Global Connected Car Market: Snapshot

The internet access in vehicles allows them to communicate and transmit data with other vehicles which are around them. Such communications are supported by the dedicated short-range communications (DSRC) enhance safety and help to some of the issues with vehicles. This network allows them to enable connectivity to the other connected devices including smartphones and other devices based on Internet of Things (IoT). Connected cars convey information to keep the drivers informed about the decision of other drivers.

The connected car's market is primarily driven by the growing deployment of advanced automatic electronics in the vehicle. These electronic devices help to improve road safety, offer greater comfort, and include entertainment options for people traveling from the vehicle. The automotive digital technologies improve the in-car experience for users which is augmenting the adoption of these technologies. This is fuelling the growth of the global connected cars market.

However, the high cost of connected car hardware is limiting growth of the connected cars market. Nevertheless, growing demand for services that enable vehicles to connect and continuously enrich with the outer surrounding is creating lucrative opportunities for growth of the market. Additionally, the trend of this connectivity among passengers of high-end cars is expected to boost demand over the forecast period. 

The global connected cars market registered revenue of US$41,289.6 mn in 2015 and is expected to expand with a CAGR of 34.7% over the forecast period from 2013 to 2019 to attain the value of US$131,913.5 mn by the end of 2019.

Affordability of Electric Car to Support Growth

On the basis of application, the global market for the connected car is segmented into infotainment, navigation, and telematics. Of these, the navigation segment dominated the global market and expected to continue its dominance over the forecast period. This growth is attributable to the rising demand for traffic information services among consumers across the globe. Moreover, numerous companies are focusing on upgrading their navigation system and their cars model. These factors are fuelling the growth of the segment. However, the infotainment segment is expected to grow at a faster pace by the end of the forecast period.

On the basis of the connectivity solution, the market is segmented into embedded connectivity solution, tethered connectivity solution, and integrated connectivity solution. Of these, integrated connectivity solution is dominating the global market for connected cars and is expected to account for more than 50% share by the end of forecasts period, followed by the embedded connectivity solution segment. The growth of the integrated connectivity solution is attributable to the mobile devices by the human-machine interface (HMI) of the vehicle.

Growing Adoption from Developing Countries Likely to Create Opportunities

On the basis of region, the global connected cars market is segmented into North America, Europe, Asia Pacific, and Rest of the World. Of these, North America was leading the global market, in 2012, the region registered the revenue of US$9,457.2 mn. North America is expected to expand with the CAGR of 20.1% over the forecast period from 2013 to 2019. However, Asia Pacific is expected to expand with a CAGR of 54.8% over the forecast period from 2013 to 2019. This growth is attributable to the highest deployment of connected cars in China. The US and Canada are the most mature market for connected cars.

Some of the key players operating in the global connected cars market are Microsoft Corporation, Verizon Communications, Toyota Motor Corporation, Hyundai Motor Co., Delphi Automotive, and Mercedes-Benz.

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