Published: Jun, 2018
The constant flux of technology companies and software developers in the global connected car market is what makes the landscape increasingly competitive, finds Transparency Market Research (TMR). A growing number of automotive manufacturers are forging partnerships and entering into collaborations with technology firms to bring innovations in the market. TMR notes that this has enabled them to gain substantial strategic gains and also consolidate their positions. This has enabled players to bring game-changing mobility concepts in the automotive industry, creating lucrative avenues.
Top players operating in the market include Microsoft Corporation, Verizon Communications, Toyota Motor Corporation, Hyundai Motor Co., Delphi Automotive, Mercedes-Benz, Gemalto, Sierra Wireless, Audi, BMW AG, Ford Motor Company, and General Motors.
Rising at a massive CAGR of 34.7% from 2013 to 2019, the global connected market is expected to reach a worth of US$131,913.5 million by the end of this period. The market stood at US$41,289.6 million in 2015.
The various application segments in the connected car market are telematics, infotainment, and navigation. Of these, the navigation application leads presently and is expected to hold its sway throughout the forecast period. The segment is projected to account for a share of 45% of the global market by 2019 end. The rise in demand for navigation applications is attributed to their potential applications among end users for traffic guidance and related information services.
On the geographical front, Asia Pacific has emerged as the region with the most attractive CAGR of 54.8% during the period of 2013–2019. The growth is fueled by the rising demand for mobility technologies in vehicular systems and the rising ubiquity of smartphones among users. The growth is expected to be led by China.
Demand for Better Road Safety, Greater Comfort and Convenience for Passengers Bolster Uptake
The connected car market is driven primarily by the growing deployment of automotive electronics and advanced technologies in vehicular systems. The drive for these technologies stems from the substantial role these play in providing increased road safety, greater comfort, and wide entertainment options, for passengers. The growing adoption of automotive digital technologies in enhancing the in-car experience for users is a notable factor accentuating the market growth.
The growing demand for infotainment services is occupying a crucial role in the rapid expansion of the connected car market. Coupled with this, the growing demand for services that enable vehicles to connect and continuously enrich with the outer surrounding is a key trend expanding in-vehicle infotainment. The demand for immersive information user experiences has gathered steam among passengers of high-end cars and luxury vehicles.
Governmental Mandates on upping Safety of Passengers Provide Robust Thrust to Demand
Various government mandates in emerging and developed nations on promoting the safety of passengers has imparted a robust fillip to the growth of the market. The stringent implementation of vehicular safety among automakers and original equipment manufacturers is also bolstering the demand for better connectivity options in the automotive industry. The bold strides taken by vehicular information technologies such as adoption of 4G connectivity for improving the in-car experience is catalyzing the market growth.
Additional Cost of Connectivity Solutions mars its Wide-scale Adoption
However, the high cost of connected car hardware may hinder its demand among price-sensitive consumers who are unwilling to pay extra cost for advanced car connectivity options. The lack of simple user interfaces in connected car technology ecosystem owing to the dearth of interoperable platforms has also crippled its application at large. The spate of unfavorable events having taken place in the testing of connected car systems in recent times has also adversely affected the prospects of the market.
Be that as it may, the extensive usage of vehicle-to-vehicle and vehicle-to-infrastructure communication connectivity via mobile apps is propelling the growth of the market. Moreover, the adoption of cloud solutions in telematics is opening new paradigms in the connected car market. In particular, the application of telematics has taken auto insurance to the next level of convenience.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Connected Car Market (Connectivity Technology - 4G (LTE), 3G (UMTS, HSPA, and HSPA+), and 2G (GSM, GPRS, and EDGE); Connectivity Solutions – Embedded, Tethered, and Integrated; Application – Navigation, Telematics, and Infotainment) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019”
The global connected car market is segmented based on:
- 4G Technology
- 3G Technology
- 2G Technology
- North America
- Asia Pacific
- Rest of the World (RoW)
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