Europe Connected Car Market Outlook, 2029

Europe is at the forefront of automotive innovation, using state-of-the-art technology to completely transform the driving experience. The integration of connectivity into automobiles is driving a major revolution in the automotive environment on the continent. The advent of linked automobiles heralds a sea change in the automotive sector by offering increased efficiency, convenience, and safety on European roads. The market for connected cars is expanding exponentially in Europe due to a number of factors, including the development of digital infrastructure, changing customer tastes, and strict regulatory frameworks.

Increasingly focusing on smart mobility solutions and sustainability, European automakers are using connections to drive industry advancement. The widespread deployment of Internet of Things (IoT) technology is one of the main factors contributing to the spike in linked automobile adoption. Through the integration of onboard sensors and internet connectivity, automakers are opening up a world of cutting-edge features and services. The way people engage with their automobiles is being revolutionized by connected cars, which offer features like remote diagnostics, vehicle-to-vehicle communication, real-time navigation, and traffic updates. Leading European automotive hubs, including Germany, France, and the United Kingdom, are at the forefront of connected car innovation. Reputable for their engineering expertise, German automakers are leading the way in incorporating connections into their cars. As they introduce cutting-edge entertainment systems, telematics, and autonomous driving capabilities, automakers like Mercedes-Benz, BMW, and Volkswagen are pushing the boundaries of the industry. Europe's connected cars sector is seeing a boom in innovation from startups and tech companies, in addition to the conventional automotive giants. In the automobile industry, a wide range of firms are entering, from electric vehicle (EV) startups like Tesla to IT behemoths like Google and Apple, spurring competition and innovation. Moreover, the regulatory framework in Europe is significantly influencing the development of the connected automobile industry. The strict requirements imposed by the European Union on car emissions, safety standards, and data privacy are pushing automakers to give connectivity and digitalization top priority. In the age of connected cars, initiatives like the General Data Protection Regulation (GDPR) are making sure that consumers' rights to data privacy are protected.

According to the research report "Europe Connected Cars Market Outlook, 2029,", the Europe Connected Cars market is expected to add more than USD 20 Billion from 2024 to 2029. Europe has a strong digital infrastructure that includes sophisticated telecommunications networks and extensive broadband coverage. With the help of this solid foundation, connected cars can connect seamlessly and use capabilities like vehicle-to-vehicle communication, over-the-air software updates, and real-time navigation. In order to improve urban mobility and transportation systems, European communities are embracing smart city initiatives and utilizing connectivity and IoT technology.

In these endeavors, connected automobiles are essential for managing traffic, reducing congestion, and promoting sustainable urban growth. Numerous connected mobility solutions have been developed as a result of Europe's diversified topography and transportation requirements. European automakers have a wide range of connected cars to choose from, ranging from robust off-road SUVs to small urban electric vehicles, all of which are designed to cater to the different demands of customers throughout the continent. Research and development for automobiles is centered on Europe, which draws talent and capital from all over the world. Europe is home to several significant automotive research institutes, academic institutions, and innovation clusters that are propelling advances in connected car technology, autonomous driving, and mobility services. Mobility-as-a-Service (MaaS) platforms are becoming more and more popular in Europe. These platforms use connectivity to provide integrated transportation solutions. MaaS platforms give users easy and adaptable mobility alternatives by combining many means of transportation, such as public transportation, ride-sharing, bike-sharing, and car-sharing, into a single digital platform.

Major Drivers

Advancements in digital infrastructure: Europe's digital infrastructure innovations are a major factor propelling the market for connected cars. The area has a strong data infrastructure, sophisticated telecommunications networks, and extensive internet coverage, all of which provide the foundation for seamless connectivity in cars. European car buyers anticipate their vehicles to be fully connected to the digital environment, allowing services like over-the-air software upgrades, remote diagnostics, and real-time navigation. This is because high-speed internet connections are becoming more commonplace. Additionally, Europe's digital infrastructure makes it easier to link outside of cities, reaching rural areas and improving the accessibility of connected cars all throughout the continent.

