Connected Vehicle Market by Technology (Vehicle to Infrastructure, Vehicle to Vehicle, Vehicle to Cloud, Vehicle to Pedestrian, and Vehicle to Everything), Connectivity Type (Tethered, Embedded, Integrated), End Market (Original Equipment Manufacturer, Aftermarket) - Global Analysis & Forecast 2019-2030
Report ID : 146 | Published Date : May 2020 | Pages : 180 | Region : Global | Report Code : AT-3
Connected Vehicle Market Overview and Introduction
Connected Vehicle Market is estimated to be US$ 39.78 billion in 2019. The market is anticipated to further grow at a CAGR of 19.15% from 2019 to 2030.
A connected vehicle is equipped with internet and can send data, access data, download software & patches, and communicate with other IoT devices. The first commercial connected car was developed by General Motors with Motorola Automotive in 1996, which could make voice calls to call centers in cases of emergency. Moreover, there are several key players, such as BMW, AUDI AG, Tesla, Volkswagen AG, and others, that have been investing heavily in connected vehicle technology to provide the best solutions in the market. The key functions/features of connected vehicles include infotainment, safety (roadside assistance, traffic, safety & collision warnings, and others), navigation, automobile diagnostics, etc.
According to the Centers for Disease Control, vehicle crashes are the leading cause of death among young children and adults. Connected vehicles can decrease the number of serious injuries and deaths caused by accidents on roads as connected vehicles are equipped with various safety features, which can reduce the number of accidents. For instance, according to the NHTSA (National Highway Traffic Safety Administration), connected vehicles have the potential to reduce vehicle crashes by approximately 80 percent. Hence, many regional governments have been taking initiatives to promote connected vehicle technology. For instance, The US Department of Transportation's (USDOT’s) is a connected vehicle program engaged in working with local transportation agencies, state transportation agencies, vehicle OEMs, and device makers to promote connected vehicle technology. Such government initiatives have been driving the overall market growth.
Connected vehicles provide various services/features, such as remote diagnostics, multimedia streaming, access to social media & other apps, on-road assistance, autopilot, e-call & SOS assistance, cyber security, and a wide range of other safety features. These services/features are considered as major factors that will boost market growth. Continuous product launches and developments by key market players have also been supplementing market growth. For instance, Audi AG is planning to launch 5G-connected car technology (5G technology can provide high internet speeds which further increase operational speeds) with Chinese technology giant Huawei.
Although the connected vehicle market offers immense growth opportunities, the market faces several challenges including deployment challenges for V2V technologies, high privacy concerns, lack of infrastructure in many geographical regions, and others.
The global connected vehicle market has primarily been segmented into the following categories - By Technology, By Connectivity Type, and By End Market.
Connected Vehicle Market By Technology
The by technology segment can be classified into vehicle to infrastructure, vehicle to vehicle, vehicle to cloud, vehicle to pedestrian, and vehicle to everything. The vehicle to infrastructure sub-segment accounted for the highest market share due to increased demand for infotainment including music/audio, voice commands, hands-free controls, 4G Wi-Fi hotspots, contextual help, and others.
Connected Vehicle Market By Connectivity Type
The connectivity type segment can be classified into tethered, embedded, and integrated. The embedded segment is expected to grow at the fastest CAGR during the forecast period (2019-2030) owing to factors such as regional government mandates, low-cost services, and growth in cloud-based services.
Connected Vehicle Market By End Market
The end market segment can be majorly classified into Original Equipment Manufacturer (OEM) and aftermarket. The aftermarket segment is projected to be the fastest-growing segment in the connected vehicle market during the forecast period. The growth of this segment can be attributed to cost-effectiveness and access to custom requirements.
Connected Vehicle Market By Regions
The global Connected Vehicle market can be segmented into North America, Europe, Asia Pacific, and the Rest of the World (ROW). North America accounts for the largest market share owing to several factors including the high demand for vehicle safety and vehicle-to-vehicle (V2V) connectivity technology, security norms, and new product developments.
Connected Vehicle Market Prominent Players
Some of the key players operating in the global connected vehicle market include BMW, AUDI AG, Tesla, Volkswagen AG, AB Volvo, OnStar (General Motors), Nissan Motor Co., Ltd., Toyota Motor Corporation, Hyundai Motor Company, and Honda Motor Co., Ltd., among others.