DUBLIN, January 25, 2022--(BUSINESS WIRE)--The "Connected Car Market by Service ICE & EV (OTA, Navigation, Cybersecurity, Multimedia Streaming, Social Media, e-Call, Autopilot, Home Integration), Form, Market (OE, Aftermarket), Network, Transponder, Hardware and Region - Global Forecast to 2026" report has been added to ResearchAndMarkets.com's offering.
The global connected car market is projected to reach USD 57.6 billion by 2026 from an estimated USD 24.0 billion in 2021, at a CAGR of 19.1% from 2021 to 2026.
All major carmakers, such as Ford, BMW, Audi, Volvo, Hyundai, and Toyota, offer some form of connectivity in their vehicles.
Connected cars ease connectivity on wheels, offering comfort, convenience, performance, safety, and security along with powerful network technology. This enables the driver to connect with online platforms, thereby facilitating real-time communication.
The rise in consumer demand for connectivity solutions, a surge in the need for constant connectivity, an increase in the dependency on technology, and the growing tech-savvy population are the key factors contributing to the growth of the connected car market.
However, the lack of proper communication infrastructure in developing countries will restrict the connected car market growth in the coming years.
Demand for high capacity ECUs due to an increase in electronic components in a connected car is expected to drive the ECU hardware market during the forecast period
The ECU plays a critical role in the connected car system and helps control different electronic systems of connected cars. The data generated through the hardware components are integrated into the ECU and transmitted to the cloud platform. Due to an increase in the number of electronics systems, the number of ECUs has increased, and thus, the demand for ECUs is growing in the connected car market.
However, and the increasing number of ECUs per vehicle reduces efficiency, various automotive giants are collaborating with OEMs to consolidate ECUs without affecting the functionalities. The key purpose of ECU consolidation is to converge various ECUs into a single, advanced ECU that can control multiple hardware functions.
The aftermarket segment is expected to register the highest CAGR within the connected car market
The demand for connected car services in the aftermarket is expected to increase in the near future due to technological advancements and an increase in demand for safety and comfort features in cars. Also, launches of aftermarket connected car platforms are expected to drive aftermarket.
For instance, in 2017, HARMAN announced an Aftermarket Connected Automotive Platform that can support connected applications and transform any existing vehicle into a smart connected car, including those lacking pre-installed connectivity capabilities. The new solution is available to automotive OEMs, dealers, specialty automotive retailers, and mobile carriers.
The Asia Pacific market is projected to register the highest CAGR during the forecast period
The Asia Pacific connected car market is projected to register the highest CAGR during the forecast period. Japan is one of the major markets as the penetration of connected cars is at a mature stage. One of the key drivers for the Asia Pacific connected car market is the increased demand for infotainment and navigation services, particularly in China, Japan, India, and South Korea. The tech-savvy population in these countries demands a better and connected driving experience.
The growing popularity of premium and luxury vehicles is also expected to drive the growth of the connected car market in this region. The penetration of connected cars is at a nascent stage in countries such as India and Thailand. With the deployment of 5G infrastructure, the popularity of connected car services is expected to grow.
The connected car market comprises major manufacturers such as Continental (Germany), Bosch (Germany), HARMAN (US), Airbiquity (US), and Visteon (US).
Asia-Pacific Will be the Major Market for Connected Car Market
Embedded Form of Connectivity Can be a Key Focus for Manufacturers
Regulations Mandating Advanced Features for Enhanced User Comfort, Safety, and Convenience is Expected to Drive Popularity of Connected Cars
Continuous Developments in Connected Car Technology and Growing Collaborations Between Oems, Software and Hardware Providers
Reduction in Fuel Consumption
Increasing Adoption of Telematics and Usage-Based Insurance is Expected to Drive Connected Cars
Lack of Infrastructure for Proper Functioning of Connected Cars
Emergence of Various Technologies Such as 5G and Ai
Developments in Autonomous Vehicles
Developments of Ride Sharing and Mobility Services
Impact of COVID-19 on Connected Car Market
Revenue Shift Driving Market Growth
Connected Car Market, Scenarios (2018-2026)
Most Likely Scenario
High COVID-19 Impact Scenario
Low COVID-19 Impact Scenario
Case Study Analysis, by Cognizant
Average Selling Price Analysis
Porter's Five Forces Analysis
Ford Motor Company
Other Key Players
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