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Connected Car Market Size, Share, and Analysis, By Application (Vehicle Management, Driver Assistance, Mobility Management, Safety, Entertainment, and Others), By Network (3G, 4G, 5G, and Satellite), By Technology (Embedded, Tethered, and Integrated), By Sales Channel (OEM and Aftermarket), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Connected Car Market is projected to exhibit a Compound Annual Growth Rate (CAGR) of 16.1% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 64.3 billion and is projected to reach USD 333.4 billion by the completion of 2034.
Connected car is an automobile equipped with internet connectivity and several sensors that allow data to be exchanged with external networks and infrastructure. These vehicles provide various functions, such as real-time navigation updates, remote diagnostics, software updates, vehicle tracking, and interaction with smart home devices. Connected automobiles use the Internet of Things (IoT) to improve driver and passenger safety, along with convenience. They offer services such as predictive maintenance, customized entertainment, and self-driving capabilities. However, high connectivity creates concerns about cybersecurity, data privacy, and vulnerability to hacking. Consequently, with fresh innovations in technology, connected cars are expected to transform transportation by introducing safer and interconnected mobility options. Besides, resolving security and privacy concerns remains crucial to ensure the vast acceptance and smooth integration of connected car technologies.
Connected Car Market is expected to reach USD 333.4 billion during the forecast period, owing to rising consumer demand for advanced vehicle functionalities and the continuous evolution of automotive technology. This growth is attributed to several factors such as the expansion of IoT devices, combined with innovations in artificial intelligence & machine learning and the growing adoption of autonomous vehicles. The connected car market is shaped by significant trends such as the integration of 5G connectivity, the development of advanced in-vehicle infotainment systems, and the introduction of connected car platforms that offer diverse services. In addition, major industry players are strategically pursuing partnerships and acquisitions to enhance their market presence and technological capabilities. Furthermore, regulatory measures that are aimed at improving the safety and environmental sustainability of vehicles are positively influencing the market trajectory, thereby promoting innovation and investment in connected car technologies.
Source: Fatpos Global
Connected Car Market is divided based on Application into Vehicle Management, Driver Assistance, Mobility Management, Safety, Entertainment, and Others. The driver assistance segment is leading the connected car market due to its essential role in boosting safety and convenience for both drivers and passengers. In modern cars, advanced driver assistance systems (ADAS) such as automated emergency braking, adaptive cruise control, and lane departure warning are becoming increasingly desirable. These systems use a combination of sensors and radar to detect possible dangers and help drivers avoid accidents or minimize their damage. Moreover, the growing focus on regulatory measures for road safety, combined with the benefits offered by ADAS is encouraging users to adopt these technologies. Therefore, the driver assistance segment will hold a substantial market share, which highlights its crucial role in shaping automotive innovation and safety standards.
Connected Car Market is classified based on Technology into Embedded, Tethered, and Integrated. The integrated segment is anticipated to dominate the connected car market owing to its smooth integration of connectivity features directly into the vehicle, which provides a unified user experience without depending on external devices. This approach offers dependability, along with improved performance and smooth functionality. Additionally, integrated systems allow automakers to deliver multiple connected services, including navigation, infotainment, telematics, and vehicle diagnostics, without requiring any additional hardware. Moreover, integrated solutions offer flexibility for future upgrades and innovations, thereby ensuring the long-term relevance of connected cars in a rapidly changing technological environment. Thus, such preference for integrated solutions among consumers and automakers highlights their benefits and makes the integrated segment a leader in the connected car market.
Source: Fatpos Global
Standards and Regulatory Support are Anticipated to Encourage Market Expansion
Regulatory support and well-established procedures are important growth catalysts for the connected car market. Governments across the world are formulating policies that are aimed at improving the safety of connected vehicles, in addition to environmental friendliness and other features of connected cars. These policies provide accurate directives to automakers and encourage them to create advanced vehicles that are embedded with modern connectivity according to set standards. Moreover, adherence to these standards ensures the effectiveness of connected vehicles and builds consumer trust in these technologies. Besides, governments are increasingly endorsing these vehicles which creates a favorable environment for investments in research and infrastructural developments, thereby promoting growth within the connected car market.
