The global connected car market size in 2019 was estimated at USD 63.03 billion and is projected to hit USD 225.16 billion by 2027, with a 17.1 percent CAGR during the forecast period.
In general, factors such as advancements in technology, increased vehicle production, and increasing demand for luxury & comfort in vehicles are expected to increase the connected car market size.
TRENDS INFLUENCING THE CONNECTED CAR MARKET SIZE
Car manufacturers and service providers have developed numerous networking solutions, such as the Machine-to-Machine (M2M) network. This M2M feature in a car enables interconnectivity between two connected cars. The car has numerous sensors and processors to provide the driver with accurate and real-time information. This feature is expected to increase the connected car market size.
‘Connected Roads’ is an important trend that disrupts the voluminous take-up of connected cars. Smart roads will allow cars to communicate with traffic lights, signals, and emergency service centers via the V2X platform (vehicles to everything). Integrated with the Machine-to-Machine (M2M) network for networking and telematics, it can send real-time alerts to motorists about traffic hurdles and emergency services in the event of road accidents. Thus, the increase in connected roads will, in turn, increase the connected car market size.
The integration of augmented reality, artificial intelligence, and ADAS (advanced driver-assistance system) enhance the potential of connected cars towards autonomous vehicles.
Connected car manufacturers are going beyond pure Internet connectivity to create a competitive market. Startups and automakers are incorporating computer vision and augmented reality (AR) apparatuses into the dashboard to enhance a supplementary layer of safety and personalization to the driving experience. This integration of AR and AI is expected to fuel the growth of the connected car market size.
Advanced infotainment devices with fast wireless network connections are a key factor that is projected to boost the connected car market size over the forecast period.
Furthermore, stringent government policies for automotive safety standards and growing demand for convenient features such as multimedia streaming and remote diagnostics are key factors expected to drive the connected car market size. Connected cars can maintain a backup of where the vehicle is going, how many stops it has made, medical history, and occupant details due to vehicle telematics installation.
Factors such as constantly improving vehicle standards and high maintenance costs of advanced suspension systems are anticipated to impede the growth of the connected car market
CONNECTED CAR MARKET SHARE ANALYSIS
The Asia Pacific and Europe are the major regions dominating the connected car market share. This dominance can be attributed to various government vehicle safety regulations. In addition, ongoing R&D, network, and service provider partnerships with automotive companies in these regions are expected to accelerate the development of the connected car market during the forecast period.
It is anticipated that demand for the connected car market will grow at the highest rate in North America, especially the US, due to the increased consumer demand for advanced connected car services and the availability of smart infrastructure. Prevailing advanced traffic management and mobility management infrastructure provide compatibility for North America ‘s sophisticated connected car market adaptation.