Connected Car Market by Service ICE & EV (OTA, Navigation, Multimedia Streaming, Social Media, eCall, Autopilot, Remote Diagnostics, Home Integration), Market (OEM, Aftermarket), Network, Form, Transponder, Hardware and Region - Forecast to 2030

The connected car market is estimated to grow from USD 12.4 billion in 2024 to USD 26.4 billion by 2030, at a CAGR of 13.3%.

The global connected car market is primarily driven by the increasing demand for advanced safety features, enhanced user convenience, and seamless connectivity solutions. The rapid development of network infrastructure in key markets like China and India facilitates the integration of cutting-edge technology in vehicles. New car buyers are showing a strong preference for connected features, which is driving the market towards more innovative and tech-savvy solutions. The widespread adoption of smartphones and the decreasing cost of data plans make connected car technologies more accessible to a broader consumer base. Furthermore, the growing sales of electric and autonomous vehicles are fueling the demand for connected car technologies, shaping the future of automotive connectivity on a global scale.

Intelligent antennas in the hardware segment would be the fastest-growing market in the connected car market.

The intelligent antenna market is the fastest-growing segment in the connected car market, driven by the increasing demand for advanced safety features, comfort, and vehicle connectivity. Key players like HELLA GmbH & Co. KGaA (Germany), Robert Bosch GmbH (Germany), TE Connectivity (Switzerland), Continental AG (Germany), and Ficosa Group (Spain) are actively developing and integrating intelligent antennas into vehicles to support the growing demand for connected car features. Recent developments in the smart antenna market include the introduction of 5G-enabled antennas, which offer higher data transfer rates and lower latency, supporting applications like advanced driver-assistance systems (ADAS), and sophisticated infotainment systems.

This growing adoption of smart antennas is helping to solve the issues of traffic congestion and providing the best route, which is usually adopted high in embedded based passenger car. Considering the 5G connectivity in vehicle, In September 2021, BMW Group (Germany) and Telekom (Germany) launched in-car 5G connectivity and Personal eSIM networking options. This collaboration marks a significant milestone in integrating 5G technology into production vehicles, with the BMW iX being the first premium vehicle to offer 5G connectivity.

Infrastructure development, such as the growth of 5G networks, creates a conducive environment for the widespread adoption of intelligent vehicle antennas. For example, Verizon (US) has partnered with Robert Bosch (Germany) to develop a 5G-enabled traffic management system that uses intelligent antennas to collect real-time data on traffic conditions and road hazards. Governments and regulatory bodies support the development of connected car technologies through initiatives like allocating dedicated spectrum for vehicle-to-everything (V2X) communication. In the United States, in May 2023, the Federal Communications Commission (FCC) allocated a portion of the 5.9 GHz band for V2X communication, enabling the deployment of intelligent antennas for safety and efficiency applications.

Consumer demands for comfort, safety, and connectivity drive the adoption of intelligent vehicle antennas. OEMs respond to these demands by integrating advanced antenna systems into their cars, which can support various applications, including V2X communication, infotainment systems, and ADAS. For instance, BMW's (Germany) ConnectedDrive system uses intelligent antennas to provide drivers with real-time traffic information, remote services, and concierge assistance. The trend among OEMs is to offer advanced antenna systems as standard or optional features in their vehicles, particularly in the premium segment. The intelligent antenna market is expected to grow significantly, with the Asia Pacific region emerging as the fastest-growing market, driven by the increasing adoption of connected car technologies in countries like China and India.

Battery Electric Vehicle (BEV) holds the largest market for the connected car market.

The global market for connected car technology is witnessing a significant shift towards Battery Electric Vehicles (BEVs) as they are poised to hold the largest market share. This trend is fueled by the increasing adoption of BEVs worldwide. As familiarity with BEVs grows and more consumers experience the benefits of electric vehicles, the demand for connected car technology in BEVs is expected to surge.

This trend is evident from the rise in BEV consideration, which reached 38% in 2023, up from 35% in 2022. Government incentives and support have played a critical role in increasing BEV sales by making them more affordable and accessible to consumers. For example, In North America, incentives for purchasing electric vehicles (EVs) vary by country and state. In the US, there is a federal tax credit of up to USD 7,500 for new EVs, whereas in Europe, countries like the Netherlands offer a purchase subsidy of USD 3,200.

BEVs rely heavily on electronic systems to manage critical functions like battery charging, motor control, and energy optimization. These vehicles have many sensors, microcontrollers, and communication modules that work together to ensure efficient and safe operation. Embedded systems are ideally suited for these applications as they provide the processing power, connectivity, and real-time responsiveness required in BEVs. Moreover, the features of connected cars are becoming increasingly essential selling points for BEV buyers. Features like range estimation, charging station locators, and remote diagnostics are enabled by the embedded systems in the vehicle. These features enhance the driving experience and address concerns about electric vehicle ownership, making BEVs more attractive to consumers.

The increasing penetration of telecommunication services in the automotive industry also plays a significant role in driving the adoption of connected car technology in BEVs. Connecting vehicles to the network enables access to a wide range of safety features, real-time information, navigation assistance, and remote diagnostics. Integrating telecom services in BEVs enhances connectivity and functionality, making electric vehicles more appealing to consumers. Furthermore, the emergence of new technologies such as 5G and AI is expected to further boost the demand for connected cars, including BEVs.

