The global connected car market size is expected to reach USD 180.30 billion by 2022, according to a new study by Grand View Research, Inc. Surging consumer demand, the constant need for connectivity, increased dependency on technology and the growing number of tech-savvy people are some of the factors expected to boost global connected car market growth.
Connected cars offer connectivity on wheels providing comfort, performance along with safety and security. Such advanced technology enables the driver and passengers to connect with various online platforms that facilitate real-time communication on the go.
The connected car market has the potential to significantly boost revenues of automobile manufacturers over the next five to seven years. Car manufacturers are expected to deliver the right mix of application and product packages for the right customers, and must systematically invest in R&D if they are willing to maintain their technological leadership.
Increasing regulations by governments and transportation authorities for the installation of advanced safety and vehicle to vehicle communications systems are expected to positively impact industry growth.
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Further key findings from the study suggest:
- Safety applications dominated the global connected car industry, accounting for over 34% of the share in 2014. The inclusion of safety technologies such as danger warning systems, automatic emergency calling, blind-spot alerts, anti-collision systems that prevent accidents in automobiles has made modern cars safer and accident-proof. This is expected to result in an overall reduction in road mishaps and accidents thus reducing the overall on-road fatalities.
- Growing at a CAGR of over 31% from 2015 to 2022, driver assistance systems are expected to gain prominence over the forecast period. Recent advancements in driver assistance systems such as Volkswagen’s Emergency Assist, that automatically applies the brakes and stops a car in case of an emergency and BMW’s autonomous parking valet, that automatically parks a car even after the passenger’s exit have set benchmarks for driver assistance systems in the connected vehicle industry.
- Asia Pacific is expected to grow at a CAGR of over 29% over the forecast period due to considerable automobile demand in the region coupled with a relatively untapped market for sophisticated automotive communications in the region. Countries such as China and India are expected to drive industry growth during the next seven years. Automobile manufacturers and technology giants across the world are striving hard to provide advanced vehicle management and safety technologies in the budget car segment as well. Regulation by the European department of transportation in association with the governments have mandated the installation of eCall emergence calling systems and other advanced telematics systems for safety purposes in all new vehicles manufactured after the year 2014.
- Technological and product innovations have driven a highly dynamic market. Industry participants include major automobile manufacturers and telecommunication giants such as Audi AG, Alcatel Lucent, Apple Inc, BMW, Ford Motors, and Google Inc. Manufacturers resort to mergers, acquisitions, and strategic alliances with technological and network service providers as their key growth strategy to make their presence felt in the industry.