The Global Market for Connected Car Solutions is Forecast to Reach 247.7 Million Units by 2024
Growing Commercial Value of
Innovations that Make Driving Safer & Sustainable Spurs Global
Opportunities for Connected Car Solutions, According to a New Report by Global Industry Analysts,
Inc.
GIA launches comprehensive analysis of
industry segments, trends, growth drivers, market share, size and demand
forecasts on the global Connected Car Solutions market. The global market for Connected Car Solutions is forecast
to reach 247.7 million units by 2024,
driven by the growing focus on connected car services by auto OEMs as they evolve
into original mobility service provides to ensure differentiation in a
saturated industry; changing transportation technology, new mobility needs and
social trends and growing commercial value of innovations that make driving
safer & sustainable.
Connected cars are defined as cars
integrated with multiple sensors and with access to the internet, in a manner
that enables them to send and receive signals, sense and interact with the
environment around them. The impact of connected cars will be felt in the three
broad areas of In-Vehicle Communication, Vehicle-to-Vehicle Communication, and
Vehicle-to-Infrastructure Communication. Connectivity, in this regard, will be
deployed through Infotainment, Navigation and Telematics. The automotive industry is currently
witnessing the refreshing emergence of new revenue streams and business models
coming from smart vehicles and their related infrastructure. Automotive
manufacturers are increasingly focusing on leveraging IoT to deliver, market-driven
differentiated vehicles and automotive services for a growing base of
technology savvy consumers with complex information and connectivity needs.
A key factor driving the need to connect
vehicles to the Internet is the digitalization of modern consumer lifestyles.
Other forces responsible for the growth of the automotive industry as a major
microsystem of IoT include safety, reliability, entertainment, and changing
intelligent transportation needs. As the value chain of connected car ecosystem
expands in the coming years, in-vehicle IoT strategy will emerge to achieve
critical importance across all participants in the value chain. Connected cars
and intelligent transportation will piggy back on IoT infrastructure,
architecture, computing, storage, and networking platform. Public, private
(OEM) and enterprise clouds will emerge as channels for delivery of connected
car services, while mobile Wi-Fi (3G/4G), WiMAX, femtocells, and Dedicated Short-Range Communications (DSRC) roadside infrastructure and Ethernet-based Central
Vehicle Gateway, will offer the connectivity required for connected vehicle
evolution.
The global automotive industry which
witnessed strong recovery gains post the 2007-09 recession, is now beginning to
slow down having exhausted all opportunities for new sales growth, especially
so in developed markets. With the average age of vehicles on road during the
year 2010 averaging between 10 to 11.5 years, millions of cars were due for
replacements, a key reason for the strong growth witnessed during the 2011
through 2016 period. Currently, however new opportunities for car replacements
are falling. The industry has reached a fair level of saturation with
consumers’ appetite for new cars plateauing. Other major factors also playing
instrumental roles in slowing down the industry’s growth include changing
ideologies among the younger consumers about the social value of owning
expensive cars; easy access to alternative forms of transportation; higher
environmental consciousness; and the rise of the sharing economy and the
resulting increase in car sharing and carpooling behavior. Car sharing is eating
into the sales of new cars. In the U.S. especially the trend remains more
prominent with car sharing businesses cannibalizing sales of over 650 thousand new
vehicles per year. The rise of on-demand mobility and the massively growing
base of recurring revenues in the auto industry which is forecast to surpass
US$1 trillion by 2030, will drive demand for connectivity features in
automobiles. Connected cars are pivotal to the changing value shifts in the
world automotive industry. They are vital for enabling smart mobility services,
vehicle telematics services, among numerous other intelligent services.
Specifically they help enable ride sharing, car sharing, rental/leasing,
consumer services such as traffic alerts, parking support, vehicle insurance
payments, location based services, vehicle management services, support for
advanced driver assistance systems, and cloud based services.
As stated by the new market research
report on Connected Car Solutions the United States and Europe dominate the market with
almost equal might. Asia-Pacific represents the fastest growing market with a CAGR
of 37.6% over the analysis period led by factors such as growing population;
rising affluence and still untapped potential for new car sales in several
emerging Asian countries; developing road and transportation infrastructure; and
rapid growth and evolution of electronic automotive technologies. China is
emerging as a key force for growth in the region with its massive automobile
production structure and a robust domestic appetite for cars. The country is
looking to export surplus automobiles produced into the international market.
he domestic car market is rapidly moving from “first time vehicle buyers” to
“mature second-time buyers with an appetite for premium cars with high-end
digital features.
Major players in the market include Automotive
OEMs, Connectivity Technology Providers and Telecom Operators. Automotive OEMs include
Audi AG, Bayerische Motoren Werke AG, Daimler AG, Ford Motor Company, Fiat
Chrysler Automobiles N.V., General Motors Company, Honda Motor Co. Ltd, Nissan
Motor Co., Ltd., Renault Group, and Toyota Motor Corp, among others. Connectivity
Technology Providers include Automotive Grade Linux Foundation, Airbiquity,
Apple Inc., Delphi Automotive LLP, Freescale Semiconductor Inc, Google Inc.,
Harman International, Intel Corporation, Intelligent Mechatronic Systems Inc.,
Cisco, Microsoft Corporation, NXP Semiconductors N.V., Octo Telematics SpA, QNX
Software Systems Ltd., Qualcomm Incorporated, Robert Bosch GmbH, Texas
Instruments Incorporated, TomTom International BV, Verizon Telematics Inc., and
WirelessCar among others. Telecom
Operators include Aeris Communications, AT&T, Sierra Wireless, Vodafone
Group Plc, Vodafone Automotive SpA and Verizon Communications Inc., among
others.
The
research report titled “Connected Car Solutions: A
Global Strategic Business Report” announced by Global Industry Analysts Inc.,
provides a comprehensive review
of market trends, issues, drivers, mergers, acquisitions and other strategic
industry activities of global companies.
The report provides market estimates and projections for all major
geographic markets such as the USA, Canada, Japan, Europe (France, Germany,
Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (China and Rest of
Asia-Pacific), Latin America (Brazil and Rest of Latin America) and Rest of
World. Product segments analyzed in the
report include Tethered, Smartphone and Embedded Connected Car Solutions.
For enquiries e-mail us at rsd@strategyr.com or info411@strategyr.com
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