Vehicles indulge in detecting driving patterns and understanding human emotions to offer an enhancing driving experience and saving lives are termed as connected cars. Connected cars have the ability of interpreting human behavioral pattern such as applying brakes, drifting and accelerating to protect from potential danger. With a powerful network technology backup, connected cars facilitate the driver in connecting with online platforms and offering real time communication. Considered to be the future of automobile industry, connected cars are specialized in wireless LAN devices, ADAS (Automated Driver Assistance System) and safety solutions. Smart phones and other mobile devices act as a medium in connecting cars via the connected car technology. With technological innovation at its peak, the demand for electric vehicles is increasing rapidly over the years which in turn are expected to drive the connected cars market through the forecast period significantly.
The Connected vehicles market is expected to grow at a CAGR of27.5% through the forecast period with current valuation at $48.61bn in 2017. Connected cars market is effluent in providing opportunities to telecom and automotive industries which is likely to augment the growth of the market in the upcoming years. With time, service providers and car manufacturers have developed various connectivity solutions such as M2M (Machine to machine) platform indulged in interconnectivity of 2 cars. Certain processors and sensors present in the cars provide real-time and accurate information to driver. Two prominent features of connected cars involved in enhancing the market growth are advanced infotainment systems and faster connectivity to wireless network. Apart from increased technological dependency and rising consumer needs, two other factors as in increasing number of tech savvy individuals and the need for constant connectivity is likely to propel the growth of the market.
Connected vehicles market can be segmented basis on its widespread application over Infotainment, Telematics and combined infotainment & telematics. Components of telematics including remote diagnosis, fleet management, eCall and usage based insurance is expected to rise at the highest CAGR in the upcoming years. Alongside, rapid urbanization, stringent government policies and intelligent transportation systems is expected to drive the connected cars market rapidly through the forecast period. A few components of semiconductor segment include DSPs, microcontrollers and memory chips among others which hold the market share of connected cars significantly. Major semiconductor organizations such as Intel Corporation, Micron Technology, Texas Instruments etc. in tie up with automobile manufacturers such as Ford Motors Company and General Motors Company among others is likely to augment the market growth along with increased adoption of infotainment and telematics applications. Technology collaborations and agreements are key strategies adopted by certain players in the mentioned market. For instance, TomTom offers turn-by-turn navigation services for customers making network connectivity feasible. Other car connected platforms include Android auto, Mirrorlink, Qnx, Carplay among others.
North America stands out to be the leader in connected vehicles market for holding the major shares on a global basis and is expected to remain the same through the forecast period. Certain regulatory mandates on telematics application along with rising infrastructure add on to the growth of the connected cars market in the specified region. Increasing demand of electric vehicles is likely to boost the European market majorly in the upcoming years. Furthermore, widespread adoption of wireless technologies and mobiles in the European markets along with stringent government policies for vehicle safety and advanced road infrastructure and telecom adds on to the connected cars market growth through the forecast period. APAC region is also likely to experience a moderate growth owing to rapid population growth, large presence of youth and rising disposable income.
Some of the major players involved in connected cars market are BMW, GM, Ford, Tesla, JLR, Denso Corporation, Airbiquity Inc., Volvo Car Corporation, Google, Inc., Delphi Automotive Plc among others.
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