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The automotive connected car platform market is estimated to grow at a CAGR of 12.68% and the size of the market is forecast to increase by USD 5,694.07 million between 2022 and 2027. The growth of the market depends on several factors, including the increased focus of OEMs on the development of autonomous and connected vehicles, an improved smartphone ecosystem to act as an enabler for autonomous and connected vehicles, and the rise in the adoption of cloud technologies and IoT to reduce the capital expenditure in developing connected car platforms.
Vehicle infotainment service is becoming the next big thing in the connected car market. Vehicle infotainment is the combination of news, weather, social networking, and audio/video streaming.
Nowadays, differentiation is an important factor for any OEM to attract outreach customers. Hence, OEMs are investing in the development of unique infotainment service offerings for their models, which can be a differentiating factor for the company against the competitors. For instance, in June 2022, an Indian Internet of Things (IoT) company, Trak N Tell (a subsidiary of Bits N Bytes Soft Private Limited), introduced three variants of its IntelliPlay 4G SIM-enabled Android-based car infotainment system. These factors are helping the market reach the next level.
This report extensively covers market segmentation by service (infotainment services and telematics services), technology (integrated solutions, embedded solutions, and tethered solutions), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report consists of historic market data from 2017 to 2021.
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The rise in the adoption of cloud technologies and IoT to reduce the capital expenditure in developing connected car platforms is notably driving the connected car market growth, although factors such as cybersecurity breach issues that are negatively impacting technology adoption may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Connected Car Platform Market Driver
The rise in the adoption of cloud technologies and IoT to reduce the capital expenditure in developing connected car platforms is notably driving the connected car market growth. M2M platforms are increasingly being adopted by Mobile network operators (MNOs). This helps the MNOs to reduce capital expenditure and time-to-market (TTM) for product or service launches. Cloud-based platforms help MNOs manage, assemble, and develop services. In addition, the platforms help telecommunication operators integrate, develop, market, and support M2M connectivity and cloud services across business segments such as retail and automotive.
For example, Fiat Chrysler Automobiles announced that it would use Harman Ignite cloud-based platform to deliver a wide range of connected services to drivers. With a push of a button, the system would assist owners by locating fuel and charging stations, receiving traffic prompts and restaurant offers, predicting maintenance needs, and providing live customer-care assistance. Therefore, these factors will propel the connected car market growth during the forecast period.
Significant Automotive Connected Car Platform Market Trend
Rental companies adopting the connected car platform to attract customers is an emerging trend in the connected car market. Retail customers and rental players are adopting connected car technologies. For instance, Ola (on-demand taxi service in India) has started offering Ola Play, a connected car platform, to Ola rental users. Through this platform, the users are allowed to control the car and driver consoles from their smartphones. They can also control these functions through a device mounted inside the car. Additionally, this platform also allows custom features like music and video streaming through online apps.
The primary objective of these rental companies is to engage customers in using their app for more time, which will benefit customer attraction and retention. This trend is expected to be a positive driver for the market as it opens a new revenue avenue for the market player. Therefore, these factors will fuel the market growth during the forecast period.
Major Automotive Connected Car Platform Market Challenge
Cybersecurity breach issues negatively impact technology adoption which acts as a major challenge to market growth. Wireless communication systems are used by automotive telematics applications in in-vehicle information systems. These systems are prone to hacking and theft of information. Nowadays, these modern systems offer internet connectivity combined with real-time updates and information. Hence, access to such information provides an opening for the breach of information and the threat of malicious software.
In addition, the major concern is the passage of malware through in-vehicle entertainment and information systems to other in-car networks such as CAN buses. This malware may link the in-vehicle entertainment and information systems to the automobile's critical functions. Therefore, hackers can get control of the vehicle's central functions, such as the engine and brakes, by connecting the laptop or mobile devices to the automobile's onboard port. Furthermore, several other security vulnerabilities arise from the insertion of multiple web applications and Bluetooth in automobiles. These applications provide access to social media applications as well as personal contacts. Therefore, these factors will hinder the market growth during the forecast period.
Key Automotive Connected Car Platform Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Connected Car Platform Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the connected vehicle market.
Airbiquity Inc. - The company offers a full range of connected vehicle technologies and services, integration expertise, and solution hosting flexibility to its customers. The key offerings of the company include solutions for automotive-connected car platforms.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the infotainment services segment will be significant during the forecast period. Vehicle infotainment is the combination of news, weather, social networking, and audio/video streaming.
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The infotainment services segment was valued at USD 4,585.38 million in 2017 and continued to grow until 2021. Nowadays, OEMs are investing in the development of unique infotainment service offerings for their models, which can be a differentiating factor for the company against the competitors. For instance, General Motors (GM) incorporated the Google Android Automotive OS to power the infotainment systems in its cars. This would make all Android apps, including Google Assistant and Maps, available on the platform. Currently, touchscreens, voice recognition, and handwriting recognition are widely used in vehicles as mediums to give input to drivers. Earlier the hardware cost associated with these devices was high until the recent past. Hence, the adoption of infotainment systems has significantly increased. Therefore, the segment is expected to remain dominant in the global automotive connected car platform market during the forecast period.
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APAC is estimated to contribute 42% to the growth of the globally connected car market during the forecast period. Another region offering significant growth opportunities to vendors in North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The North American passenger car market is dominated by senior car buyers. The average age of car buyers is about 52 years, and one-third of the population in the region is between 51 to 65 years of age. As the population of age above 50 years has a high income in this region they have the potential to invest in luxuries. All these factors trigger the need for enhanced comfort and safety levels in North America and are expected to be the driving factors during the forecast period.
The sales of luxury cars in this region are encouraging OEMs to increase the adoption of advanced connected car technologies like ADAS, as they can install these systems as essential accessories. OEMs like Ford and GM are trying to develop efficient, connected technologies in their vehicles. Hence, they are adopting different technologies. For instance, Ford shifted from Microsoft OS to QNX OS for its SYNC 3 system to allow itself to add more features. Therefore, these factors will drive the regional connected vehicle marketduring the forecast period.
The manufacturing operations of major automotive companies were at a halt in the first half of 2020 due to the COVID-19 outbreak. However, the easing of lockdowns helped to increase the demand for such car platforms in North America. The manufacturing operations resumed, and car showrooms were reopened in 2021. These factors helped to recover the market from the COVID-19 impact. Hence, these factors are expected to foster the growth of the regional connected vehicle market during the forecast period.
Technavio categorizes the global automotive connected car platform market as a part of the global automotive components and accessories market within the global auto components market. The global automotive components and accessories; market covers companies engaged in the production of parts and accessories for automobiles like passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts connected vehicle market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Service (Infotainment services and Telematics services), Technology (Integrated solutions, Embedded solutions, and Tethered solutions), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
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Automotive Connected Car Platform Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.68% |
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Market growth 2023-2027 |
USD 5,694.07 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
10.66 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Airbiquity Inc., AppDirect Inc., AT and T Inc., BlackBerry Ltd., Capgemini Service SAS, Cisco Systems Inc., CloudMade, Connexion Telematics Ltd., GlobalLogic Inc., Harman International Industries Inc., Insurance and Mobility Solutions, Intellias group, KaaIoT Technologies LLC, LG Electronics Inc., Microsoft Corp., NNG Software Developing and Commercial Llc., Otonomo Technologies Ltd., Qualcomm Inc., Robert Bosch GmbH, and TomTom International BV |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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