Consumer preferences and demands: The adoption of connected cars in Europe is being driven by changing consumer needs and preferences. Automakers are incorporating cutting-edge digital technologies into their vehicles as a result of modern consumers placing a growing emphasis on sustainability, connection, and ease of use when selecting a vehicle. European auto buyers now anticipate standard features like voice assistants, in-car entertainment systems, and smartphone connections, which is increasing demand for connected automobiles that provide seamless digital experiences. Moreover, as consumers look for safer and more hygienic transportation options, the COVID-19 epidemic has pushed the adoption of connected cars. The pandemic has increased demand for connected cars with improved safety, convenience, and connectivity capabilities by highlighting the significance of digital connectivity in enabling remote work, contactless transactions, and virtual experiences.

Major Challenges

Regulatory complexity: The regulatory complexity that exists in the European connected car market is one of the main obstacles that the market is experiencing. Automotive manufacturers must adhere to strict guidelines surrounding the collection, storage, and sharing of data, even as laws like the General Data Protection Regulation (GDPR) protect consumers' privacy and security. The development and implementation of connected car technologies are made more difficult and expensive by complying with these requirements, especially when it comes to handling data permission, anonymization, and cross-border data transfers. In order to make matters more complicated, different European countries have different regulations, so automakers have to navigate a patchwork of frameworks to guarantee compliance in various markets.

Cybersecurity risks: Cybersecurity risks affect connected automobiles more and more as they depend more on digital technology and internet access. Cyber threats that target linked automobiles may compromise vehicle control systems, steal confidential information, or interfere with the provision of necessary services, all of which present serious hazards to safety and privacy. Robust cybersecurity solutions, such as encryption, intrusion detection systems, secure software upgrades, and cooperation with cybersecurity specialists and regulatory authorities, are necessary to address cybersecurity threats in connected cars.

Based on technology segment market is divided into 4G/LTE, 3G, and 5G. Among them market is majorly dominated by 4G/LTE technology segment with significant market share. The connectivity solutions segment of the market includes integrated, embedded and tethered. Integrated connectivity solutions segment is expected to lead the Europe connected cars market

Europe has a robust 4G/LTE network infrastructure that covers a large portion of both urban and rural areas. As of the network's dependability and availability, automobile manufacturers may more easily incorporate 4G/LTE connectivity into their vehicles and offer connected car services to a wider audience. With its fast data transfer speeds and low latency, 4G/LTE technology is perfect for providing bandwidth-intensive connected car services like over-the-air software upgrades, multimedia streaming, and real-time navigation. The user experience is improved, and seamless integration with other IoT devices and services is supported by the dependability and performance of 4G/LTE connectivity.

In Europe, 4G/LTE technology has matured to the point where it is widely used, offering connected automobiles a reliable and tested solution. Both customers and automakers are familiar with 4G/LTE technology, reducing barriers to adoption and facilitating the integration of connected car features into new vehicle models. The infotainment system and dashboard interface of the car are immediately enhanced with connectivity capabilities through integrated connectivity solutions, which provide a smooth and easy-to-use interface. Drivers and passengers may now use voice assistants, audio streaming, and navigation without requiring extra devices or apps, thanks to this integration. Automakers may now collect useful information about driver behavior, vehicle performance, and usage trends thanks to integrated connection solutions. Subscription services, targeted advertising, and joint ventures with other service providers are some of the ways that this data might make money. The value proposition of connected automobiles can be improved, and new revenue streams can be created by OEMs through the use of data analytics and revenue strategies.

Based on application segment market includes driver assistance, safety, infotainment, telematics, fleet management (vehicle), mobility management and others. Driver assistance segment is expected to remain major application for connected cars in Europe connected cars market. Based on end market segment market includes original equipment manufacturer (OEM) and aftermarket. OEM is expected to remain major end market for connected cars in Europe.

Connectivity is used by driver assistance systems to improve road safety by giving drivers real-time alerts, warnings, and help. These systems assist drivers in reducing risks and preventing accidents by providing features including adaptive cruise control, blind-spot monitoring, forward collision warning, and lane departure warning. In order to give drivers more precise and timely assistance, these features can access additional data sources, such as traffic conditions and road infrastructure, by utilizing connections. The development and application of autonomous driving technologies - which seek to automate many driving tasks and lessen the need for human intervention - are greatly aided by connected automobiles.

