The global connected car market is expected to grow from an estimated USD 37,223 million in 2024 to USD 118,352 million by 2034, with a CAGR of 12.3%. The automotive sector has seen significant progress in recent years, with major investments focused on advancing AI and enhancing connectivity features in vehicles.
The connected car market is rapidly evolving as technological advancements continue to transform the automotive industry. Connected cars, equipped with internet access, telematics, and advanced driver assistance systems (ADAS), are revolutionizing the driving experience by offering enhanced safety, convenience, and entertainment features. These vehicles can communicate with each other, infrastructure, and the cloud, creating a seamless driving experience that is both smart and efficient.
In addition to improving vehicle performance and safety, connected cars are integral to the development of autonomous vehicles, electric vehicles (EVs), and smart city infrastructures. The market is driven by the growing consumer demand for enhanced connectivity, seamless integration with mobile devices, and real-time data services. Additionally, the increasing focus on reducing traffic congestion, improving road safety, and achieving environmental sustainability is further fueling the adoption of connected car technologies.
With the rise of 5G networks, artificial intelligence (AI), and the Internet of Things (IoT), connected cars are expected to become even more intelligent and integrated into our daily lives. The growing need for in-car entertainment, navigation, and driver assistance systems, coupled with regulatory support for vehicle connectivity and safety, is likely to drive the market forward in the coming years.
In-Depth Market Analysis: A Complete Report
Key Drivers of the Connected Car Market:
- Increasing Consumer Demand for In-Car Connectivity: Drivers are increasingly seeking vehicles that offer seamless connectivity, including entertainment, navigation, and real-time data services, driving the growth of the connected car market.
- Advancements in 5G Technology: The rollout of 5G networks is enabling faster and more reliable vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, enhancing the performance and capabilities of connected cars.
- Growing Focus on Vehicle Safety and ADAS: The demand for advanced driver assistance systems (ADAS) is rising, as consumers seek safer driving experiences, further driving the need for connected technologies that support autonomous driving.
- Government Regulations and Safety Standards: Increasing regulatory requirements related to vehicle safety, environmental sustainability, and connectivity are encouraging automakers to integrate more connected features into their vehicles.
- The Rise of Electric and Autonomous Vehicles: As the automotive industry shifts towards electric and autonomous vehicles, connected car technologies are becoming an essential component in their development, providing real-time data and communication capabilities.
Key Takeaways:
- Enhanced Driving Experience: Connected cars offer a range of benefits, including improved safety, convenience, and real-time services like navigation and entertainment, significantly enhancing the driving experience.
- Safety and Security: The adoption of ADAS and vehicle-to-vehicle communication technology is making roads safer by reducing accidents and supporting the transition towards autonomous driving.
- Seamless Integration with Smart Devices: Connected cars are becoming more integrated with smart devices, enabling users to control their vehicles remotely and sync them with mobile apps for a personalized experience.
- Key Technological Innovations: Advancements in 5G, AI, IoT, and telematics are making connected cars more intelligent, enabling better communication between vehicles, infrastructure, and cloud services.
- Sustained Market Growth: With the growing focus on vehicle safety, convenience, and sustainability, the connected car market is poised for significant growth, driven by consumer demand and technological advancements.
Competition Outlook
Collaboration between connectivity and advanced safety features enables real-time data exchange, empowering vehicles to communicate with each other and with infrastructure. Manufacturers are working on developing high-end features to ensure that the car interface provides the best driving experience. Big companies are opening research units, paving the way for a safer and technologically sophisticated driving future.
Industry Updates
- In January 2024, Samsung and Hyundai collaborated on connected cars, integrating the SmartThings platform with Hyundai and Kia vehicles. Users could control appliances and car systems remotely, managing tasks like starting the vehicle or adjusting home settings through a single app.
- In March 2024, Vero and Privacy4Cars launched Identi-FI, a data privacy solution for connected cars. This partnership provided privacy tools and identity protection services, including data deletion and identity theft recovery, offering a comprehensive solution for both dealerships and consumers.
- In March 2024, Kia India sold 400,000 connected cars, with these variants constituting over 44% of the company’s domestic dispatches. Kia India’s Connected Car variants grew at a remarkable 30.9% CAGR, surpassing the global growth forecast of 18% by 2032.
Leading Connected Car Brands
- Morris Garage Motor India
- Bosch
- Maruti Suzuki
- Payment24
- Airbiguity
- Harman International
- Continental AG
- Daimler AG
- General Motors
- Hyundai Motor Group
- Volvo
- Ford Motor Company
- Audi
Key Segments of Market Report
By Network Technology:
Network technology present in the industry are 3G, 4G, and 5G.
By Communication Type:
V2V, V2I, and V2P are categorized as communication types in this sector.
By Application:
Connected car finds application in to driver assistance, vehicle safety and security, infotainment, telematics, and navigation applications.
By Vehicle Type:
ICE and electric are two vehicle types in this industry.
By Region:
A regional analysis has been carried out in key countries of North America, Latin America, Asia Pacific, Middle East and Africa (MEA), and Europe.
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