Connected Car Market Size, Share & Trends Analysis Report By Application (Vehicle Management, Driver Assistance, Mobility Management, Safety, Entertainment, Others), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global connected car market size was valued at USD 84.72 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.4% from 2023 to 2030. Technological proliferation and increased disposable incomes across regions are expected to drive the global market for the next seven years. There have been significant advances in telecommunication technology over the past few years. These advances have offered the population a new level of connectedness. With the development of connected car concepts, vehicle telematics and infotainment technology have progressed to offer HD touch screens, navigation tools, varied applications, and high-speed internet on the go.

The industry is expected to get a major push from governments across the nations. The U.S. Department of Transportation, in association with the National Highway Traffic Safety Administration, announced plans for a regulatory proposal that made it mandatory for auto manufacturers the installation of vehicle-to-vehicle communication devices in every automobile they produce in the coming years.

Issues pertaining to safety and security, such as unauthorized access to multiple automobile applications or breaking into the in-vehicle connectivity system, can restrain the market. Moreover, the unavailability of seamless internet connectivity across regions may challenge the connected car industry growth.

Connected cars provide performance, comfort, safety, security, and connectivity. Various online platforms enable drivers and passengers to communicate in real-time on the go with advanced technology. In the coming years, consumer demands, the constant need for connectivity, an increased dependency on technology, and the growth of tech-savvy people will likely fuel industry growth. In addition, telematics mandates (existing and anticipated) from various governments are also critical drivers of the globally market.

Network service providers like Verizon and AT&T provide connectivity technology and utilities to end users and automobile manufacturers. These connectivity devices and technologies transform an ordinary car into a connected car. Application service-providing companies such as Microsoft, TomTom, Intel, Google, and Apple, provide applications, software, and platforms required to run connected car services.

The connected car market shows a promising picture for the future growth of car-embedded technology. This user-friendly technology has increasingly become popular among the end-users. Technological advancements leveraged by automakers enable customers to remotely connect to their cars. In addition to car manufacturers, OEMs also contribute to market expansion. Automobile manufacturers use the services and products provided by the OEMs, which include sensors, processors, fleet managers, wireless, cellular models, and aftermarket services.

Connected car systems can be a potential solution for these problems, which will further help in enhancing the driving experience. Drivers are seeking smarter forms of transportation that can provide them with real-time data on weather conditions, traffic jams, roadblocks, and vacant parking spaces. Connected car systems can be a potential solution for these problems which will further help in enhancing the driving experience. Based on its advantages, the impact of this factor is expected to increase in the future.

Application Insights

Based on application, the market is segmented into vehicle management, driver assistance, mobility management, safety, entertainment, and others. The driver assistance segment accounted for the largest revenue share of 36.1% in 2022 and is estimated to register the fastest CAGR of 15.6% over the forecast period. Driver assistance includes several advanced technologies that help improve the vehicle's performance. Systems such as parking assist and cruise control autonomously steer the vehicle are increasingly being introduced across all car segments, thus ensuring driver comfort and convenience.

In addition, the growing demand for connected and intelligent vehicles, coupled with advancements in connectivity technologies such as 5G, has further boosted the driver assistance segment. Connected cars can leverage cloud-based services, real-time data analysis, and vehicle-to-vehicle communication to provide advanced driver assistance features, such as real-time traffic information, remote diagnostics, and predictive maintenance alerts.

The safety segment is estimated to grow significantly over the forecast period. The rise of autonomous driving technologies has also contributed to the growth of the safety segment in the market. Autonomous vehicles have many sensors and connectivity capabilities, enabling them to gather real-time data and make proactive decisions to avoid accidents. Furthermore, there is a growing concern for road safety and a need to reduce accidents and fatalities. Governments and regulatory bodies promote adopting connected car technologies to enhance road safety.

Mobility management involves implementing systems that allow drivers to reach their desired destinations most efficiently, ensuring their safety, cost-effectiveness, and optimal fuel usage. Safety technologies encompass various features, such as providing drivers with external alerts about hazardous weather and road conditions and incorporating internal autonomous collision prevention and emergency capabilities within vehicles.

Entertainment has been a basic need in virtually every vehicle since its introduction. Auto manufacturers increasingly install features such as smartphone interfaces, Wi-Fi hot spots, internet, social media access, and advanced mobile office platforms.

Vehicle management systems encompass a range of features that empower car owners to minimize operational expenses, enhance convenience, and streamline maintenance. These functionalities include keyless access and ignition, onboard diagnostics providing information on vehicle status, scheduling services, and receiving updates.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 39.7% in 2022. The presence of major automobile manufacturers and technology providers has led North America to dominate the industry. To compete with technological giants such as Apple Inc. and Google Inc., automobile manufacturers must develop innovative capabilities and cultural shifts.

