Connected Car Market size exceeded USD 23.63 Billion in 2023 and is anticipated to cross USD 195.5 Billion by 2033, registering a CAGR of more than 27.72% during the forecast period. As automakers and technology firms spend in R&D to improve vehicle connectivity and develop new services and income streams, the connected car market has been expanding significantly. The market comprises both aftermarket solutions for current vehicles and original equipment manufacturers (OEMs) adding connection capabilities into new vehicles.
The connected car market represents a major change in the automotive sector, enabling future mobility solutions like autonomous driving and intelligent transportation networks while also improving safety, convenience, and efficiency. The development of wireless communication technologies, including 5G networks, has been essential in enabling dependable and fast connectivity for automobiles. The performance of connected car applications is improved, and real-time data interchange is made possible by faster and more reliable networks.
Growth Drivers & Opportunities:
Increasing adoption of anti-theft systems is propelling the market
Anti-theft systems are essential for maintaining the safety and security of automobiles. Customers are growing increasingly anxious about securing their vehicles as a result of the rise in vehicle thefts and the sophistication of theft tactics. As a result, there is a rising need for cutting-edge anti-theft systems that can offer improved security features. Customers that place a high priority on vehicle security are being drawn in by the availability of such cutting-edge anti-theft technology in linked automobiles. Car owners feel more in charge of their vehicle's safety and have peace of mind due to the ability to monitor and operate their automobiles via mobile applications or other linked devices.
Rise in the adoption of ADAS to drive the market
Another factor propelling the connected car market is the increase in the use of Advanced Driver Assistance Systems (ADAS). The need for connected automobiles is being driven by the growing usage of ADAS by both automotive manufacturers and consumers. More drivers are looking for cars with ADAS as they become more aware of the convenience and safety advantages these cutting-edge systems offer. This in turn encourages users to choose connected automobiles in order to take advantage of the full potential of these technologies, and manufacturers to build ADAS capabilities into their vehicles.
Report Coverage | Details |
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Segments Covered | Technology, Connectivity, Application, Distribution Channel |
Regions Covered | • North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA) |
Growth Drivers | 1.Increasing adoption of anti-theft systems 2.Rise in the adoption of ADAS |
Company Profiled | Bosch, Continental AG, Delphi Technologies PLC, DENSO Corporation, Harman International Industries, Inc, Infineon Technologies AG, NXP Semiconductors N.V., Toyota Motor Corporation, Valeo, and ZF Friedrichshafen AG, BorgWarner |
Industry Restraints & Challenges
Hackability of vehicles to restrain the market
The potential hacking of connected cars could impede the market's expansion for connected vehicles. Vehicles are more susceptible to cybersecurity attacks as they become more connected, dependent on the internet, and used to connecting to outside networks.
Asia Pacific Market
Asia Pacific is anticipated to dominate the connected car market from 2024 to 2033. The industry has expanded as a result of factors such expanding urbanisation, rising disposable income, and technological improvements. Advanced driver assistance systems (ADAS) and 5G networks are only two examples of the considerable improvements in communication technologies that have taken place in the region. These technologies are essential for ensuring smooth communication between infrastructure, other devices, and vehicles.
North American Market
North America is witnessing the fastest market growth between 2024 to 2033. Due to the rising need for cutting-edge car features, the presence of major automotive manufacturers, and a clientele with a keen interest in technology, the region has experienced significant growth.