North America Connected Car Market Outlook, 2029

Market Dynamic

Market Drivers • Technological Innovation: The continuous advancement of technology is a key driver of the North American connected car market. Innovations in areas such as artificial intelligence, the internet of things (IoT), and telecommunications enable the development of advanced connected car features and services. These innovations include enhanced connectivity, real-time data analysis, and autonomous driving capabilities, which improve safety, convenience, and the overall driving experience for consumers. • Consumer Demand: Increasing consumer demand for connectivity, safety, and convenience features in vehicles is another major driver of the North American connected car market. Modern consumers expect their vehicles to offer seamless integration with their digital lives, including smartphone connectivity, navigation assistance, and in-car entertainment options. As a result, automakers are investing heavily in connected car technologies to meet these consumer expectations and remain competitive in the market. Market Challenges • Data Privacy and Security Concerns: One of the significant challenges facing the North American connected car market is the issue of data privacy and security. Connected cars collect and transmit vast amounts of sensitive data, including personal information, location data, and vehicle diagnostics. Ensuring the privacy and security of this data is crucial to maintaining consumer trust and complying with regulatory requirements. Concerns arise regarding unauthorised access, data breaches, and potential misuse of personal information, highlighting the need for robust data protection measures and transparent privacy policies. • Cybersecurity Risks: Connected cars are vulnerable to cybersecurity threats, including hacking, malware, and ransomware attacks. As vehicles become increasingly connected and autonomous, the potential consequences of cyberattacks pose significant safety risks to drivers, passengers, and road users. Cybersecurity risks include unauthorised access to vehicle systems, remote control of critical functions, and interference with vehicle operation. Addressing these risks requires the implementation of robust cybersecurity measures, such as encryption, intrusion detection systems, and over-the-air software updates, to protect connected car systems from cyber threats and ensure the safety and security of vehicles on the road. Market Opportunity • Integration with Smart Cities: Connected cars present an opportunity for integration with smart city infrastructure in North America. By leveraging vehicle-to-infrastructure (V2I) communication, connected cars can interact with traffic lights, road sensors, and other smart city systems to optimise traffic flow, reduce congestion, and improve overall transportation efficiency. This integration enables the development of intelligent transportation systems (ITS) that enhance safety, reduce emissions, and create more sustainable urban environments. • Emerging Mobility Services: The North American connected car market offers opportunities for the development of emerging mobility services that leverage connected car technologies. These services include ride-sharing platforms, car-sharing programmes, and subscription-based mobility services that provide consumers with flexible and convenient transportation options. Connected cars enable seamless connectivity between vehicles, users, and service providers, facilitating the development of innovative mobility solutions that cater to changing consumer preferences and urban mobility needs.