Global Connected Car Market Overview, 2024-29

Market Dynamic

Market Drivers • Advancements in communication technologies: Communication technology advances such as 5G connectivity, Wi-Fi, and Bluetooth have allowed connected cars to transmit data faster with reduced latency and more bandwidth. These developments enable a variety of connected automobile applications, including vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-cloud (V2C) connectivity. • Rise of autonomous driving technologies: Connected cars are a critical enabler of autonomous driving technologies, which have the potential to transform the automotive industry by eliminating the need for human interaction while driving. Connected cars provide the data connectivity, sensor fusion, and real-time processing capabilities required by autonomous vehicles to perceive their surroundings, make intelligent judgments, and navigate safely on the road. Market Challenges • Interoperability challenges: The connected car market is a complex ecosystem of parties, including automakers, technology companies, telecommunications providers, and regulatory agencies. Interoperability and compatibility between diverse systems, devices, and networks are critical for enabling seamless communication and the integration of connected car technology. However, interoperability issues develop as a result of proprietary technologies, varying standards, and opposing stakeholder interests. • Data privacy and security concerns: The increased volume of data created by connected cars raises worries about data privacy and security. Personal and sensitive information gathered by connected automobiles, such as location data and driving behavior, must be kept secure from unauthorized access, misuse, and breaches. Addressing these problems requires sophisticated data encryption, access restrictions, and compliance with data protection requirements such as GDPR. Market Trends • Rise of electric and autonomous vehicles: Concerns about environmental sustainability, safety, and urban congestion are propelling electric vehicles (EVs) and autonomous vehicles (AVs) forward in the global connected car market. Connected car technologies are critical for enabling features such as predictive maintenance, remote diagnostics, and vehicle-to-infrastructure connection, all of which are required for mainstream adoption of EVs and autonomous vehicles. • Emergence of Mobility-as-a-Service (MaaS) Platforms: The rise of mobility-as-a-service (MaaS) platforms is transforming how individuals access and use transportation services. MaaS platforms combine many means of transportation, such as public transit, ride-sharing, bike-sharing, and car-sharing, into a single digital platform, providing customers with seamless and convenient mobility options. Connected automobiles are critical to MaaS ecosystems because they provide on-demand access to vehicles and allow for seamless interaction with other modes of mobility. Covid-19 Impacts The global connected car market relies on complex and interconnected supply chains. The pandemic disrupted manufacturing and supply chain operations worldwide, causing delays in the production and distribution of connected car components. Shortages of essential electronic components and logistical challenges affected the timely delivery of vehicles, leading to a slowdown in production and sales. Economic uncertainties resulting from the pandemic led to reduced consumer spending, impacting the automotive industry, including the connected car market. Consumers deferred or canceled purchases of new vehicles, affecting the adoption of connected car technologies. The economic downturn and financial uncertainties prompted some consumers to prioritize essential expenses over discretionary spending on advanced vehicle features. The pandemic disrupted the deployment and integration of connected car services and technologies. Development projects and collaborations between automotive manufacturers, technology companies, and service providers were delayed or put on hold. The focus shifted towards addressing immediate challenges, diverting resources from long-term innovation and development efforts. Automotive events, conferences, and exhibitions, which play a crucial role in showcasing new technologies and fostering collaborations, were either canceled or moved to virtual platforms. The absence of in-person events limited networking opportunities and slowed down the exchange of ideas and innovations within the connected car industry. The pandemic has altered consumer priorities and preferences, with an increased focus on health, safety, and contactless experiences. While connected car features related to safety and remote monitoring gained importance, non-essential features related to in-car entertainment and luxury experienced reduced demand.

Key Development

• April 2022 – Airbiquity®, a global leader in connected vehicle services, launched DATAmatic®, a suite of edge data management solutions to address the increasing need for services and tools that help automakers manage and monetize connected vehicle data. The suite includes the DATAmatic Edge Data Platform and DATAmatic Edge Data Logger. • January 2022 – Airbiquity®, a global leader in connected vehicle services, announced an advancement in its collaboration with Renesas, a premier supplier of advanced semiconductor solutions. This expanded technology integration involves the Renesas R-Car S4 system-on-chip (SoC) and the Airbiquity OTAmatic® software management platform. • In April 2022, Obigo Inc. (Obigo) and Korea Electric Technology Institute (KETI) collaborated to develop 5G-NR-V2X technologies for connected and autonomous automobiles. • In January 2022, Aptiv PLC announced a next-generation advanced driver-assistance system (ADAS) for driverless and electrified vehicles. Because of Aptiv's scalable architecture will help to reduce the cost of software-driven automobiles.