Moreover, the strong infrastructure for wireless communication and the widespread availability of high-speed internet in North America have supported the growth of connected cars. These infrastructural advancements enable seamless connectivity and data transfer between vehicles and external networks, facilitating the functioning of various connected car features.

Asia Pacific is expected to register the fastest CAGR of 15.3% over the forecast period. Increasing smartphone penetration, deployment of high-speed internet services, and declining average selling price in the region are expected to push the sales of such smart vehicles.

Furthermore, rising consumer disposable income is expected to propel market demand. Middle-class households and rising income levels have increased aggregate disposable income in developing countries. It has led to a rise in spending on advanced high-end and luxury cars, which may catapult demand over the coming years. These factors are expected to benefit the connected cars industry as manufacturers have started to target the middle class, young and high-income groups residing in urban areas by introducing such advanced connectivity technologies in budget and small cars segments. Strong economic growth, especially in countries such as China, India, and Brazil, is expected to contribute to the increasing usage of such advanced technology.

Key Companies & Market Share Insights

The market is highly competitive, and the players are undertaking strategies such as forecast launches, acquisitions, and collaborations to increase their global reach. For instance, in February 2023, Hyundai Motor America launched Bluelink+, a connected car services program. Its service offerings include automatic collision notifications, emergency assistance, and enhanced roadside assistance, ensuring prompt response and support in critical situations. Additionally, Bluelink+ includes car care functionalities, such as monthly vehicle health reports and maintenance alerts, which enable owners to proactively manage their vehicle's condition and reduce long-term maintenance expenses. Some prominent players in the global connected car market:

• ALE International, ALE USA Inc.

• Apple Inc.

• AT&T Intellectual Property

• AUDI AG

• BMW AG

• Aptiv

• Ford Motor Company

• General Motors

• Google LLC

• NXP Semiconductors

Recent Developments

• In April 2023, CEREBRUMX announced a strategic investment from BlackBerry Limited to expand its portfolio of connected car data products. This agreement enables CerebrumX to broaden its data gathering and analyzing services while utilizing BlackBerry's cloud-connected automotive AI platform, IVY. CerebrumX can perform intense data processing instantly at the car edge by integrating BlackBerry IVY, providing real-time insights for automakers and other ecosystem suppliers.

• In March 2023, Aeris acquired Ericsson's IoT Accelerator and Connected Vehicle Cloud businesses and related assets. This acquisition strengthens Aeris' Connected Vehicle business, allowing them to assist numerous Automotive OEMs in deploying, monetizing, and advancing their connected vehicle programs. By merging these businesses, Aeris has created one of the largest IoT-first connectivity management service platforms globally. Together with its network of partners, Aeris aims to deliver innovative IoT solutions that drive digital transformation, enhance operational efficiency, and enhance customer satisfaction for enterprises worldwide.

• In January 2023, EPAM Systems, in partnership with Renesas Electronics Corporation, launched the "AosEdge" platform, a vehicle-to-cloud (V2C) solution that advances connected car development. This platform enables more efficient delivery of in-vehicle software and simplifies the operation of different software elements within the same environment. It empowers original equipment manufacturers (OEMs) to develop software-defined vehicles, combining EPAM's digital platform expertise with Renesas' embedded automotive software technology. The AosEdge platform provides a comprehensive software infrastructure for vehicles connecting to the cloud.

• In May 2022, ECARX and COVA Acquisition Corp. announced a merger agreement. The firm specializes in developing hardware and software solutions for connected, automated, and electrified mobility to meet the changing needs of the worldwide automobile industry. ECARX is well-positioned to gain from the move to electric platforms, connected automobiles, and autonomous driving technology. ECARX can offer a full product roadmap and construct an automotive technology platform that effectively satisfies customer needs by collaborating strategically with original equipment manufacturers (OEMs) from the early phases of vehicle development.

• In February 2022, Mojio launched an innovative program to assist automobile Original Equipment Manufacturers (OEMs) in planning to close 3G cellular networks. This closure will impact many American drivers and may cause essential telematics-based emergency services to be disrupted. Mojio has improved its 4G-connected car service and established the 4G Upgrade Program to address this.

• In January 2022, Amazon.com, Inc. collaborated with Stellantis NV to transform the in-vehicle experience for multiple Stellantis clients and accelerate the automotive sector towards a software-driven economy. This collaboration aims to integrate Amazon Devices, Amazon Web Services (AWS), and Amazon Last Mile into Stellantis' operations. Stellantis NV plans to expedite its transformation into an environmentally friendly mobility technology company by embracing Amazon's technology and software expertise. The partnership will include various areas, such as vehicle development, connected in-car experiences, and training future generations of automotive software developers.

Connected Car Market Report Scope

Global Connected Car Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the globally connected car market report based on application, and region:

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Vehicle Management

  • Driver Assistance

  • Mobility Management

  • Safety

  • Entertainment

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • United Arab Emirates (UAE)

    • Saudi Arabia

    • South Africa