The connected vehicle market accounted for US$ 52,649.57 million in the year 2022 and is expected to grow at a CAGR of 19.0% during the period 2022 - 2030, to account for US$ 2,12,012.9 million in the year 2030.
Analyst Perspective:
The global connected vehicle market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Connected vehicles are devices, software, or systems that use V2X communications to improve road safety, system efficiency, or mobility. It uses data collected through short-range communication and peer-to-peer and vehicle-to-vehicle communication to analyze what other vehicles, bikers, pedestrians, and others are doing and detect potential risks.
Technological advancements and a growing focus on safety and convenience are among the major driving factors of the connected vehicle market in North America. The US is leading in the North American connected vehicle market. The growing concern about mitigating greenhouse gas emissions and controlling the carbon footprint influences the Europe connected vehicle market positively. The increasing advancement in the telecom infrastructure and growing technological development in the automotive sector also drive the connected vehicle market in Europe. Germany, France, and the UK are among the significant contributors to the Europe connected vehicle market.
Increasing smart city initiatives, investment in developing infrastructure, and rising disposable income are major driving factors for the Asia Pacific connected vehicle market. China, Japan, South Korea, and India are major countries in the Asia Pacific connected vehicle market.
Market Overview:
The automobile industry has undergone a fundamental transition affecting the connected car market positively in recent years. Vehicles in this dynamic industry are distinguished by their advanced sensor, communication, and software capabilities, which allow them to connect to the internet, other vehicles, infrastructure, and numerous digital platforms. Numerous opportunities and applications have been made possible by these connected automobiles, ranging from improved safety features and real-time traffic updates to autonomous driving capabilities and customized in-car experiences.
One of the driving forces behind the growth of the connected vehicle market is the increasing consumer demand for connectivity and convenience. Consumers are now expecting seamless integration of their smartphones to access navigation and entertainment apps and to monitor and control their vehicles remotely. Moreover, businesses and industries are exploring the potential of connected fleets for improved logistics, fuel efficiency, and vehicle management. On the other hand, connected vehicles are raising concerns about data privacy and cybersecurity risks; as a result, the market is facing regulatory and cybersecurity issues. Governments and businesses are establishing norms and rules to guarantee the deployment of connected vehicles securely and safely.
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Connected Vehicle Market: Strategic Insights
Market Size Value in US$ 52,649.57 million 2022 Market Size Value by US$ 2,12,012.9 million 2030 Growth rate CAGR of 19.0 % from 2022 to 2030 Forecast Period 2022-2030 Base Year 2022
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Connected Vehicle Market: Strategic Insights
| Market Size Value in | US$ 52,649.57 million 2022 |
| Market Size Value by | US$ 2,12,012.9 million 2030 |
| Growth rate | CAGR of 19.0 % from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
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Market Driver:
Growing demand for driving assistance system
The advancement of Advanced Driver Assistance Systems (ADAS) has positively impacted the connected vehicle market, reshaping the automotive landscape in several significant ways. ADAS is a powerful catalyst for the increased adoption of connected vehicle technology. These systems include features such as adaptive cruise control, blind-spot monitoring, and automated parking assistance, which have garnered immense attention for their potential to enhance road safety. As a result, consumers are valuing and actively seeking vehicles equipped with ADAS. This surge in demand is driving automakers to integrate more sophisticated connectivity features into their cars. For instance, as per the study done by the American Automobile Association, ~40% of US consumers expect at least one driver support system. As a result of such demand, the country has more than 60 million vehicles equipped with the ADAS system.
Automakers are also investing significantly in building robust, high-speed communication networks within vehicles, a critical component for the seamless operation of ADAS. This investment in connectivity infrastructure is simultaneously driving advancements in the broader connected vehicle market. For instance, in 2018, BMW invested capital in Blackmore Sensors and Analytics, Inc., which manufactures frequency-modulated continuous wave (FMCW) lidar for the automotive industry. Blackmore used the investment to scale the production of its FMCW lidar sensor for advanced driver assistance systems (ADAS) and self-driving markets. In addition, in 2021, Volkswagen Group partnered with Microsoft to fast-track the development of automated driving.
