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PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1346110

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PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1346110

Japan Connected Cars Market Assessment, By Network, By System Type, By Components, By Vehicle Type, By Communication Type, By Sales Channel, By Application, By Region, Opportunities and Forecast, FY2017-FY2031F

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Japan Connected Cars Market size was valued at USD 6.38 billion in 2022, expected to reach USD 17.2 billion in 2030 with a CAGR of 13.2% for the forecast period between FY2023 and FY2030. The Japan Connected Cars Market is a burgeoning sector encompassing technologically advanced vehicles with internet connectivity and communication systems. These connected cars offer various innovative features and services that enhance the driving experience, improve safety, and revolutionize transportation. The market has been experiencing significant growth, driven by several key factors. First and foremost, increasing consumer demand for seamless connectivity, real-time navigation, and in-car infotainment has been a primary driver. Japanese consumers have shown a strong interest in integrating their smart devices with their vehicles, creating a more integrated and personalized driving experience.

The synergy between automotive manufacturers and technology firms has significantly increased the availability and adoption of connected cars. The Japanese government's support for research and development and a supportive regulatory environment have incubated innovation and capital infusion in the corresponding car sector. Safety-centric applications like V2V and V2I communication have gained traction, aligning with Japan's commitment to road safety. This confluence leads to a promising trajectory for the Japan Connected Cars Market, with significant agreements between Nissan, Honda, and Toyota and telecom companies in 2022. These automotive giants have committed to remuneration for services facilitating seamless communication and unfettered access to online functionalities in their vehicles.

Increasing Awareness of the Benefits of Connected Cars

Japan's connected cars market has experienced a significant increase in recent years due to increased consumer awareness of connected vehicles. As people become more technologically literate, they appreciate seamless connectivity and intelligent features like real-time navigation, in-car entertainment, and V2V communication. This has heightened my curiosity about connected cars. Furthermore, realizing how connected cars can elevate overall driving experiences, optimize vehicle performance, and bolster road safety has instrumentally stimulated consumer demand. As this awareness continues to be disseminated through diverse marketing strategies, educational initiatives, and word-of-mouth, the Japan-connected cars market is poised for sustained expansion and increased adoption of these advanced automotive technologies.

A concrete example is Bentley's introduction of the Bentayga Hybrid Azure in 2023. The Bentley Bentayga Hybrid Azure integrates a potent hybrid powertrain with advanced safety features and infotainment capabilities. Its hybrid technology contributes to reduced emissions and enhanced efficiency, while the vehicle also incorporates state-of-the-art safety systems for heightened driver and passenger security. Additionally, the infotainment features offer a sumptuous and interconnected driving encounter.

Internet of Things (IoT) Ecosystem and Smart Cities

Japan's IoT ecosystem and smart cities have significantly impacted the connected cars market. As Japan develops intelligent urban areas, connected cars integrate seamlessly into transportation infrastructure, enabling real-time data exchange and improved traffic management. Smart cities provide parking assistance and optimization of traffic flow, enhancing urban mobility efficiency and convenience. The fusion of connected cars with the IoT paradigm and smart city initiatives has amplified the market's expansion, ushering in a transformative era characterized by innovative and interconnected transportation solutions.

A notable example is the remarkable strides made by Industry 4.0 and the IoT in 2022, which significantly accelerated the connected and autonomous vehicle market. The advent of 5G technology further amplifies critical applications such as autonomous driving, Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Network (V2N), and Vehicle-to-Pedestrian (V2P) communications. The attributes of 5G, encompassing reliability, availability, high-speed connectivity, and minimal latency, pave a clear path for establishing a comprehensive Vehicle-to-Everything (V2X) ecosystem. This sophisticated network architecture ensures seamless connectivity and communication among diverse components within the automotive environment, underscoring the dynamic potential of a fully interconnected future.

Technological Advancements

Japan's connected cars market has experienced significant technological advancements, including advanced driver assistance systems (ADAS) and Vehicle-to-Everything (V2X) communication. These advancements improve vehicular safety by providing collision avoidance, lane departure alerts, and adaptive cruise control. V2X communication enables data exchange with vehicles, infrastructure, and pedestrians, enhancing traffic management and safer driving experiences. The integration of 5G networks has further enhanced connectivity, enabling real-time navigation, infotainment, and seamless over-the-air updates.

Simultaneously, the ascent of cloud and edge computing technologies has unlocked efficacious data processing and storage avenues, unlocking the potential for more intricate and feature-enriched connected car applications. These momentous technological strides persist in steering the Japan-connected cars market towards a future characterized by increasingly astute and interconnected mobility solutions. A pertinent illustration of this trend is Skoda's 2022 introduction of the Enyaq iV 60, an electric SUV blending performance with range efficiency. This model features cutting-edge technological prowess, such as an advanced infotainment system, driver assistance functionalities, and an array of connected services. The Enyaq iV 60 exemplifies Skoda's dedication to innovation and sustainability, enriching driving experiences with state-of-the-art technologies.

