Connected Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The connected vehicle market is poised to register a CAGR of over 24.00% over the forecast period (2020-2025).
Today, cars are made up of a group of different systems that are all placed in the vehicle and function independently and with limited access to the data in their environment. The introduction of networks to the car provides the ability to both open up and consolidate these systems, removing any redundancy in memory and processing capabilities while streamlining the functionality of these devices to be more harmonized. This is the transition towards connected mobility that is occurring within the vehicle itself.
One of the biggest drivers of in-vehicle connected mobility has been infotainment of the integration of mobile devices into the vehicle to enhance and personalize navigation, communication, and entertainment capabilities. In-vehicle infotainment applications continue to expand, requiring the vehicle to handle increased bandwidth demands to accommodate high-quality video displays and high-resolution images of knobs and switches with advanced user interfaces.
Vehicle manufacturers are launching new models with the connection and bandwidth capabilities to handle consumer demands, they can also support more complex vehicle-to-vehicle or vehicle-to-infrastructure connections. This capability has existed for years in a simpler form through telematics-boutique telematics systems such as OnStar provided connections that allowed for remote GPS, communications, and diagnostic services. Currently, telematic control units have additional functionality and operate as a type of hub between the vehicle network and cloud network.
Cars with advance connectivity technology such as 5G are in the testing phase, and with low latency and faster downloading speeds, the connected car could be one of the biggest beneficiaries of the new wireless standard. But first, local administrations and telecom companies must build the infrastructure for 5G to prosper. 5G is still a few years away for connected-car manufacturers who want to provide the technology in their vehicles, and a hybrid 4G/5G system is more likely.
Asia-pacific is likely to lead the connected vehicle market over the forecast owing to the increase in the connectivity features in latest car models. The rise in demand of digital features in vehicles especially in developing countries like China, India is anticipated to drive the connected vehicle market in the region.
Asia-Pacific is expected to be followed by North America and Europe respectively. The demand of connectivity features in vehicles will increase in North American market owing to the rise in the safety regulations for security & protection and authorization. The growth of infrastructure of communication and information technology like 5G or 4G LTE will also help North America in growing over the forecast period.
The connected vehicle market is dominated by Continental AG, Robert Bosch GmbH, Harman International Industries, Inc., DENSO Corporation, Airbiquity Inc, and Visteon Corporation. Connected vehicles' features are poised to become a common phenomenon in the developing nations such as China, India, etc., market over the forecast period, as OEMs have started offering connected car features in their new respective models. For instance,