The global Connected Car Market is estimated to be USD 72.89 billion in 2017 and is projected to reach USD 219.21 billion by 2025, at a CAGR of 14.8% from 2017 to 2025.
The major factors driving the growth of the market include an increase in vehicle legislation and industry compliances regarding safety and cybersecurity of the vehicle, and increasing demand for convenient features, such as navigation, remote diagnostics, and multimedia streaming. The new vehicle safety norms are encouraging automakers to make vehicle data more secure from remote hacking and malfunctioning, which in turn is increasing the demand for connected cars. On the other hand, the absence of strong network infrastructure in developing countries may create a challenge to the growth of the connected car market.
The rising trend of connectivity and digitalization making the automotive industry to move towards software-and-services approach
Drivers and passengers are increasingly expecting the access to connected services in their vehicles. These connected services are shaping the sales of new vehicles with a significant revenue stream. Currently, end-users want convenient driving experience in their road journey. These new connected technologies are making competitive challenges for OEMs as other non-automotive players of various industries are entering the automotive space. The features which have been considered under the connected services are named as navigation, remote diagnostics, multimedia streaming, social media & other mobile apps, and OTA updates.
Safety & Security
The connected car features various functions for the safety of the driver and passenger, such as eCall & SOS assistance, on-road assistance, and collision warning. For data privacy, the features such as cybersecurity and remote operation, have been offered. The safety & security services market is driven by the government initiatives to reduce the number of road accidents and increase the safety of drivers and passengers. For an instance, the European transportation authority has mandated the eCall; every new car should have eCall capability for emergency situations.
In the recent years, a few companies have tested automated driving using onboard sensors and high-resolution digital maps (V2N). However, the industry experts believe that 5G-based V2V and V2I would allow better adaptation of moving vehicles in accordance with the nearby traffic and offer higher customer satisfaction. Advanced control systems in these cars interpret the sensory information to identify appropriate navigation paths, obstacles, and relevant signage.
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- Automobile manufacturers
- Automobile organizations/associations
- Cloud service providers
- Compliance regulatory authorities
- Connected car hardware manufacturers
- Government agencies
- Information Technology (IT) companies and system integrators
- Investors and Venture Capitalists (VCs)