Connected Vehicle Market is anticipated to grow at a CAGR of 19.15% from 2019 to 2030.
Market Industry Reports (MIR) has published a new report titled “Connected Vehicle Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019–2030.” According to the report, the global connected vehiclemarket accounted forover US$39.78 billion in 2019. It is anticipated to grow at a CAGR of 19.15% from 2019 to 2030.
As per the Centers for Disease Control, vehicleaccidents are the leading cause of death amongthe age group of 18 to 35 across the globe. Connected vehicles are embedded with a wide range of safety features, such as remote diagnostics, multimedia streaming, access to social media & other apps, cyber security,on-road assistance, autopilot, e-call & SOS assistance, and other safety features which can lessen the number of vehicles accidents. Hence, many regional governments have been undertaking various initiatives to reduce road accidents by promoting connected vehicle technology. For instance, The US Department of (USDOT’s) is a connected vehicle program engaged in working with state transportation agencies, vehicle OEMs, local transportation agencies, and device makers to promote connected vehicle technology. Such government initiatives have been driving the overall growth of the market.
Increasing awareness regarding road safety, heavy investments by key players, increasing demand for electric vehicles, and growing demand for enhanced user comfort in vehicles are the major driving factors present in the operating market. Additionally, rising new product launches by the key players have been supplementing overall growth of the market. For instance, Audi AG is planning to launch 5G-connected car technology in collaboration withHuawei (Chinese technology giant)which further increases the sales of connected vehicles.
Moreover, ongoing R&D activities, increasing investments to develop automotive infrastructure and emergence of new technologies such as 5G and AI (Artificial Intelligence) in the automotive industry can create new opportunities in the market. Although, the connected vehicle has immense growth opportunities, the market faces numerous challenges such as privacy issues asconnected vehicles based on data sharing technology, lack of automotive infrastructure in several geographical regions such as Middle East and Africa, deployment challenges for V2V (Vehicle to Vehicle) technologies, and others.
North America accounts for the largest market share in 2019 owing to several factors such as thegovernment initiatives to promote connected vehicles, high awareness associated with road safety, high disposable income and others. However, Asia Pacific region is expected to grow at the highest CAGR during the forecast period (2019-2030) owing to presence of potential countries such as China, India, Japan and South Korea. Also, low-cost services, high demand for vehicle infotainment including 4G Wi-Fi hotspots, hands-free controls, music/audio, voice commands, contextual help, and others are the other driving factors present in the region.
Some of the prominent players in the global connected vehicle market includeBMW, 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.
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