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The in-car Wi-Fi market size is estimated to grow at a CAGR of 49.01% between 2023 and 2028. The market size is forecast to increase by USD 270.53 billion. The growth of the market depends on several factors such as wide range of data plans for in-car Wi-Fi to suit individual needs, growing demand for in-vehicle infotainment and improved internet bandwidth for cars.
This in-car wi-fi market report extensively covers market segmentation by technology (3G and 4G, 5G), application (residential and commercial), and geography (Europe, APAC, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
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Our researchers analyzed the data with 2023 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.
A wide range of data plans for in-car Wi-Fi to suit individual needs is notably driving the market growth. The telecom network providers have long been in a battle against each other to provide unlimited data plans at the best price. The automotive OEMs seem to have jumped in the race, too; General Motors, Ford, and Subaru offer unlimited data plans for in-car Wi-Fi usage. The potential of in-car Wi-Fi is still untapped, and consumers mostly prefer using their smartphone as a portable hotspot for in-car usage.
Moreover, the network providers and the OEMs have been trying to lure customers into adopting in-car Wi-Fi by offering various attractive data plans. This is expected to drive the market for in-car Wi-Fi during the forecast period. With data plans comparable to mobile data packs, consumers are expected to switch to in-car Wi-Fi data rather than using their smartphone data for in-car usage. Such factors are expected to drive the growth of the global in-car Wi-Fi market during the forecast period.
Big data platform provided by connected cars is an emerging trend shaping the market growth. The growth of connectivity solutions in the automotive industry is offering a huge opportunity for OEMs to develop an effective product for customers, owing to the availability of real-time data. This data is expected to increase further due to the rise in the adoption of connected cars during the forecast period. For instance, telematics devices will produce data for information like date, time, speed, acceleration, deceleration, cumulative mileage, fuel consumption, and navigation details. This data is approximately in the range of 6 MB to 20 MB per customer annually; hence, total data will be more than 1 TB per year for 100,000 vehicles.
In addition, CSC, the global leader in next-generation IT services and solutions, announced the new usage-based insurance (UBI) and telematics offering in July 2016, which will allow insurers to price their products on an individual basis. In addition, CSC is the first to introduce telematics solutions with insurance management, and we expect new players to enter the same during the forecast period. Such factors are expected to drive the growth of the global in-car Wi-Fi market during the forecast period.
Consumer reluctance to adopt in-car Wi-Fi is a significant challenge hindering the market growth. Talking about the in-car Wi-Fi, the question that pops up is whether the consumers would be willing to pay for the data for in-car Wi-Fi or continue using their smartphone, which can be easily used for making in-car Wi-Fi hotspots. In this case, the same smartphone data can be used for in-car Wi-Fi as well, which implies that the consumer does not need to pay any additional charges for in-car Wi-Fi. In addition, security and privacy concerns among consumers might be a hurdle for the take-off of in-car Wi-Fi services. For an OEM, understanding and prioritizing user needs would be the first step toward creating a successful experience. The adoption of the system would depend on how well the solution meets the consumers' needs for a smooth and seamless experience. For instance, if an electronic tolling system, which is widely prevalent, required active driver engagement, its adoption would have been very low.
Consequently, deciding on the right solution for the user would depend on understanding the user's expectations, satisfying the existing pain points that the user faces, and uncovering requirements unknown to the user. High involvement of the drivers and passengers throughout the development of solutions like in-car Wi-Fi services would ensure successful adoption. Such factors are expected to impede the growth of the global in-car Wi-Fi market during the forecast period.
The market research 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 In-Car Wi-Fi Market Customer Landscape
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 market.
AB Volvo - The company offers in-car Wi-Fi with connection for up to eight devices, and can use on board apps, stream music, and receive real time traffic updates whilst passengers can choose their own online entertainment.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The 3G and 4G segment is estimated to witness significant growth during the forecast period. 3G has set the standards for most of the hi-tech wireless technologies that followed it (4G, 4G LTE, 5G, and others). Various features, such as web browsing, email, video downloads, /image sharing, and other smartphone technologies, were introduced because of the advent of 3G.
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The 3G and 4G segment was the largest segment and was valued at USD 392.90 million in 2018. However, the advent of 5G has led major vendors such as General Motors to start their R&D on providing 5G technology. In August 2021, General Motors contacted AT and T, a global network service provider, and signed a deal to use the AT and T network for its 5 G-enabled vehicles by 2024. Hence, the demand for 4G technology may decline in the and hence limit the growth of the global in-car wi-fi market during the forecast period.
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Europe is estimated to contribute 50% 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. Countries such as Germany, France, Italy, Spain, and the UK were the major contributors to the growth of the in-car Wi-Fi market in Europe, owing to the high penetration of luxury cars in these countries. The improving economic conditions in these countries are boosting the demand for luxury vehicles, leading to the increased demand for in-car Wi-Fi in Europe. Regulatory initiatives play an essential role in adopting connected solutions such as in-car Wi-Fi for passenger cars.
For instance, the European Union (EU)has mandated the installation of e-Call in all new passenger cars since April 2018. As automotive personal assistant systems have different in-vehicle systems integrated into them, all these government initiatives mentioned above will positively affect the in-car Wi-Fi market in Europe during the forecast period.
The outbreak of COVID-19 in the region hindered the growth of the regional in-car wi-fi market in 2020. However, the region witnessed a decline in COVID-19 cases due to a rise in vaccination drives at the beginning of 2021. This led to the resumption of the operations of automotive manufacturing units, and a rise in investments in the automobile industry during the COVID-19 crisis further helped in the recovery of automobile sales in the region in the first half of 2021. For instance, the companies that offer ride-hailing services have resumed their operations after the lifting of lockdown restrictions, which further led to an increase in demand for in-car Wi-Fi, thereby driving the regional market growth during the forecast period.
The in-car Wi-Fi market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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In-Car Wi-Fi Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 49.01% |
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Market Growth 2024-2028 |
USD 270.53 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
48.56 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 50% |
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Key countries |
US, China, Japan, Germany, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, Bayerische Motoren Werke AG, BYD Co. Ltd., Chongqing Changan Automobile Co. Ltd., Dr. Ing. h.c. F. Porsche AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Kia Motors Corp., Mahindra and Mahindra Ltd., Mercedes Benz Group AG, Mitsubishi Motors Corp., NIO Ltd., Nissan Motor Co. Ltd., Rairdons Subaru of Auburn, Renault SAS, SsangYong Motor Co., Tesla Inc., Toyota Motor Corp., and Volkswagen AG |
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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, 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Application
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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