PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1408893
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1408893
Connected Car Market size was valued at USD 27,400 Million in 2022, expanding at a CAGR of 21.2% from 2023 to 2030.
A connected car is a vehicle that is linked to the internet. It establishes a connection through mobile data networks and has the ability to transmit data to other devices both inside and outside of the car. This includes providing remotely accessible services on smartphones and other devices. Connected vehicles have the capability to download updates, send remotely accessible data, and connect to other devices through the car's built-in WiFi. This technology also allows access to telematics data and remote vehicle functions, which are particularly popular with electric vehicles (EVs). It is important to note that connected car technology is not limited to traditional cars alone. Self-driving vehicles will also utilize this technology to communicate with the road infrastructure and cloud system. Currently, connected cars are causing disruptions in the automobile industry as more and more smart vehicles are being introduced. Buyers are increasingly inclined towards connected cars. In the future, connected technology will become the standard, enhancing safety and reducing accidents. The next-generation 5G connectivity will further improve this technology, making connected vehicles even smarter and more user-friendly.
Increasing demand for High-End luxury cars and growing concerns over vehicular safety and security are expected to drive the growth of market.
High-end luxury cars are known for their advanced features and technologies, such as connectivity solutions, which attract consumers seeking an enhanced driving experience and the prestige associated with luxury brands. Unlike the mainstream market, which is projected to have little to no growth until 2031, the luxury segment has seen a significant increase in volumes, with a year-on-year growth of almost 20%. This growth trend may be attributed to the higher inventory of luxury cars available at dealerships and original equipment manufacturers (OEMs). Connected cars offer various safety features, including real-time monitoring, automatic emergency response systems, and collision avoidance technologies. Additionally, the integration of advanced driver-assistance systems (ADAS) for improved safety presents a growth opportunity for the market. However, it is important to note that cybersecurity concerns may hinder the market's growth.
Geographically, this market is spread across various regions including North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided based on the countries involved in business activities. The Asia Pacific region is anticipated to have a significant impact on the market's growth, primarily due to the integration of IoT in the automotive industry and the emergence of autonomous driving trends. Asia Pacific has been at the forefront of adopting and incorporating IoT technologies in various sectors, including automotive. The integration of IoT in the automotive sector allows vehicles to connect to the internet, enabling communication between vehicles, infrastructure, and other smart devices. According to data from the China Association of Automobile Manufacturers, China's automobile manufacturing industry recorded an operating income of 9289.99 billion CNY in 2022, marking a 6.8% year-on-year increase and accounting for 6.7% of the total operating income of industrial enterprises above a certain size. China stands out as a significant contributor to IoT, with an estimated 8.6 billion devices by 2030, according to internet of things statistics. The latest statistics on the Chinese automotive industry reveal that it was projected to generate 11.65 trillion Yuan in annual revenue for 2020. Additionally, the industry employed over five million people in China in 2019. In the forecast period, Europe and North America are expected to drive market growth, primarily due to the increasing concerns regarding vehicular safety and security.
The demand for connected cars is increasing, and manufacturers need to keep up with emerging trends in order to remain competitive. Despite the fact that connected cars have been in existence for more than two decades, the market has experienced rapid growth in the past 5-8 years. This growth has prompted original equipment manufacturers (OEMs) to compete for additional value and explore new ways to generate revenue by offering premium services. The potential for revenue generation is significant, particularly with the rise of electric vehicles (EVs) and the abundance of data that can be collected from them to enhance the customer experience. Numerous startups are focusing on specific aspects of the connected car ecosystem, such as cybersecurity, over-the-air updates, and V2X communication. These companies often bring innovation and agility to the market. Many players in the connected car market are forming strategic partnerships and collaborations to leverage each other's strengths. This includes partnerships between automakers and technology companies, as well as collaborations between traditional OEMs and startups.
On January 4, 2023, HARMAN, a subsidiary of Samsung Electronics Co., Ltd. specializing in automotive technology, introduced its newest lineup of products aimed at providing drivers, passengers, and other road users with immersive and valuable automotive experiences. The HARMAN EXPLORE exhibit, currently showcased at CES 2023 in the Virgin Hotel, Las Vegas, offers live demonstrations of these cutting-edge products that are readily available for integration by original equipment manufacturers (OEMs). These innovative solutions are designed to elevate safety, well-being, and entertainment in unprecedented ways.
The scope of this report covers the market by its major segments, which include as follows: