The Europe Connected Cars Market was valued USD 10.63 billion in 2021, and shall surpass net valuation of USD 26.95 billion by 2027 while registering a solid CAGR growth of 16.2% during the Forecasts period (2022-2027).
The COVID-19 pandemic had a partial impact on the European-connected cars market. Although the stringent lockdown and social distancing norms affected the market indirectly by reducing the number of vehicle sales registered in 2020, the technical research that goes into implementing the system of the connected car was continued remotely. The pandemic has also forced people to prefer private transport, which is expected to raise car sales, worldwide, and consequently, the connected cars market.
Over medium-term as European Union has framed several regulatory frameworks and ambitious goals to boost connected car network, such favorable policies to have positive impact on the market. In April 2022, Data Act prosed by EU offers, set of principles required for accessing data from connected products. This includes right to access, share data and contractual business to business data exchange rights. These technological dominance and government frameworks is set to drive the demand for connected cars in EU.
There is a growing demand for connected car devices as they help monitor vehicles and drivers by exchanging critical information between nearby infrastructure and vehicles. Europe is home to many of the largest automotive technology manufacturers. Through smart platforms, IoT and telematics together have enhanced connectivity, communications, and responses that offer infotainment, safety, security, and increased vehicle management to drivers, passengers, and commuters.
European Union account almost 30% of the global connected car fleet. Europe is also known for its extensive technological OEMs, which work in domains, such as in-car entertainment, navigation, and in-car connectivity (for example, through Bluetooth), which have evolved rapidly over the last decade.
The automotive industry is crucial to Europe's GDP. The automotive sector provides for 6.1% of total EU employment, and with the rising demands for high-performing cars, connected cars marker may provide lucrative opportunities for manufacturers in Europe.
The advent of 5G is the most crucial for development of connected car market during the Forecasts period. This technology allows car owners to effectively communicate with other cars on the road, creating an unprecedented level of collaboration, which is impossible for human drivers. The fifth-generation wireless technology is expected to connect almost everything around us with an ultra-fast, highly reliable, and fully responsive network. 5G will allow us to leverage the full potential of advanced technologies such as artificial intelligence, virtual reality, and the Internet of Things (IoT). Thus, Companies are focusing on utilization and development of 5G in cars to gain competitive edge over other players in the market.
Increased availability of 5G networks across the region is expected to make it easier for connected cars to manage vehicle speeds, along smart motor highways and the future data source for vehicle-to-vehicle communication that may aid collision avoidance systems. Several use cases of 5G network connectivity implemented in cars in Europe indicate the growing demand for the connected cars market.
Internet of Things (IoT) has seen an exponential increase in terms of usage in the region. The different aspects of vehicles needing IoT as a technology base for connected cars, autonomous driving, and vehicle security have been on the rise and are projected to increase in the coming years during the Forecasts period.
Amoung all the European Union nations, Germany showcased itself as the major bedrock for rising demand ofr connected cars.
Various companies in the region are partnering with the other industry players to develop new technologies for autonomous vehicles. Most of the autonomous vehicles electric powertrain were being employed, which is good for countries to reach their emission targets.
New technologies, such as Artificial Intelligence and its subset, Machine Learning, Computer Vision, IoT, Cloud Technologies, Smart Robotics, and Mobility are fostering innovation in the connected and autonomous carindustry are well supported by grovernment to boost connected car sales.
Several auto makers in Germany are designing, testing, and manufacturing an autonomous/driverless car involves huge expenditure and hence companies are focusing on improving R&D by adopting various collaborations and agreements. This inturn has evelated the growth potential of connected cars market in EU.
The European connected cars market is moderately consolidated with existing players, such as Continental AG, Denso Corporation, Robert Bosch GmbH, Autoliv, Harman International, and Delphi Automotive LLP. As the demand for connected systems is growing in the region, the connected-car manufacturers are trying to have the edge over their competitors by making joint ventures and partnerships and launching new products with advanced technology. For Instance:
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The COVID-19 pandemic had a partial impact on the European-connected cars market. Although the stringent lockdown and social distancing norms affected the market indirectly by reducing the number of vehicle sales registered in 2020, the technical research that goes into implementing the system of the connected car was continued remotely. The pandemic has also forced people to prefer private transport, which is expected to raise car sales, worldwide, and consequently, the connected cars market.
Over medium-term as European Union has framed several regulatory frameworks and ambitious goals to boost connected car network, such favorable policies to have positive impact on the market. In April 2022, Data Act prosed by EU offers, set of principles required for accessing data from connected products. This includes right to access, share data and contractual business to business data exchange rights. These technological dominance and government frameworks is set to drive the demand for connected cars in EU.
