The global connected car market is projected to reach USD 57.6 billion by 2026 from an estimated USD 24.0 billion in 2021, at a CAGR of 19.1% from 2021 to 2026. All major carmakers, such as Ford, BMW, Audi, Volvo, Hyundai, and Toyota, offer some form of connectivity in their vehicles.
Connected cars ease connectivity on wheels, offering comfort, convenience, performance, safety, and security along with powerful network technology.This enables the driver to connect with online platforms, thereby facilitating real-time communication.
The rise in consumer demand for connectivity solutions, a surge in the need for constant connectivity, an increase in the dependency on technology, and the growing tech-savvy population are the key factors contributing to the growth of the connected car market. However, the lack of proper communication infrastructure in developing countries will restrict the connected car market growth in the coming years.
Demand for high capacity ECUs due to an increase in electronic components in a connected car is expected to drive the ECU hardware market during the forecast period
The ECU plays a critical role in the connected car system and helps control different electronic systems of connected cars.The data generated through the hardware components are integrated into the ECU and transmitted to the cloud platform.
Due to an increase in the number of electronics systems, the number of ECUs has increased, and thus, the demand for ECUs is growing in the connected car market.However, and the increasing number of ECUs per vehicle reduces efficiency, various automotive giants are collaborating with OEMs to consolidate ECUs without affecting the functionalities.
The key purpose of ECU consolidation is to converge various ECUs into a single, advanced ECU that can control multiple hardware functions.
The aftermarket segment is expected to register the highest CAGR within the connected car market
The demand for connected car services in the aftermarket is expected to increase in the near future due to technological advancements and an increase in demand for safety and comfort features in cars.Also, launches of aftermarket connected car platforms are expected to drive aftermarket.
For instance, in 2017, HARMAN announced an Aftermarket Connected Automotive Platform that can support connected applications and transform any existing vehicle into a smart connected car, including those lacking pre-installed connectivity capabilities. The new solution is available to automotive OEMs, dealers, specialty automotive retailers, and mobile carriers.
The Asia Pacific market is projected to register the highest CAGR during the forecast period
The Asia Pacific connected car market is projected to register the highest CAGR during the forecast period.Japan is one of the major markets as the penetration of connected cars is at a mature stage.
One of the key drivers for the Asia Pacific connected car market is the increased demand for infotainment and navigation services, particularly in China, Japan, India, and South Korea.The tech-savvy population in these countries demands a better and connected driving experience.
The growing popularity of premium and luxury vehicles is also expected to drive the growth of the connected car market in this region.The penetration of connected cars is at a nascent stage in countries such as India and Thailand.
With the deployment of 5G infrastructure, the popularity of connected car services is expected to grow.
In-depth interviews were conducted with CEOs, marketing directors, other innovation and technology directors, and executives from various key organizations operating in this market.
• By Stakeholder: Demand Side- 40%, Supply Side-60%
• By Designation: C Level - 40%, D Level - 35%, and Others - 25%
• By Region: North America - 30%, Europe - 40%, Asia Pacific - 20%, and Rest of the World – 10%
The connected car market comprises major manufacturers such as Continental (Germany), Bosch (Germany), HARMAN (US), Airbiquity (US), and Visteon (US).
The study segments the connected car market and forecasts the market size based on service for ICE and EV (navigation, remote diagnostics, multimedia streaming, social media & other apps, OTA updates, on-road assistance, eCall & SOS assistance, cybersecurity, remote operation, collision warning, auto parking/connected parking, autopilot, home integration, vehicle management, asset tracking), form type (embedded, tethered, and integrated), Network (DSRC and cellular), end market (OEM and aftermarket), transponder (onboard unit and road side unit), hardware (head unit, central gateway, intelligent antenna, electronic control unit, telematics control unit, keyless entry systems, and sensors), and region (North America, Europe, Asia Pacific, and RoW).
Key Benefits of Buying the Report:
The report will help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall connected car market and the subsegments.This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them information on key market drivers, restraints, challenges, and opportunities.