Impact of COVID-19

The COVID-19 pandemic had a notable impact on the Japan-connected cars market. During the initial phases of the outbreak, production and sales of vehicles experienced significant disruptions due to supply chain issues and lockdown measures. As people refrained from non-essential travel, the demand for connected cars temporarily declined. However, the pandemic highlighted the importance of connected car technologies in ensuring safer and more efficient transportation. As restrictions eased, there was a renewed interest in connected cars, particularly in contactless services and remote diagnostics features. Automakers and technology providers focused on enhancing in-car infotainment and connectivity features to cater to changing consumer preferences. Despite the challenges, the market displayed resilience, with increasing government support and collaboration driving the sector's gradual recovery.

Impact of Russia-Ukraine War

The war did not directly affect the Japan-connected cars market. Nevertheless, it's crucial to contemplate the potential ramifications for the automotive sector. Japan's substantial dependence on importing raw materials and components from multiple nations, including those impacted by the conflict, amplifies the importance. Any disruption in the global supply chain because of the war could affect the manufacturing and availability of connected car technologies. Furthermore, geopolitical tensions induced fluctuations in exchange rates and gave rise to economic uncertainties, impacting consumer confidence and automobile sales in Japan. The evolving scenario necessitates vigilant scrutiny, as protracted conflicts can yield widespread implications for the global economy and the automotive industry, indirectly influencing the Japan-connected cars market. Continuous monitoring remains imperative in assessing the eventual consequences.

Key Players Landscape and Outlook

The Japan Connected Cars Market exhibited a dynamic and competitive arena where various key players made significant contributions. Prominent automotive giants such as Toyota, Honda, and Nissan took the lead by integrating advanced connectivity solutions into their vehicle models. Furthermore, technology powerhouses like Panasonic, Sony, and Denso played crucial roles in supplying essential components and systems for connected cars.

The future of the Japan-connected cars market showed promise, propelled by escalating consumer demand for innovative features and the government's endorsement of smart mobility initiatives. Anticipated collaborations between traditional automakers and technology firms were poised to gain momentum, driving further progress in connected car technologies and nurturing a competitive and inventive market landscape.

As an illustration, Hitachi Astemo, Ltd., Trend Micro Inc., along with its subsidiary VicOne Inc., aimed to expand their existing partnership by 2025, focusing on providing security solutions for connected cars to achieve commercial viability.

Product Code: MX10362

Table of Contents

1. Research Methodology

2. Project Scope & Definitions

3. Impact of Covid-19 on Japan Connected Cars Market

4. Impact of Russia-Ukraine War

5. Executive Summary

6. Voice of Customer

  • 6.1. Demographics (Age, Geography, Income, etc.)
  • 6.2. Brand Recognition and Recall Rate
  • 6.3. Factors Considered in Purchase Decision
    • 6.3.1. Reliability
    • 6.3.2. Design and Safety Features
    • 6.3.3. Technology and Entertainment
    • 6.3.4. Repair and Maintenance
    • 6.3.5. Roadside Assistance
    • 6.3.6. Reviews and Recommendations
  • 6.4. Product Customization
  • 6.5. Medium of Purchase for Add On Features

7. Japan Connected Cars Market Outlook, FY2017-FY2031

  • 7.1. Market Size & Forecast
    • 7.1.1. By Value
    • 7.1.2. By Volume
  • 7.2. By Network
    • 7.2.1. 3G
    • 7.2.2. 4G-LTE
    • 7.2.3. 5G
  • 7.3. By System Type
    • 7.3.1. Embedded System
    • 7.3.2. Tethered
  • 7.4. By Components
    • 7.4.1. Central Gateway
    • 7.4.2. Head Unit
    • 7.4.3. Electronic Control Unit (ECU)
    • 7.4.4. Telematics Control Unit (TCU)
    • 7.4.5. Others
  • 7.5. By Vehicle Type
    • 7.5.1. Internal Combustion Engines (ICE) Vehicle
    • 7.5.2. Electric/ Hybrid Vehicle
  • 7.6. By Communication Type
    • 7.6.1. Vehicle to Infrastructure
    • 7.6.2. Vehicle to Vehicle
    • 7.6.3. Vehicle to Pedestrian
    • 7.6.4. Vehicle to Cloud
    • 7.6.5. Others
  • 7.7. By Sales Channel
    • 7.7.1. Original Equipment Manufacturer (OEM)
    • 7.7.2. After Market
  • 7.8. By Application
    • 7.8.1. Navigation
    • 7.8.2. Safety
    • 7.8.3. Entertainment
  • 7.9. By Region
    • 7.9.1. North
    • 7.9.2. South
    • 7.9.3. Central
  • 7.10. By Company Market Share (%), FY2023