Driver assistance systems serve as building blocks for autonomous driving, providing functionalities such as adaptive cruise control, lane-keeping assistance, and automated parking. OEMs are at the forefront of implementing connected car technology into new vehicles as standard features. They create and build automobiles with built-in connectivity features, such as infotainment systems, telematics units, and embedded communication modules. OEMs enable seamless integration, reliability, and compatibility with other vehicle systems by including connectivity directly into the car's architecture. OEMs, as the principal providers of connected automobiles, have complete control over the data generated by these vehicles and the customer connections that accompany them. OEMs can use vehicle data to obtain insights into customer behavior, preferences, and usage patterns, allowing for targeted marketing, personalized services, and data-driven decision-making. By retaining direct contact with clients, OEMs can grab a greater piece of the value chain and retain control over their brand image and reputation.

Based on report market includes six major countries Germany, United Kingdom, France, Italy, Spain and Russia. Germany is expected to dominate the Europe connected cars market during the forecast period.

Germany is home to some of the most well-known automakers in the world, such as Mercedes-Benz, BMW, Volkswagen, Audi, and Porsche. Germany is the world leader in the production of automobiles, thanks to these companies' long history of engineering brilliance and invention. Germany is well-positioned to lead the development and implementation of connected automobile technology because of its strong manufacturing base and highly qualified workforce. Germany is proud of its cutting-edge digital infrastructure, which includes dependable telecom networks and fast internet access.

Real-time navigation, over-the-air software upgrades, and vehicle-to-vehicle communication are just a few of the capabilities made possible by this infrastructure, which offers a strong basis for the implementation of connected car technologies. Germany's competitiveness in the European connected car market is further enhanced by its commitment to expanding digital infrastructure. The shift in the automobile sector toward linked and autonomous vehicles has received encouragement from the German government. The National Platform Future of Mobility (NPM) and the Digital Agenda for Germany are two initiatives that offer financial support and strategic direction for the advancement and application of connected automotive technology. Furthermore, data privacy, cybersecurity, and safety requirements are prioritized in Germany's legislative framework, which inspires customer confidence and promotes industry innovation. Premium cars and cutting-edge automotive technology are in high demand in Germany, a country with a strong automotive culture. German car buyers place a high emphasis on innovation, performance, and quality, which fuels demand for connected car services and features. This domestic market demand, coupled with Germany's export-oriented automotive industry, positions the country as a key player in shaping the future of connected cars in Europe and beyond.

The competitive landscape of the connected car market is dynamic and characterized by the presence of diverse players spanning automotive manufacturers, technology companies, telecommunications providers, and startups. These entities contribute to the development, integration, and proliferation of connected car technologies. Traditional automotive manufacturers play a significant role in the connected car market by integrating connectivity features directly into their vehicles. Companies such as General Motors, Ford, Toyota, and BMW are incorporating advanced infotainment systems, telematics, and driver assistance technologies into their vehicles. OEMs often collaborate with technology partners to enhance their connected car offerings.

Technology giants are increasingly entering the connected car space, leveraging their expertise in software, artificial intelligence, and cloud computing. Companies like Apple, Google (through Android Auto), and Microsoft are developing platforms and ecosystems that seamlessly integrate with connected vehicles, providing services such as voice-activated controls, navigation, and in-car entertainment. The success of connected cars relies heavily on robust communication networks. Telecommunications companies like Verizon, AT&T, and Vodafone play a crucial role by providing the necessary connectivity infrastructure, including 4G and 5G networks. These providers are pivotal in enabling real-time data transfer, over-the-air updates, and other connected car services. Automotive suppliers, often referred to as Tier 1 suppliers, contribute essential components and systems to connected cars. Companies like Bosch, Continental, and Denso specialize in providing sensors, communication modules, and other hardware crucial for the functioning of connected car technologies. These suppliers work closely with OEMs to integrate advanced systems seamlessly. The connected car market is also influenced by a multitude of startups and niche players specializing in specific aspects of connectivity. These include companies focusing on cybersecurity for connected vehicles (e.g., Argus Cyber Security), AI-powered navigation (e.g., WayRay), and advanced driver assistance systems (e.g., Mobileye). These players often bring innovation and agility to the market, contributing to its overall dynamism.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Connected Car market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology

• 4G/LTE
• 3G
• 5G

By Connectivity Solutions

• Integrated
• Embedded
• Tethered

By Application

• Driver Assistance
• Safety
• Infotainment
• Telematics
• Fleet Management (Vehicle)
• Mobility Management
• Others

By End Market

• Original Equipment Manufacturer (OEMs)
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Connected Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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