Connected Car Market — World Players Forecast Analysis Till 2025
The increasing customer demand for a safer and enhanced driving experience and the introduction of advanced technologies such as the internet of things (IoT) in the automotive domain are the major factors driving the advancement of the global connected car market. The market is predicted to reach a valuation of $198,459.7 million by 2025, demonstrating a CAGR of 24.1% from 2020 to 2025.
Driver assistance, vehicle safety, fleet management, mobility management, and entertainment are the main categories under the service segmentation of the connected car market. Out of these, the mobility management division is predicted to register the fastest market growth in the coming years. This is because of the rising incorporation of shared mobility solutions and services such as ride-sharing, ride-hailing, two-wheeler sharing, and carsharing across the world. The vehicles used for shared mobility purposes must have higher operational efficiency, enhanced road safety and vehicle tracking features, improved vehicle management features, and higher adoption of IoT-based solutions and are thus, heavily dependent on connected car solutions.
Between the aftermarket and the original equipment manufacturer (OEM) categories under the end use segmentation of the connected car market, the aftermarket category is predicted to demonstrate faster growth in the market during the coming years. Due to the rising requirement of retrofitting the connected car solutions into the already existing automobiles and the ballooning demand for the upgradation and replacement of these solutions, the incorporation of these solutions by the aftermarket companies will increase rapidly in the coming years.
Globally, the Asia-Pacific (APAC) connected car market will exhibit the fastest growth in the upcoming years. This is ascribed to the rapid technological advancements and innovations in the automotive industry in the various APAC nations such as Japan, South Korea, and China. Furthermore, China is currently one of the largest manufacturers of connected cars across the world, on account of the launch of numerous connected car-associated technology development programs, changing government safety regulations for automobiles, and the rising manufacturing capacity of the passenger vehicle manufacturing companies in the country.
The players operating in the connected car market are getting into partnerships with each other for enhancing their market presence. For example, DENSO CORP. announced in September 2019 that it has started a partnership with BlackBerry Ltd. for developing connected mobility solutions. Under this partnership, the firms started working on an integrated human-machine interface (HMI) digital cockpit system called Harmony CoreTM. This system would incorporate the use of QNX Hypervisor technology, developed by BlackBerry Ltd., for enabling integrated control over the in-vehicle HMI devices.
Similarly, Otonomo Technologies Ltd. and Microsoft Corp. entered into a partnership with each other in September 2019 for developing the latter’s connected vehicle platform. The organizations, through this partnership, aim to improve the various services offered via the platform such as mapping, parking, on-demand fueling, emergency response, usage-based insurance, predictive maintenance, in-vehicle package delivery, and media measurement. Furthermore, under this partnership, the connected vehicle platform developed by Microsoft Corp would be incorporated for plugging the connected car data into the existing ecosystem of Otonomo Technologies Ltd.
Robert Bosch GmbH, NXP Semiconductors N.V., ZF Friedrichshafen AG., Panasonic Corp., Delphi Technologies PLC, Continental AG, , Infineon Technologies AG, DENSO CORP.,Valeo SA, and TE Connectivity Ltd.are some of the major market players.