The global Connected Cars Market size is estimated to surpass $170.5 billion mark by 2026 growing at an estimated CAGR of more than 14.4% during the forecast period 2021 to 2026. The market is driven by progress in level of autonomous technology and dictate usage of 4G technology embedded in the car, and 5G coverage rollout will become ubiquitous. This game-changing concept is called as “Connected Car”, where the car is suitably defined as a vehicle using mechatronics, telematics and artificial intelligence technologies to interact with the environment. This provides greater safety, comfort, entertainment and, importantly a connected life experience. Rising demand for Vehicle Management, Advanced Driver Assistance Systems and fleet management is projected to drive market growth. Over the last few years, automotive electronics and wireless technologies have grown by leaps and bounds. Advancement in these technologies combined with device convergence and changing lifestyle demands are enabling the automobile to extend the driving experience beyond traditional vehicle transport.
- The Global OEMs have rapidly boosted innovation in the area of safety. The finding stated, the number of accident prevention technology has increased by more than 500%, and Advanced Driver Assistance System (ADAS) innovation by 400%, over the eight years. The first benefit is driving getting safer, with active collision warning technology recognize pedestrian and active cross traffic assistant systems that can prevent very serious accidents. With V2V (vehicle-to-vehicle) communication becoming a reality, Diamler’s new Mercedes E-Class, is an example.
- Second factor is driving is getting more convenient, due to improved human-machine interfaces can now use natural language processing to control many of car’s functions, and further advances in ADAS will continue to make driving easier. For example, BMW 7 Series offers the garage parking assistant, and Tesla recently introduced its Summon feature. Mostly the continuous advances in autonomous driving is essentially expected by car manufactures and players like Google and Tesla.
- The current development process for security software involves binding it to the car’s hardware. As a result, updating the software will set to support functions, including risk management, progress monitoring and reporting, and incident management, all of these must also be put in place if the software development effort is to succeed.
Connected Car Device Market Segment Analysis – By Connectivity Type
Connected Car Device Market Segment Analysis – By End Market
Connected Car Device Market Segment Analysis – By Geography
Connected Cars Market Drivers
New Technologies driving Connected Car Penetration
Rise of V2X and Telematics
Connected Cars Market Challenges
Data Security Challenges
Connected Cars Market Landscape
- In February 2020, Microsoft and Bosch partnered to build a connected car software platform. The platform will run on technology giant’s cloud service, and have software modules from the German auto component maker.
- In March 2019, Alibaba AI Labs partnered with major automotive OEMs to supply technology for home-to-vehicle such as Daimler, Volvo, and Audi AG.