There is a growing demand for connected car devices as they help monitor vehicles and drivers by exchanging critical information between nearby infrastructure and vehicles. Europe is home to many of the largest automotive technology manufacturers. Through smart platforms, IoT and telematics together have enhanced connectivity, communications, and responses that offer infotainment, safety, security, and increased vehicle management to drivers, passengers, and commuters.
European Union account almost 30% of the global connected car fleet. Europe is also known for its extensive technological OEMs, which work in domains, such as in-car entertainment, navigation, and in-car connectivity (for example, through Bluetooth), which have evolved rapidly over the last decade.
Key Market Trends
Introduction of 5G Network and Increased Use of IoT Applications
The automotive industry is crucial to Europe's GDP. The automotive sector provides for 6.1% of total EU employment, and with the rising demands for high-performing cars, connected cars marker may provide lucrative opportunities for manufacturers in Europe.
The advent of 5G is the most crucial for development of connected car market during the Forecasts period. This technology allows car owners to effectively communicate with other cars on the road, creating an unprecedented level of collaboration, which is impossible for human drivers. The fifth-generation wireless technology is expected to connect almost everything around us with an ultra-fast, highly reliable, and fully responsive network. 5G will allow us to leverage the full potential of advanced technologies such as artificial intelligence, virtual reality, and the Internet of Things (IoT). Thus, Companies are focusing on utilization and development of 5G in cars to gain competitive edge over other players in the market.
Increased availability of 5G networks across the region is expected to make it easier for connected cars to manage vehicle speeds, along smart motor highways and the future data source for vehicle-to-vehicle communication that may aid collision avoidance systems. Several use cases of 5G network connectivity implemented in cars in Europe indicate the growing demand for the connected cars market.
Internet of Things (IoT) has seen an exponential increase in terms of usage in the region. The different aspects of vehicles needing IoT as a technology base for connected cars, autonomous driving, and vehicle security have been on the rise and are projected to increase in the coming years during the Forecasts period.
Germany to Remain Epi-Centre for Connected Car Market Growth
Amoung all the European Union nations, Germany showcased itself as the major bedrock for rising demand ofr connected cars.
Various companies in the region are partnering with the other industry players to develop new technologies for autonomous vehicles. Most of the autonomous vehicles electric powertrain were being employed, which is good for countries to reach their emission targets.
New technologies, such as Artificial Intelligence and its subset, Machine Learning, Computer Vision, IoT, Cloud Technologies, Smart Robotics, and Mobility are fostering innovation in the connected and autonomous carindustry are well supported by grovernment to boost connected car sales.
Several auto makers in Germany are designing, testing, and manufacturing an autonomous/driverless car involves huge expenditure and hence companies are focusing on improving R&D by adopting various collaborations and agreements. This inturn has evelated the growth potential of connected cars market in EU.
- In May 2022, Mercedes got a huge order for Level 3 self driving vehciles from its consumer base. The vehicles is equipped with drive pilot mode which shall enable the key featyres of connected acrs and driveless car features.
Competitive Landscape
The European connected cars market is moderately consolidated with existing players, such as Continental AG, Denso Corporation, Robert Bosch GmbH, Autoliv, Harman International, and Delphi Automotive LLP. As the demand for connected systems is growing in the region, the connected-car manufacturers are trying to have the edge over their competitors by making joint ventures and partnerships and launching new products with advanced technology. For Instance:
- In May 2022, Harman and Amazon announced that there are working under constructive alliance to develop secure and reliable connected vehicle solutions. The development of advanced software defined vehicles shall help the several challenges faced by OEM in terms of safety and reliability.
- In March 2022, Denso Corporation organized software innovation program under its new mobility-centered society. The training program included ADAS vision sensor recognition technology and voluntary activities to train cloud computing engineers.
- In October 2021, GENIVI Alliance, a collaborative firm which is developing open standards and software for in-vehicle transmission systems, announced that its organizational rebrand of Connected Vehicle Systems Alliance (COVESA). This new brand shall signify company's emerging technical focus towards connected vehicle systems which includes in-vehicle, in-cloud and on-edge services.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
This product will be delivered within 2 business days.
Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION (Market Size in Value USD Billion)
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Continental AG
- Denso Corporation
- Robert Bosch GmbH
- Autoliv Inc.
- Harman International
- Delphi Automotive LLP
- Audi AG
- BMW Group
- Diamler AG
- Verizon Communication
Methodology
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