Consumer Demand for Connected Services will Encourage the Adoption of Connected Cars
Increasing consumer demand for connected services is propelling the expansion of the connected car market. Consumers are seeking modern vehicles that are equipped with advanced connectivity features that offer better safety, combined with convenience and entertainment. Additionally, features such as real-time navigation, remote monitoring, and vehicle-to-vehicle communication, are becoming essential aspects for car buyers. This growing demand encourages automakers to invest in the development of innovative connected car technologies to meet consumer expectations and maintain a competitive edge in the market. Furthermore, the rising popularity of smart devices and digital lifestyles further increases the demand for smooth connectivity solutions in vehicles, which drives growth and shapes the future of automotive technology.
Data Privacy and Security Concerns Can Hamper the Growth of Connected Car Market
Despite the benefits offered by connected car technologies, concerns regarding data privacy and cybersecurity present major obstacles to market growth. The collection, retention, and transmission of sensitive information from connected vehicles creates privacy worries among consumers. In addition, the interlinked nature of connected car systems makes them susceptible to cyber threats and unauthorized breaches, which can jeopardize vehicle safety and personal data security. Thus, there’s a need to effectively tackle these concerns by implementing strict security protocols and measures. Moreover, by addressing these issues, trust can be built among consumers, which will facilitate more acceptance and integration of connected car technologies in society.
Connected Car Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The Asia Pacific region will lead the Connected Car Market due to its expansive and fast-moving automotive sector, which is fueled by urbanization and expanding middle-class populations. Governments across countries like China, Japan, and South Korea are actively promoting smart transportation initiatives, including connected cars, as part of their digitalization goals. Moreover, Asia Pacific has world-renowned technology firms in the telecommunications and software development sector, which are responsible for innovating exceptional connected car solutions and encouraging innovations in the automotive sector.
Concurrently, North America is expected to closely follow the Asia Pacific region due to its strong automotive market and a culture of embracing innovations. Besides, major players like Tesla, General Motors, and Google's Waymo are heavily investing in connected car technologies, which is evident in their products like Tesla's Autopilot and General Motors' OnStar service. Therefore, with growing consumer demand and progress in technological capabilities, North America will emerge as a major contender in the global connected car market during the forecasted period.
Source: Fatpos Global
COVID-19 pandemic had a notable impact on the connected car market as it presented a blend of challenges and opportunities. Initially, the market experienced a downturn as lockdown measures and economic uncertainties resulted in low consumer spending and disrupted supply chains. This caused a slowdown in automotive production and sales, which impacted the integration of connected car technologies into new vehicles. Moreover, travel and mobility restrictions had an immediate impact on the demand for certain connected car features like navigation and in-car entertainment. However, the pandemic also accelerated certain trends within the industry. For instance, with the surge in remote work and online activities, there was high interest in connected car features that provide remote diagnostics and in-car connectivity for virtual meetings and entertainment. Consequently, while COVID-19 initially presented challenges, it also served as a catalyst for innovation and adaptation within the connected car market.
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ATTRIBUTE |
DETAILS |
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Study Period |
2018-2034 |
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Base Year |
2023 |
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Forecast Period |
2024-2034 |
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Historical Period |
2019-2022 |
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Growth Rate |
CAGR of 16.1% from 2024-2034 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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By Application |
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By Network |
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By Technology |
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By Sales Channel |
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By Region |
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Connected Car Market size was valued at USD 64.3 billion in 2023 and is projected to reach the value of USD 333.4 billion in 2034, exhibiting a CAGR of 16.1% during the forecast period.
The Connected Car Market refers to the automotive industry segment focused on vehicles equipped with internet connectivity and integrated communication technologies.
The Driver Assistance segment and the Integrated segment accounted for the largest Connected Car Market share.
Key players in the Connected Car Market include Bosch, Continental AG, Harman International Industries, Inc., Delphi Technologies, Denso Corporation, Aptiv PLC, TomTom NV, Panasonic Corporation, Visteon Corporation, NVIDIA Corporation, Intel Corporation, Qualcomm Technologies, Inc., Verizon Communications Inc., Ford Motor Company, General Motors Company, and Other Prominent Players.
The standards and regulatory support, along with the consumer demand for connected services are the factors driving the hydraulic cylinder market.
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