Connected Car Market to Garner $156.1 billion by 2023 at 20.7% CAGR, Says P&S Intelligence
The global connected car market size was valued at $51,910.9 million in 2017 and is projected to reach $156,145.9 million by 2023, witnessing a CAGR of 20.7% during the forecast period. The demand for enhanced driving experience, growing concern for safety and security, and introduction of internet of things (IoT) in automotive industry are the major factors driving the market.
On the basis of products and services, the connected car market is categorized into fleet manager, wireless and cellular modules, OEM services, aftermarket services, processors, and sensors. Among these, the wireless and cellular modules category is expected to be the fastest growing category during the forecast period. The market for this category is anticipated to grow due to rising demand for better operational efficiency in vehicles, increasing usage of IoT based services in vehicles, improved vehicle tracking and road safety, and enhanced vehicle management.
Among all the technologies available in the connected car market, the 4G/LTE technology is expected to witness the fastest growth in the market during the forecast period. The market for this category is predicted to grow owing to factors, such as increasing demand for safety and performance through real-time data delivery to the vehicle, rise in demand for reduced driving time and enhanced experience, and better coverage enhancement technologies for the vehicle.
Based on connectivity, the connected car market is categorized into integrated, embedded, and tethered. Of the three, the integrated connectivity category generated the largest revenue during the historical period, accounting for more than 40% market share in terms of value in 2017. Also, the category is forecasted to dominate the market in the coming years, owing to increasing demand for high resolution human machine interface (HMI) used in smartphones connected to these cars, improved vehicle management system, and improved communication and information sharing within and outside the vehicle’s environment.
Globally, Asia-Pacific (APAC) connected car market is expected to witness the fastest growth during forecast period. The market in the region is predicted to grow significantly, owing to factors such as increase in number of connected car devices used in passenger cars and upsurge in the need for digital services, like cybersecurity and related updates. This regional market is expected to witness an increase in number of strategic alliances between automotive and non-automotive companies during the forecast period to create an improved communication infrastructure, in addition to meet the government regulations for vehicle data security.
Connected Car Market Dynamics
Driver
The growing concern for safety and security among the original equipment manufacturers (OEMs), end users, and governments across the world is one of the major factors driving the connected car market. The technologies such as advanced driver-assistance system (ADAS), automatic braking, and lane assist/lane departure warning system are significantly contributing toward enhancing the driving experience, thus making driving experience safer than ever. Such technologies help in reducing traffic rule violation and help to prevent road accidents. Also, the introduction of security and safety solutions in vehicle models launched over the recent years is on the rise. Stringent safety regulations, coupled with end user preference for safety features, are expected to drive the ADAS and IoT market, in turn driving the connected car market during the forecast period.
Request to Get the Sample Report@ http://bit.ly/2QUN68F
Opportunity
The developing economies of the world, such as China, India, and Indonesia, present lucrative opportunities for the key players in the connected car market. These regions have witnessed a significant rise in the living standards of their inhabitants, owing to increase in their disposable income. The inhabitants are ready to spend a significant share of their income towards improvements in their lifestyle, including products based on the latest technologies. The growth opportunities of the market are very less explored or unexplored in these regions.
In 2017, China approximately had 12 million cars with on road with in-car connectivity and internet access, and it is forecasted that more than 45 million people will start using connected cars by 2023. This growing demand has increased the uptake of connected vehicles in the region. The consumers are ready to pay for the sophisticated technology; thus, it can be said that the developing economies present lucrative growth opportunities for the key players in the connected car market, and these regions have potential to grow as one of the largest markets for these cars.
Connected Car Market Competitive Landscape
To gain more share in the market, the companies are focusing on improving their existing connected car offerings, and are working in collaboration with other market leaders in the connected car market ecosystem to bolster their market reach. The major players in the industry are Continental AG, Delphi Technologies PLC, DENSO Corporation, Robert Bosch GmbH, ZF Friedrichshafen AG, Harman International Industries Inc., Valeo SA, and Autoliv Inc.