These advanced technologies enable more seamless connectivity, faster data transfer, and enhanced features, making BEVs more attractive and technologically advanced. Additionally, stringent safety regulations, such as the implementation of eCall systems in Europe, drive the demand for connected car technology in BEVs. These regulations mandate the installation of emergency call systems in vehicles, which can be more effectively integrated into BEVs with connected car technology. Hence, the convergence of increasing BEV adoption, the importance of connected technology, telecom service penetration, technological advancements, and safety regulations are propelling BEVs to the forefront of the connected car market. As consumers recognize the benefits of connected BEVs and technology continues to evolve, the market for connected car technology in electric vehicles is set for substantial growth and innovation in the coming years.

Europe is the third fastest growing region in the connected car market.

This growth is driven by increasing consumer demand for advanced driver assistance systems (ADAS), in-car infotainment, and vehicle-to-everything (V2X) communication technologies. In 2020, around 12.3 million new cars sold in Europe were equipped with some form of connectivity, representing nearly 45% of all new car sales. This penetration rate is expected to rise sharply, with almost all new cars being connected by 2030.

Investments in the connected car ecosystem in Europe has been substantial, with significant funding directed towards research and development (R&D) and infrastructure. The European Union has allocated over USD 3.25 billion through various programs to support the development of connected and autonomous vehicle technologies. For example, the Horizon 2020 program has funded numerous projects focused on enhancing vehicle connectivity and autonomy. Moreover, private investments are also on the rise, with companies like Daimler and BMW investing billions in their connected and autonomous vehicle divisions. In 2021, Bosch announced a USD 1.08 billion investment in a new semiconductor plant in Dresden to produce chips essential for connected car technologies, underlining the region's commitment to maintaining technological leadership.

European governments are significantly contributing to the growth of the connected car market through supportive regulations and initiatives. The Cooperative Intelligent Transport Systems (C-ITS) directive supports the development and deployment of V2X communication technologies, enhancing road safety and transport efficiency. In 2020, the European Commission adopted a strategy for sustainable and smart mobility, aiming to extensively deploy automated and connected mobility solutions by 2030. This strategy includes substantial investments in infrastructure, such as 5G networks essential for real-time vehicle communication, and developing standards for autonomous vehicle testing and deployment.

Also, regional initiatives and collaborations are playing a pivotal role in the growth of the connected car market in Europe. Countries like Germany, France, and the UK are leading the charge with dedicated strategies and pilot projects. Germany's Autonomes Fahren initiative aims to make the country a global leader in autonomous driving by 2030, supported by investments in digital infrastructure and regulatory frameworks.

France has launched several smart mobility projects, such as the SAM (Safety and Acceptability of Autonomous Driving and Mobility) program, to test and validate autonomous vehicle technologies. Additionally, cross-border collaborations, such as the European Data Task Force, are working to harmonize data standards and enhance cooperation between countries, facilitating smoother deployment and operation of connected vehicles across the continent. These collaborative efforts are critical in addressing the technical and regulatory challenges associated with connected and autonomous vehicle technologies.

The break-up of the profile of primary participants in the connected car market:

• By Companies: Tier I - 30%, Software and hardware companies - 70%
• By Designation: Director level - 30%, C-Level Executives - 60%, Others - 20%
• By Region: North America - 10%, Europe - 40%, and APAC - 40%

Global players dominate the connected car market and comprise several regional players. The major players in the connected car market include Continental AG (Germany), Robert Bosch GmbH (Germany), Harman International (US), Visteon (US), and Airbiquity Inc (US).

Research Coverage:

By service (navigation, remote diagnostics, multimedia streaming, social media & other apps, OTA updates, on-road assistance, eCall & SOS assistance, remote operation, auto parking/connected parking, autopilot, home integration, and asset tracking); By end market (OEM and aftermarket); By form type (embedded and integrated); By hardware (head unit, central gateway, intelligent antenna, electronic control unit, telematics control unit, keyless entry system, and sensor); By transponder (onboard unit and roadside unit), By Network (DSRC and cellular), electric connected car market, by vehicle type (BEV, PHEV, and FCEV); By Region (Asia Pacific, Europe, and North America, and Rest of the World).

The report's scope covers detailed information regarding the major factors influencing the growth of the connected car market. A thorough analysis of the key industry players has provided insights into their business overview, products, key strategies, contracts, partnerships, agreements, new product launches, mergers and acquisitions, recession impact, and recent connected car market developments.

Key Benefits of Buying the Report:

The report will help market leaders and new entrants with information on the closest approximations of the revenue numbers for the connected car market and its sub-segments. It will also help stakeholders understand the competitive landscape and gain insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the market pulse and provides information on key market drivers, restraints, challenges, and opportunities.

The report provides insights on the following pointers:

• Analysis of critical drivers (Regulations mandating advanced features for enhanced user comfort, safety, and convenience; continuous developments in connected car technology and growing collaborations between OEMs and software & hardware providers; reduction in fuel consumption; increasing adoption of telematics and usage-based insurance; surge in premium vehicle demand), restraints (Lack of infrastructure for proper functioning of connected cars), opportunities (Emergence of various technologies, such as 5G and AI; developments in autonomous vehicles; developments of ride-sharing and mobility services), and challenges (Cybersecurity) influencing the growth of the connected car market.
• Product Development/Innovation: Detailed insights on upcoming technologies and new products launched in the connected car market.
• Market Development: Comprehensive market information - the report analyses the authentication and brand protection market across varied regions.
• Market Diversification: Exhaustive information about new products & services, untapped geographies, recent developments, and investments in the connected car market.
• Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players like Continental AG (Germany), Robert Bosch GmbH (Germany), Harman International (US), Visteon (US), and Airbiquity Inc (US). among others, in the connected car market.