Connected Car M2M Connections and Services Market in the UK 2016-2020

Overview of the connected car M2M connections and services market in the UK

Connected cars enable drivers to connect seamlessly with online platforms and obtain real-time communication such as traffic updates during travel. One of the important aspects of connected cars is the availability of various infotainment services, which includes audio and visual entertainment, connectivity, and navigation. Mostly these serve the driver’s and passenger’s entertainment needs as the end user can stream multimedia content and access social networks while on the move. The growing demand for in-car infotainment services is one of the primary factors driving the growth of this market in the UK. Moreover, infotainment includes productivity services such as cross-linking the vehicle with smart homes so the end user can control several household functions such as regulating the heat, testing security cameras and window sensors, accessing e-mails, and managing phone calls. The availability of such nifty features with infotainment services will bolster this market’s growth during the predicted period. The market research analysts at Technavio have predicted that the connected car M2M connections and services market in the UK will witness staggering growth and will post a CAGR of more than 32% during the forecast period.

This industry research study identifies the emergence of autonomous or unmanned vehicles as one of the emerging trends propelling this market’s growth prospects in the coming years. Autonomous vehicles are among the major innovations in the automotive industry as they have secure social, economic, and mobility-related benefits. Although sophisticated autonomous or unmanned vehicles are already in existence, these vehicles are yet to be commercialized. Many automobile manufacturers are conducting pilot tests and are looking to launch fully automated driverless cars in near future, which will contribute to this market’s growth. For instance, Volvo is undertaking the trial for autonomous vehicles in the UK, with up to 100 test vehicles on the roads of Britain.

Segmentation by application and analysis of the connected car M2M connections and services market

• Safety and driving assistance
• Connectivity
• Navigation services
• Infotainment services
• Diagnostics and maintenance

During 2015, the safety and driving assistance segment led the connected car M2M connections and services market and accounted for more than 65% of the market share in terms of revenue. Safety features include the ability to contact emergency services, vehicle diagnostics and directions, and track stolen vehicles. Moreover, the incorporation of safety features in vehicles have improved considerably with the deployment of sensors in vehicles that have transformed the passenger’s overall experience. Since safety remains a critical matter of concern for consumers and auto manufacturers, this segment is anticipated to show promising growth in the coming years.

Segmentation by usage and analysis of the connected car M2M connections and services market

• OEM
• Aftermarket

The connected car OEM segment led the market during 2015 and is expected to reach more than USD 5 billion by 2020. The growth of this segment can be attributed to the increasing focus towards advanced value-added services. In the UK, most of the automotive manufacturers are witnessing intense competition. This has compelled manufacturers to provide value added services that make the connected cars unique and different from other competitors.  This augmented demand for value-added services is expected to propel this segment’s growth during the predicted period.

Competitive landscape and key vendors

The connected car M2M connections and services market in the UK is highly competitive due to the presence of several well-established international, regional, and local vendors. With telecommunications companies, telematics providers, automobile companies, chip makers, and technology providers exploring the market, the competition among the suppliers is likely to intensify in the coming years.

The leading vendors in the market are -

• Audi Connect
• BMW
• British Telecom
• Gemalto
• GM

Other prominent vendors in the market include Delphi Automotive, Ford Motors, IBM, Intelligent Mechatronic Systems, Mercedes-Benz Connect, Parrot Automotive, PSA Peugeot Citroën, Qualcomm, Sierra Wireless, Tech Mahindra, Toyota Motors, Volkswagen, Wipro, and Verizon Enterprise Solutions.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the connected car M2M connections and services market in the UK?
• What are the key market trends impacting the growth of the connected car M2M connections and services market in the UK?
• What are the challenges to market growth?
• Who are the key vendors in this market space?
• What are the market opportunities and threats faced by the vendors in the connected car M2M connections and services market in the UK?
• What are the trending factors influencing the market shares of the UK?
• What are the key outcomes of the five forces analysis of the connected car M2M connections and services market in the UK?

Technavio also offers customization on reports based on specific client requirement.

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