8. Market Mapping, FY2023

  • 8.1. By Network
  • 8.2. By System Type
  • 8.3. By Components
  • 8.4. By Vehicle Type
  • 8.5. By Communication Type
  • 8.6. By Sales Channel
  • 8.7. By Application
  • 8.8. By Region

9. Macro Environment and Industry Structure

  • 9.1. Supply Demand Analysis
  • 9.2. Import Export Analysis
  • 9.3. Value Chain Analysis
  • 9.4. PESTEL Analysis
    • 9.4.1. Political Factors
    • 9.4.2. Economic System
    • 9.4.3. Social Implications
    • 9.4.4. Technological Advancements
    • 9.4.5. Environmental Impacts
    • 9.4.6. Legal Compliances and Regulatory Policies (Statutory Bodies Included)
  • 9.5. Porter's Five Forces Analysis
    • 9.5.1. Supplier Power
    • 9.5.2. Buyer Power
    • 9.5.3. Substitution Threat
    • 9.5.4. Threat from New Entrant
    • 9.5.5. Competitive Rivalry

10. Market Dynamics

  • 10.1. Growth Drivers
  • 10.2. Growth Inhibitors (Challenges and Restraints)

11. Key Players Landscape

  • 11.1. Competition Matrix of Top Five Market Leaders
  • 11.2. Market Revenue Analysis of Top Five Market Leaders (in %, FY2023)
  • 11.3. Mergers and Acquisitions/Joint Ventures (If Applicable)
  • 11.4. SWOT Analysis (For Five Market Players)
  • 11.5. Patent Analysis (If Applicable)

12. Pricing Analysis

13. Case Studies

14. Key Players Outlook

  • 14.1. Toyota Motor Corporation
    • 14.1.1. Company Details
    • 14.1.2. Key Management Personnel
    • 14.1.3. Products & Services
    • 14.1.4. Financials (As reported)
    • 14.1.5. Key Market Focus & Geographical Presence
    • 14.1.6. Recent Developments
  • 14.2. Volvo AG
  • 14.3. Bayerische Motoren Werke AG
  • 14.4. Mercedes-Benz Japan Co., Ltd.
  • 14.5. Volkswagen Group
  • 14.6. Honda Motor Co.
  • 14.7. Nissan Motor Co., Ltd.
  • 14.8. Hyundai Motor Company
  • 14.9. Kia Motors Corporation
  • 14.10. MG Motor

Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.

15. Strategic Recommendations

16. About Us & Disclaimer

Product Code: MX10362

List of Tables

  • Table 1. Pricing Analysis of Products from Key Players
  • Table 2. Competition Matrix of Top 5 Market Leaders
  • Table 3. Mergers & Acquisitions/ Joint Ventures (If Applicable)
  • Table 4. About Us - Regions and Countries Where We Have Executed Client Projects

List of Figures

  • Figure 1. Japan Connected Cars Market, By Value, In USD Billion, FY2017-FY2031F
  • Figure 2. Japan Connected Cars Market, By Volume, In Unit Thousand, FY2017-FY2031F
  • Figure 3. Japan Connected Cars Market Share, By Networks, In USD Billion, FY2017-FY2031F
  • Figure 4. Japan Connected Cars Market Share, By System Type, In USD Billion, FY2017-FY2031F
  • Figure 5. Japan Connected Cars Market Share, By Components, In USD Billion, FY2017-FY2031F
  • Figure 6. Japan Connected Cars Market Share, By Vehicle Type, In USD Billion, FY2017-FY2031F
  • Figure 7. Japan Connected Cars Market Share, By Communication Type, In USD Billion, FY2017-FY2031F
  • Figure 8. Japan Connected Cars Market Share, By Sales Channel, In USD Billion, FY2017-FY2031F
  • Figure 9. Japan Connected Cars Market Share, By Application, In USD Billion, FY2017-FY2031F
  • Figure 10. Japan Connected Cars Market Share, By Region, In USD Billion, FY2017-FY2031F
  • Figure 11. By Networks Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 12. By System Type Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 13. By Components Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 14. By Vehicle Type Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 15. By Communication Type Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 16. By Sales Channel Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 17. By Application Map-Market Size (USD Billion) & Growth Rate (%), FY2023
  • Figure 18. By Region Map-Market Size (USD Billion) & Growth Rate (%), FY2023
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Jeroen Van Heghe

Manager - EMEA



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Manager - Americas


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