Rise in demand for luxury features in a vehicle is expected to drive the global automotive connected services market. The trend toward connectivity in automobiles is a key factor driving rapid transformation of the automotive and mobility sectors.
Expansion of the automotive connected services market is accompanied by the development of a wide range of new and innovative services making mobility safer, more comfortable, and more efficient
Key Drivers of Automotive Connected Services Market
Increase in demand for safe vehicles across the globe is expected to be a key factor boosting the global automotive connected services market. Connected services include global positioning system (GPS), biometric lock/unlock of vehicle, and remote vehicle locking/unlocking offer modern safety features to a vehicle. Increase in demand for such features among passengers is compelling automakers to provide these features in their vehicles. Additionally, aftermarket players are providing retrofit of connected devices in existing vehicles at affordable costs.
Connected devices in a vehicle enhance driving experience in a vehicle. Features such as navigation, streaming services, and smartphone integration offer comfortable driving experience to vehicle passengers. According to ‘Connected Vehicle Trend Radar 2’ research study conducted by Capgemini in 2019, the number of connected cars is projected to increase to 352 million by 2023, as compared to 119.4 million connected vehicles in 2018.
Increase in trend toward sustainable and green technologies is expected to propel the global automotive connected services market. According to research conducted by Capgemini, 60% of overall respondents believed that connected services can have a positive impact on the environment. As per this research, in China specifically, 77% of people are willing to pay more for connected services, which are targeting sustainability, while in Europe, 42% of car owners are willing to change their car brand if they knew that other brands offered sustainable connected services.
Rise in trend towards electric vehicles coupled with stringent emission regulations enacted by government organizations on IC-engine vehicles is offering lucrative opportunity for the players engaged in the global automotive connected services market. Various automakers have equipped their vehicles with connected devices in order to attract more number of customers. All the factors mentioned above are expected to drive the global automotive connected services market.
Impact of COVID-19 Pandemic on Global Automotive Connected Services Market
Disruptions in supply chain catering to the automobile industry, owing to the shutdown of production and manufacturing facilities caused by the coronavirus pandemic across the world, is estimated to contract the market in 2020-2021. Consequently, the coronavirus pandemic has hampered the global automotive connected services market.
The market is anticipated to recover by increasing production volume of vehicle components as well as vehicles in 2021. This, in turn, is projected to offer lucrative opportunity to players operating in the supply chain of the automotive connected services market during the forecast period.
North America and Europe combined to Account for Prominent Share of Global Automotive Connected Services Market
In terms of region, the global automotive connected services market can be segmented into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa
North America and Europe have presence of economically stable countries. These regions are home to technologically advanced research institutes catering to the development of vehicle safety and comfort technologies. Additionally, major automakers and aftermarket players have established their technological centers and manufacturing facilities in various countries in these regions including the U.S., Germany, the U.K., and France.
The automotive connected services market in North America is expected to expand significantly owing to an increase in adoption of connected services in passenger and commercial vehicles due to stringent governmental regulations regarding road safety in the region
Increase in awareness about green technologies in North America and Europe is expected to further drive the automotive connected services market in these regions
Key Players Operating in Automotive Connected Services Market
The global automotive connected services market is highly concentrated owing to the presence of top manufacturers. A few key players operating in the global automotive connected services market are:
Robert Bosch GmbH
HARMAN (Samsung Electronics)
FORD MOTOR COMPANY
FORD MOTOR COMPANY
Global Automotive Connected Services Market: Research Scope
Global Automotive Connected Services Market, by Vehicle Type
Medium Duty Commercial Vehicle
Heavy Duty Commercial Vehicle
Global Automotive Connected Services Market, by Propulsion
Battery Electric Vehicle
Hybrid Electric Vehicle
Plug-in Hybrid Electric Vehicle
Global Automotive Connected Services Market, by Connected Device Hardware
Electronic Control Unit
Telematic Control Unit
Keyless Entry Systems
Global Automotive Connected Services Market, by Connected Services
Social Media & Other Apps
eCall & SOS Assistance
Auto Parking/Connected Parking
Global Automotive Connected Services Market, by Network Type
Global Automotive Connected Services Market, by Sales Channel