PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1340690
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1340690
The connected car market is estimated to grow at a CAGR of 19.23% to reach US$194.387 billion in 2028 from US$69.693 billion in 2021.
Technological advancements, increased auto manufacturing, and rising consumer desire for luxury and car comfort are all projected to contribute to the connected car market's expansion. However, the development of improved suspension systems and the rise in demand for lightweight suspension systems are anticipated to offer the market a greater potential for expansion.
There has been a significant change in the Indian automotive market away from well-known brands like the Fiat Padmini Premium, HM Ambassador, and Maruti 800 towards those produced by foreign OEMs. The Federation of Automobile Dealers Associations (FADA) estimates that Maruti Suzuki will hold a 39.17% market share in the nation in 2022 and will have sold 98,318 units at retail, while Hyundai will hold a 15.96% market share and will have sold 40,056 units. Additionally, Tata Motors declared intentions to invest US$3.08 billion in its passenger car over the following five years in April 2022.
Consumer interest in autonomous and connected cars is growing, and throughout the projected period, these technologies are expected to become more widely accepted. ADAS features like collision warning, lane assistance, blind spot recognition, etc, significantly impact consumer behavior. These features are intended to improve the performance of automobiles by decreasing vehicle downtime by advising the owner of any problems with the vehicle. End customers are willing to spend more money on the newest technologies like automated driver assistance systems (ADAS) that improve driving experiences and raise driver and passenger safety because of the automobile sector's growing technological breakthroughs.
According to the Highway Loss Data Institute, by 2026, at least half of all registered vehicles will only have two ADAS systems. Around 71% of registered vehicles will have rear cameras by 2026, and 60% will have back parking sensors. However, just 17% of registered cars are projected to have adaptive cruise control with lane centering by 2026, and only 13% are likely to have adaptive lighting.
Connected cars are enabled with multiple functional, informational, and behavioral safety measures. Connected cars provide emergency call service during accidents, roadside assistance, and other onboard safety measures. More vehicles are coming with 5g connectivity, improving car-to-car communication and enhancing safety measures.
The government of most of the nation is implementing the safety regulatory standard in the automotive industry. For instance, ISO-26262 is a functional safety standard certification that must be adhered to by every automotive manufacturer worldwide for the development of automotive systems-on-chip (SoCs) used in autonomous driving and advanced driver assistance programs (ADAS) applications. Connected and intelligent cars significantly reduce accidents in terms of passive safety. The rising road accidents and fatalities worldwide are pushing the demand for connected cars for enhanced security and reduced accidents.
OEMs are creating software solutions for a more connected, individualized customer experience in addition to making cars. OEMs have the potential to develop new revenue streams and more continuing, direct interactions with their customers emerging from the auto industry's constant evolution.
Additionally, OEMs are developing various strategies to fully capitalize on the connected car market. While some OEMs are building their ecosystem, others are forming alliances with specialized vendors. Moreover, the extended connected automobile ecosystem is crucial to meet consumer demand both now and in the future. Network operators, including telcos and web-scale, are important among the various ecosystem stakeholders. In addition to earning income, these services give players ongoing interactions with their clients that could boost consumer loyalty.
The rising adoption of Advanced Driver Assistance Systems (ADAS) comprising features like adaptive cruise control, lane departure warning, and collision avoidance systems has emerged as a significant driver of the demand for connected car technologies. These systems enhance safety, prompting the need for connectivity to support their functionality and facilitate real-time communication and data exchange between vehicles and infrastructure.
The development and deployment of 5G networks have introduced significant advancements in connectivity, offering faster speeds and enhanced reliability. This has led to real-time data exchange and improved communication between vehicles and infrastructure in the context of connected cars. With the United States emerging as a leader in 5G deployment, boasting access to 5G services for approximately 270 million people, the potential for leveraging this technology in the connected car market is substantial. The widespread availability of 5G services fuels the growth and implementation of advanced connected car technologies in the United States.