions across the globe which boosting the adoption of inorganic growth strategies among key industry players around the globe. For instance, in November 2021, continental developed a technology solution for highly automated driving: an intelligent software that enables complex driving maneuvers autonomously. The Next Generation Driving Planner is an innovative software solution that enables highly automated driving from Level 3. This means vehicles can master certain driving tasks independently and without driver intervention. The software developed by Continental represents a significant leap forward in driving intelligence. Owing to these glaring statistics increase in demand for the technological advance cars are contribute to the growth of the market in the forthcoming period as well. Furthermore, the connected cars market is anticipated to grow on account of rapid technological advancements and the increase in dependency on technology.  However, some of the restraints in the market including the interrupted connectivity due to fail in internet services are impeding the growth of this market all over the world.

Continental AG, Hyundai Motor Co, Ford Motor Company, VOLKSWAGEN GROUP, AT&T Inc, TomTom NV, Mercedes-Benz Group AG, General Motors Company, Bayerische Motoren Werke AG, Robert Bosch GmbH are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst technology, the 4G category accounted for the significant share in the market in 2020”

Based on the technology, the connected cars market is segmented into 3G, 4G-LTE, and 5G. The 4G segment accounted for a significant market share and it is estimated that it will grow rapidly during the projected timeframe. Several telecommunications firms are working on 4G networks to improve communication between connected vehicles and external devices.

“Amongst connectivity solution, the integrated category is expected to witness considerable CAGR during the forecast period”

Based on the connectivity solution, the market is fragmented into integrated, embedded, and tethered. The integrated segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. When compared to embedded and tethered systems, these systems offer unlimited data sharing possibilities and are less expensive. Key OEMs from around the world have collaborated with a variety of key players to develop advanced integrated systems for connected vehicles that provide consumers with seamless connectivity.

“Amongst application, the driver assistance category is expected to witness considerable CAGR during the forecast period”

Based on the application, the market is fragmented into mobility management, telematics, infotainment, and driver assistance. The driver assistance segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. The advanced driver assistance system consists of technologically advanced features that improve vehicle safety, such as adaptive cruise control, lane keep assist, 360 view camera, park assist, and so on. Globally, numerous governments have imposed strict safety standards on automakers.

“Amongst sales channel, the OEMs category is expected to witness considerable CAGR during the forecast period”

Based on the sales channel, the market is fragmented into OEMs and aftermarkets. The OEMs segment grabbed a considerable market share, and it is expected to grow at a significant CAGR during the forecast period. The dominance of OEMs is anticipated to be aided by growing technological advancements such as uninterruptible connectivity, cybersecurity, and the development of driverless cars integrated with highly secure software during the forecast period

“Asia Pacific to witness significant growth during the forecast period”

For a better understanding of the market dynamics of the connected cars market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, India, South Korea, Japan, and Rest of APAC), Rest of World has been conducted. Asia Pacific constitutes a highest CAGR in the connected car market owing to the growing adoption of high-end and cost-effective connectivity solutions Furthermore, consumer demand for in-vehicle embedded connectivity systems, as well as the growing trend toward connected cars, have fueled the growth of connected vehicles in this region.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

Global connected cars market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

You can also purchase parts of this report. Do you want to check out a section wise
price list?

Get in touch with team

Research Methodology

Research Methodology for the Global Connected Cars Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the global connected cars market were the three major steps undertaken to create and analyze the adoption of connected cars in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global connected cars market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the connected cars market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the connected cars market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as the technology, connectivity solution, application, and sales channel. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the connected cars market. Further, we conducted factor analysis using dependent and independent variables such as an increase in consumer demand for connectivity solutions, etc. globally. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the connected cars market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global connected cars market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the connected cars market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global connected cars market in terms of solutions offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the global connected cars market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of technology, connectivity solution, application, and sales channel in the global connected cars market.

The main objective of the Global Connected Cars Market Study

The current & future market trends of the global connected cars market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the connected cars market in terms of Value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of technology, connectivity solution, application, and sales channel.
• Define and analysis of the regulatory framework for the connected cars market industry.
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the connected cars market for the major region.
• Major countries of regions studied in the report include Asia Pacific, Europe, North America, and Rest of the world.
• Company profiles of the connected cars market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry

You can also purchase parts of this report. Do you want to check out a section wise
price list?

Get in touch with team