Connected Car Market: Snapshot

The global connected car market is undergoing a series of changes owing to the changing dynamics of consumer preferences. An increasing demand for 4G technology so as to enjoy high data transmission rates can be seen in the market. Safety services such as emergency call (eCall) are becoming increasingly popular among people. By offering innovative features and facilities, car connectivity is thus, revolutionizing the automobile industry. Facilities offered through car connectivity such as preventive maintenance, entertainment features, and constant internet access are beneficial for both drivers and passengers. Most importantly the need to avoid accidents is expected to drive the connected car market.

Governments across countries are mandating safety and security as well as the need for connectivity. The penetration of smart connected consumer electronics and growing availability of fast cellular networks, among other factors are shaping the connected car market and this is expected to ensure that the global connected car market rise from US$41,289.6 mn in 2015 to US$131,913.5 mn in 2019. Falling prices of wireless internet and a high demand for hybrid vehicles and electric vehicles, coupled with other factors are expected to result in the expansion of the global connected car market at a whopping 34.7% CAGR from 2013 to 2019.

Asia Pacific to Replace North America in Terms of High Growth

The connected car market in Asia Pacific is expected to expand at the fastest CAGR of 54.8% from 2013 to 2019, with China in the forefront, leading in terms of connected car deployment. A high scope of mobility and increasing penetration of smartphones in Asia Pacific is expected to drive the market’s growth in the coming years. Previously in the connected car market, North America was leading owing to government mandates in the market and growing need for connectivity. The market in this region was valued at US$9,457.2 mn in 2012. In the coming years to come however, the North America market for connected car is expected to expand at a 20.1% CAGR between 2013 and 2019. The U.S is the most significant and mature market in the region, followed by Canada. Mexico is also expected to offer substantial opportunities for connected cars in by 2019.

Navigation to Lead in Connected Car Market through 2019

In terms of application, the global connected car market is segmented into infotainment, navigation, and telematics. Of these, the navigation segment not only led in the past but is also expected to lead through 2019. The infotainment segment is expected to trail the navigation segment. Navigation is also expected to expand at a high CAGR during the forecast period owing to rising demand for traffic information services among consumers across the globe. Moreover, many vehicle manufacturers are upgrading navigation services in their car models. All these factors are expected to ensure the high demand for navigation and this segment is thus, projected to account for 45% of the market by 2019.

On the basis of connectivity solution, the global connected car market will continue to be led by the integrated segment. The integrated connectivity solution segment is estimated to account for 50% of the market by 2019, followed by the embedded connectivity solution segment. Integration enables applications that run on mobile devices to be controlled by a vehicle’s human machine interface (HMI), thus driving their demand.

Key players in the market are General Motors, T?Mobile US, Inc., Apple, Inc., Bayerische Motoren Werke (BMW) AG, Ford Motor Company, Gemalto, Sierra Wireless, Hyundai Motor Co., Audi, Mercedes?Benz USA, LLC, Toyota Motor Corporation,

The global connected car market is primarily driven by the changing consumer preference and growing awareness about safety and security. The growing need for connectivity and government mandates are also supporting the growth of this market. Some of the factors inhibiting the growth of this market are high cost of hardware and risk of distraction by driver. Rapid advancements in network technology serve as an opportunity, fuelling the growth of this market. 
The report titled “Connected Car Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2013 – 2019,” provides in depth analysis, market size estimates, market shares, and forecast covering the period 2013 – 2019 for the connected car market across the globe. It discusses market drivers, restraints, opportunities, and market trends.
The connected cars market has been segmented based on technology into 4G (LTE), 3G (UMTS, HSPA, HSPA+), and 2G (GSM, GPRS, EDGE). Based on connectivity solutions the market is segmented into embedded, tethered, and integrated. Navigation, telematics, and infotainment are the various applications considered in the scope. North America, Europe, Asia Pacific, and Rest of the World (RoW) are the key regions analyzed on the basis of geography. Each regional segment is analyzed by countries in terms of revenue (USD million) from 2013 to 2019. Market estimates and forecast are made after critical analysis of various trends and demographic and economic factors which affect the market growth. 
The market attractiveness analysis helps in understanding future of various connectivity technologies used in connected cars. To aid in strategic decision-making, detailed profiles of major key players are included. The study analyzes industry players in terms of revenue, SWOT, business strategies, and recent developments in the field of connected car. It includes the recent activities of players in terms of product launches, supply contracts, expansion plans, and partnerships and collaborations in the industry. 
The comparative analysis of all the segments will help in understanding the competition among the segments. Supply chain analysis illustrates the flow of product and information in the connected car market. Porter’s Five Forces analysis provides competitive insights into market dynamics and connected car industry competition. 
The report segments the global connected car market as: 
  • Connected Car Market, by Connectivity Technology:
    • 4G technology
      • LTE
    • 3G technology
      • UMTS
      • HSPA
      • HSPA+
    • 2G technology
      • GSM
      • GPRS
      • EDGE
  • Connected Car Market, by Connectivity Solutions:
    • Embedded
    • Tethered
    • Integrated
  • Connected Car Market, by Application:
    • Navigation
    • Telematics
    • Infotainment
  • Connected Car Market, by Geography:
    • North America
      • U.S.
      • Mexico
      • Canada
    • Europe
      • Germany
      • UK
      • Italy
      • France
      • Rest of Europe
    • Asia Pacific
      • Japan
      • South Korea
      • China
      • Australia
      • Rest of Asia Pacific
    • Rest of the World (RoW)
      • Middle East
      • Latin America