Automotive Connected Car Platform Market by Service, Technology, and Geography - Forecast and Analysis 2023-2027

Automotive Connected Car Platform Market Forecast 2023-2027

The automotive connected car platform market is estimated to increase by USD 5.69 billion and grow at a CAGR of 12.68% between 2022 and 2027. Market growth hinges on various factors, notably the heightened attention of OEMs towards crafting autonomous and connected vehicles, enhancements in the smartphone ecosystem facilitating the integration of such vehicles, and the growing acceptance of cloud technologies and IoT to mitigate capital expenditure in building 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. 

What will be the size of the Automotive Connected Car Platform Market During the Forecast Period?

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Market Segmentation

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.

By Service

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 4.58 billion 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 market during the forecast period.

By Region

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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 is 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 market during the forecast period.

Market Dynamics and Customer Landscape

The market is propelled by the surge in demand for Advanced Driver Assistance Systems (ADAS) and Vehicle Infotainment systems as consumers increasingly prioritize safety, comfort, and convenience features in their vehicles. The evolution of Autonomous Cars and the integration of technologies like Electronic Stability Control (ESC) and Autonomous Emergency Braking (AEB) further drive market growth. OEMs are focusing on enhancing connectivity through Vehicle-to-Vehicle (V2V) communication, fostering collaboration with telecommunication companies like AT&T Intellectual Property to develop 5G-enabled connected car solutions. This trend is supported by the expansion of machine-to-machine (M2M) connectivity platforms and the advent of high-speed data transfer technologies like 5G, revolutionizing the automotive industry's landscape. 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 Market Driver

The surge in cloud technology and IoT adoption to streamline the development of connected car platforms is a significant driver fueling the growth of the market. As Mobile Network Operators (MNOs) increasingly embrace Machine-to-Machine (M2M) platforms, they experience reduced capital expenditure and accelerated time-to-market for new products or services. Cloud-based platforms facilitate efficient management, assembly, and development of services for MNOs, enabling seamless integration, marketing, and support of M2M connectivity and cloud services across diverse business sectors. For instance, Fiat Chrysler Automobiles' utilization of the Harman Ignite cloud-based platform illustrates how such platforms enhance driver experience by offering various connected services, including navigation assistance, traffic updates, and predictive maintenance alerts. This trend is poised to drive substantial growth in the market in the foreseeable future.

Significant 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 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 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 Market Customer Landscape

Who are the Major Automotive Connected Car Platform Market Companies?

Companies 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:

• 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.

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.

Segment Overview

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).

• Service Outlook 
  • Infotainment services
  • Telematics services

• Technology Outlook 
  • Integrated solution
  • Embedded solutions
  • Tethered solutions

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The market is experiencing robust growth driven by various factors, including the advancement of network technology, rising consumer demand, and the increasing adoption of online platforms by car manufacturers and service providers. With the integration of sensors, processors, and other technological advancements, car manufacturers are enhancing vehicle performance while meeting global standards and prioritizing luxury and comfort. Additionally, innovations such as lightweight suspension systems and 5G-enabled connected car solutions are revolutionizing the industry, reducing maintenance costs, and improving data transfer speeds and bandwidth. These platforms enable features like remote control access, GPS tracking, and in-car hotspots, enhancing connectivity and convenience for drivers. Moreover, advanced diagnostic systems and fleet management tools streamline maintenance schedules and improve safety services, while intelligent transportation systems help alleviate traffic jams and provide real-time parking space availability updates. As the automotive industry continues to embrace connectivity and collaboration, initiatives like the Continental Cooperation Portal facilitate seamless integration and cooperation among stakeholders, driving further growth in the Automotive Connected Car Platform Market.

In the ever-evolving landscape of the automotive industry, technological advancements continue to revolutionize the driving experience. From cutting-edge safety features to seamless connectivity solutions, stakeholders across the sector are embracing innovation to meet the demands of modern consumers. As industry leaders such as Canalys and LEVC (London Electric Vehicle Company) spearhead initiatives to redefine the future of mobility, the integration of advanced connectivity technologies remains a key focus area.

One of the notable advancements shaping the automotive industry is the integration of the Lane-Keep Assist feature. Leveraging a combination of sensors and intelligent algorithms, this feature enhances driver safety by detecting lane departures and providing corrective steering inputs when necessary. By promoting safer driving practices, Lane-Keep Assist contributes to the overall goal of reducing accidents and improving road safety. LEVC, a pioneer in the production of electric vehicles, exemplifies the industry's commitment to sustainability and innovation. With a focus on eco-friendly mobility solutions, LEVC's electric vehicles combine cutting-edge technology with luxury and comfort, offering consumers a compelling alternative to traditional gasoline-powered vehicles. As the demand for electric vehicles continues to grow, companies like LEVC play a crucial role in driving the transition towards a more sustainable transportation ecosystem.

In addition to sustainability, the automotive industry is also witnessing a shift towards connected cars solutions enabled by 5G technology. With the rollout of 5G networks, 5G enabled connected cars solutions are poised to revolutionize the driving experience, offering seamless connectivity and advanced features such as real-time navigation, remote vehicle monitoring, and over-the-air updates. These connected solutions not only enhance convenience for drivers but also pave the way for new business models and revenue streams for automotive manufacturers and service providers.

Furthermore, the transition from 3G/4G service to 5G connectivity is expected to unlock new opportunities for internet services in vehicles. With faster data speeds and lower latency, 5G-enabled connected cars can support a wide range of internet-based applications, including streaming media, in-car entertainment, and vehicle-to-vehicle communication. This seamless connectivity experience enhances the overall driving experience, allowing passengers to stay connected and productive while on the go. Moreover, advanced diagnostic systems and mobile applications are transforming the way drivers interact with their vehicles. With the proliferation of sensors and onboard diagnostics, modern vehicles can proactively monitor performance metrics and alert drivers to potential issues before they escalate. Mobile applications complement these capabilities by providing drivers with remote access to vehicle data, maintenance alerts, and personalized driving insights, empowering them to make informed decisions about their vehicles.

As the automotive industry continues to embrace connectivity and innovation, global standards for vehicles are becoming increasingly important. By establishing common protocols and interoperability standards, stakeholders can ensure seamless integration of connected car technologies and Luxury & comfort in vehicles across different markets and regions. This standardization not only facilitates global deployment but also promotes interoperability, compatibility, and cybersecurity in connected vehicles.

In conclusion, the automotive industry is undergoing a profound transformation fueled by advanced connectivity technologies. From safety features like Lane-Keep Assist to sustainable mobility solutions like electric vehicles, stakeholders are pushing the boundaries of innovation to meet the evolving needs of consumers. By embracing 5G-enabled connected cars solutions, advancing global standards, and leveraging advanced diagnostic systems and mobile applications, the industry is poised to redefine the future of mobility and drive towards a safer, more connected, and sustainable transportation ecosystem.

Automotive Connected Car Platform Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 12.68%
Market growth 2023-2027	USD 5.69 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	10.66
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	APAC at 42%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market forecasting, 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.
Customization purview	If our market research 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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What are the Key Data Covered in this Automotive Connected Car Platform Market Report?

• •    CAGR of the market during the forecast period
  •    Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
  •    Precise estimation of the size of the market size and its contribution to the parent market
  •    Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
  •    Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
  •    Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
  •    Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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