The global connected car market is expected to grow from $25,263.3 million in 2014, and reach $137,780.8 million by 2020, growing at a CAGR of 26.9% during 2015 – 2020. The global connected car market, comprising sensors, processors, wireless & cellular modules, fleet manager, OEM services and aftermarket services is driven by the availability of fast and advanced communication & connectivity solution. With the enhancement for safer driving experience fueled with favorable rules & regulations in different countries would also favors the growth of connected car market across various geographic regions.
The adoption of connected car in North America is high owing to the widespread connectivity solutions and ease in availability of products and services with government regulations for driver safety. The European region is showing huge market potential for the adoption of connected car. This growth is highly complimented with the eCall regulations, mandated by the European Parliament for the installation of eCall systems in the cars manufactured from the year 2015. Other regions such as Asia-Pacific would become the prominent market for connected cars owing to high growth in automotive market and enhancing connectivity infrastructures.
The advancement in infotainment systems and increasing connectivity through wireless networks are the two main factors, which would help enhancing the market growth for connected cars. Furthermore, rising consumer demands in accordance with growing number of tech savvy people, increasing dependency on technology related products and enhancing connectivity options, would also act as growth factors for connected car market. On the other hand, some of the restraints associated with connected cars are the additional expenses borne by the consumer for availing the connected car service, threat of hackers breaching the security and accessing data or causing nuisance to the cars system, non-availability of uninterrupted & seamless connectivity and lack of awareness among consumers in certain regions.
Geographically, North America dominated the global connected car market in 2014; whereas the Asia-Pacific market is expected to witness the fastest growth of 29.9% CAGR, during the forecast period. Technology agreements and collaborations are the key strategies adopted by the market players to enhance their market share. For instance, AT&T is working with automotive manufacturers to provide contextual voice controls, which would help to create a safer driving experience. TomTom launched the online turn-by-turn navigation service for customers, making it feasible to connect over a network. The introduction of automobiles equipped with advanced connectivity options is expected to positively impact the growth of the global connected car market.
The connected car market is consolidating with large number of collaborations taking place. The collaborations have enhanced the continuous product offerings in order to share the knowledge and technology at one platform. The key competitors in the global connected car market include Harman, AT&T Inc., TomTom, Telefonica, Verizon, Ford Motors Co., Mercedes Benz, BMW AG and Audi AG.
News Courtesy: P&S Market Research