Worldwide Connected Car Industry to 2025 - Featuring Continental, Bosch & Harman Among Others - ResearchAndMarkets.com

The "Connected Car Market by Service (OTA Update, Navigation, Cybersecurity, Multimedia Streaming, Social Media, e-Call, Autopilot, Home Integration & Other), Form, End Market (OE, Aftermarket), Network, Transponder, Hardware and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

The global connected car market is projected to reach USD 166.0 billion by 2025, from USD 53.9 billion in 2020.

All car makers such as Ford, BMW, Audi, Volvo, Hyundai, and Toyota offer some 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, surge in need for constant connectivity, increase in dependency on technology, and an upsurge in the tech-savvy population are the key factors that contribute toward the growth of the connected car market. However, lack of proper communication infrastructure in developing countries will restrict the connected car market 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 for the connected car market.

However, the increasing number of ECUs per vehicle reduces efficiency, and various automotive giants are collaborating with OEMs to consolidate ECUs without affecting the functionalities. For instance, in 2017, Sasken Technologies Ltd. demonstrated its hypervisor-based consolidator that virtualizes infotainment and cluster systems. 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 grow at the highest CAGR rate 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. According to a survey, the willingness to pay a subscription fee for connected services went from 21% in 2014 to 32% in 2015. Social media, live traffic, weather updates, and automatic emergency calling are the primary services for which customers are willing to pay monthly.

The North American market is expected to register the fastest growth during the forecast period

The North American connected car market is estimated to be the fastest. In North America, the US and Canada are economically stable and have a higher standard of living and disposable income, which leads to the demand for high-end connected car services and connectivity solutions. Infrastructure availability in the US attracts the global OEMs and Tier I to test and develop fully connected autonomous vehicles, and supportive government policies help them test vehicles on the road.

As people have high standards of living and disposable income in these countries, they would like to spend more on safety and comfort features. The demand for self-driving cars in the US is resulting in OEMs introducing advanced connected car technologies that are expected to drive the North American connected car solution and services market.

Market Dynamics

Drivers

• Increased Demand for Enhanced User Comfort, Safety, and Convenience
• Reduction in Fuel Consumption

Restraints

• Lack of Infrastructure for Proper Functioning of Connected Cars

Opportunities

• Emergence of Various Technologies Such as 5G and Ai
• Increasing Popularity of Automation in the Automotive Sector
• Developments of Ride Sharing and Mobility Services

Challenges

• Cybersecurity

Companies Profiled

• Continental
• Bosch
• Harman
• Visteon
• Airbiquity
• Cloudmade
• Intellias
• Tesla
• Ford Motor Company
• Audi
• AT&T
• Qualcomm
• Verizon Communication
• Tomtom
• Sierra Wireless
• Panasonic
• Tech Mahindra
• Microsoft Azure
• Zubie
• Bmw
• Daimler
• Telefonica
• Luxoft

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