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The connected car market is estimated to grow at a CAGR of 27.36% between 2022 and 2027. The size of the market is forecast to increase by USD 172.7 billion. The growth of the market depends on several factors, including increasing internet penetration and its impact on the connected cars market, applications of blockchain technology in connected cars, and government regulations to increase in-vehicle safety and improvement in safety controls.
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Analysis Period |
2017- 2027 |
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Market Size (2017) Historic Year |
USD 28.81 billion |
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Market Size (2027) - Forecasted Year |
USD 246.24 billion |
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Historic Opportunity |
USD 8.67 billion |
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Historic CAGR |
6.80% |
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Future Opportunity |
USD 172.7 billion |
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Market Opportunity Transformation Growth |
755% |
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Market Opportunity Capitalization |
USD 181.37 billion |
This report extensively covers market segmentation by connectivity (embedded solutions, integrated solutions, and tethered solutions), end-user (OEM and aftermarket), 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 includes historic market data from 2017 to 2021.
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The government regulations to increase in-vehicle safety and improvement in safety controls are notably driving the market growth, although factors such as data challenges associated with connected cars 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.
The government regulations to increase in-vehicle safety and improvement in safety controls are notably driving the market growth. Governments worldwide are focusing on improving safety standards and environmental conditions. Telematics solutions such as eCall and ERA-GLONASS are increasingly being adopted in vehicles. These two examples were a result of increased focus on the connectivity capability in vehicles.
Additionally, the increasing adoption of safety technologies like advanced driver assistance systems (ADAS) is another factor attributing to the adoption of connected cars. For instance, ADAS technologies can curb 30% of all accidents, while autonomous technologies can curb them by 90%. While ADAS contributes to reducing accidents, the ability of the automotive reconfigurable instrument is likely to assist the drivers in easier information processing of the in-vehicle systems and contribute to safer driving. Thus, this system contributes to the vehicle's onboard safety and makes it easier for the drivers to process information while constantly having an eye on the road. Therefore, these factors will drive the global market growth during the forecast period.
Big data platforms provided by connected cars to push further developments are emerging trends in the market. The growth of connectivity solutions in the automotive segment is expected to offer a huge opportunity for automobile OEMs during the forecast period. Automotive OEMs focus on developing efficient products for customers, owing to the increasing availability of real-time data. Moreover, big data is expected to grow further due to the rising adoption of connected cars during the forecast period.
Furthermore, insurance providers can use this data to calculate the optimum premium for individual customers as per their driving behavior calculated from their vehicle usage real-time data. This allows insurance providers to create long-term and more profitable customer relationships. Therefore, such factors will fuel the market growth during the forecast period.
Data challenges associated with connected cars are major challenges impeding market growth. The number of vehicles with wireless network connectivity is increasing every year. Connected cars are capable of generating huge amounts of data, including engine performance to driver performance data. The generated data through such cars can influence the growth of the automotive industry and the driving experience. However, there are significant challenges associated with the generation and handling of data. Most importantly, vendors face challenges such as determining what kind of data should be collected, how it should be used, and how the data can be protected.
Furthermore, another data challenges associated with connected cars is understanding how to use the data to provide better and personalized customer experiences. Therefore, such challenges are expected to hinder the growth opportunities for vendors in the market, which in turn, will affect the market growth during the forecast period.
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 Connected Car 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 market.
Airbiquity Inc. - The company operates under one segment. The company under this segment 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 connected cars.
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 embedded solutions segment will be significant during the forecast period. In recent times, telematics with a navigation system and smartphone integration was integrated with the in-vehicle infotainment system. These systems are moving towards adopting embedded software and smartphone-based applications, which provide entertainment, navigation, external communications, security, and Internet-based services.
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The embedded solutions segment was valued at USD 10,747.47 million in 2017 and continued to grow until 2021.The growing demand for hybrid vehicles worldwide is encouraging smartphone manufacturers to develop applications that will help consumers connect their smartphones to the vehicle to provide the real-time status of their vehicle battery. Furthermore, investments in autonomous cars are increasing. , in January 2019, BlackBerry and Baidu, a Chinese search engine company, announced a collaboration to provide embedded solutions for autonomous vehicles in China. Under the collaboration for integration of Baidu high-definition maps into BlackBerry real-time operating system, QNX Neutrino. As such developments and applications require the use of embedded software, such collaborations will drive market growth. Automotive OEMs, of late, are focusing on reducing the cost of embedded infotainment systems integrated into automobiles. The introduction of low-cost infotainment solutions increases the sales of vehicles equipped with infotainment systems. This will lead to the increased adoption of embedded solutions in automotive infotainment systems. Therefore, such drivers are expected to positively impact the growth of the global market during the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The US and Canada are among the major contributors to the growth of the market in North America. The primary factors for the growth are the advent of IoT technologies in cars and the rising adoption of vehicle-to-vehicle (V2V) connectivity. In addition, stringent regulations from National Highway Traffic Safety Administration (NHTSA) on road safety improvements have led to a rise in the adoption of connected features like crash imminent braking, dynamic brake support, and pedestrian automatic emergency braking in cars.
Furthermore, several firms also provide external plug-in connectivity solutions in cars. For instance, the Advance Connectivity and Automation in the Transportation System (ACATS) program conducted by the Government of Canada creates awareness about autonomous and connected technologies and develops innovative connectivity solutions. Such government initiatives are also expected to drive the growth of the market in North America during the forecast period.
The COVID-19 outbreak in 2020 had a negative influence on the North American market. However, due to large-scale vaccination programs conducted by governments several commercial and industrial operations resumed in 2021, resulting in an increasing demand for connected cars. For instance, in July 2021, Novonix announced its plan to set up a production unit at the GE plant in Tennessee. In addition, the increasing usage of modern technology, such as 5G connectivity, will also contribute to fostering the growth of the market in focus during the forecast period.
The report forecasts 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 Connectivity (Embedded solutions, Integrated Solutions, and Tethered solutions), End-user (OEM and Aftermarket), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
Technavio categorizes the globally connected car 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.
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Connected Car Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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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 27.36% |
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Market growth 2023-2027 |
USD 172,767.39 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
24.41 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, 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., Alps Alpine Co. Ltd., AT and T Inc., BMW AG, BorgWarner Inc., DXC Technology Co., Ford Motor Co., Intellias group, Mercedes Benz Group AG, NXP Semiconductors NV, Qualcomm Inc., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Schaeffler AG, Sierra Wireless Inc., Telefonica SA, Tesla Inc., Valeo SA, Volkswagen AG, and Zubie Inc. |
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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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Connectivity
7 Market Segmentation by End-user
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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