Segmental Analysis:
Based on Network Type, the connected vehicle is divided into 5G, 4G/LTE, and 3G & 2G. Continuous development activities, along with the increasing need for faster and more efficient internet connections, are the factor that is supporting the 4G and 5G growth.
The fifth generation of communication networks offers considerable improvements over its forerunners. Higher speeds, lower latency, more capacity, and enhanced dependability have been added, creating new business opportunities. The foundation for connected and autonomous automobile networks is mainly laid by 5G. This technology connects vehicles, infrastructure, network services, bicycles, and pedestrians. The growing popularity of software-defined vehicles is one of the main factors facilitating this shift. Software is used to implement a growing portion of a vehicle's functionality, which may be updated or modified over time. This change enables automobile OEMs to supplement their existing revenue models with subscription-based or on-demand service models. The capacity to increase safety throughout the vehicle's life cycle more effectively than before is another benefit of the 5G-connected automobile. With linked car technology becoming increasingly popular, some automakers are utilizing data collection and analysis to open up new possibilities for vehicle upkeep, aftermarket sales, and services.
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Regional Analysis:
The North American connected vehicle market is segmented into the US, Canada, and Mexico. The connected vehicle industry has garnered high revenue in North America due to a convergence of market-specific factors that create a favorable environment for growth and investment. Firstly, North America boasts a mature and technologically advanced automotive sector. Leading automotive manufacturers, technology companies, and service providers have recognized the immense potential of the market in North America and have accordingly invested in R&D and deployment of connected vehicle technologies. In addition, the regulatory landscape in North America has been influential in driving the demand for connected vehicle market’s growth. Regulatory bodies have taken a proactive stance toward encouraging the incorporation of connectivity features in vehicles, recognizing the potential for improved safety and efficiency. These regulatory initiatives have incentivized automakers to integrate connected technologies into their vehicle offerings.
The consumer base in North America is marked by a strong preference for technology and innovation. Consumers in the region have shown a high demand for vehicles equipped with advanced connectivity features, such as in-car Wi-Fi, seamless smartphone integration, and sophisticated infotainment systems. This consumer-driven demand has translated into higher sales and revenue figures for connected vehicles in the market.
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Key Player Analysis:
Harman International, Visteon Corporation, Vodafone Group, Audi AG, Robert Bosch, General Motors, Continental AG, AT&T, Denso Corporation, and BMW Group are among the key players operating in the connected vehicle market.
Recent Developments:
Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the global connected vehicle market. A few recent developments by key the connected vehicle market players are listed below:
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Technology, Connectivity, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The advancement of Advanced Driver Assistance Systems (ADAS) has positively impacted the connected vehicle market, reshaping the automotive landscape in several significant ways. ADAS is a powerful catalyst for the increased adoption of connected vehicle technology.
Europe's automotive industry has long been a cornerstone of the global automotive landscape, known for its tradition of engineering excellence, innovation, and quality. The industry is accounting for ~20% of global production. The adoption of connected vehicles is gaining momentum across the continent.
The data monetization trend in the connected vehicle industry is exploring innovative ways to leverage the vast amounts of data generated by connected vehicles for financial gain while also delivering value to vehicle owners and third-party stakeholders. One prominent trend is the usage-based insurance (UBI).
Harman International, Visteon Corporation, Robert Bosch, and General Motors are the key market players operating in the global connected vehicle market.
The increasing focus on smart city initiatives drives investments in infrastructure ultimately supporting the growth of the connected vehicles market. In addition, the rising adoption of fully autonomous vehicles is expected to significantly impact the demand for the connected vehicle market in the coming years, reshaping the automotive industry.
The List of Companies - Connected Vehicle Market
- Harman International
- Visteon Corporation
- Vodafone Group
- Audi AG
- Robert Bosch
- General Motors
- Continental AG
- AT&T
- Denso Corporation
- BMW Group
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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