Asia Pacific Connected Cars Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Asia Pacific Connected Cars market is anticipated to register a CAGR greater than 19% during the forecast period (2020 - 2025).
Vehicles today are equipped with various electronics and machinery equipment. But significant technological developments made over the last decade, has let rise to connected cars come in use today and it is expected to evolve in the future. Connected cars improve road safety, facilitate anti-theft features, and assist the driver by exchanging critical information between nearby infrastructure and vehicles.
China is the fastest-growing region for an automotive technology manufacturer. Due to growing affordability, the consumption patterns of the Asia Pacific region are seeing a change. India is a growing technology hub with recent advancements in IoT and telematics, which has enhanced connectivity, communications, and responses that offer infotainment, safety, security, and increased vehicle management to drivers, passengers, and commuters.
In-vehicle connected mobility has been the integration of mobile devices into the vehicle to enhance and personalize navigation, communication, and entertainment capabilities. Connected-car applications continue to expand, requiring the car to handle increased bandwidth demands to accommodate high-quality video displays and high-resolution images of knobs and switches with advanced user interfaces.
As smartphone use has risen, the usage of smartphones for the same purposes in their cars has also increased. Car manufacturers are opting for modular hardware design, which is built into the car and works with smartphone's software. Access to smartphones makes it extremely easy and accessible to the user. Moreover, it helps extract large quantities of data for car manufacturers and the government to improve the performance of the connected vehicles and its surroundings.
The modern connected cars offer more than just a group of systems which function independently, instead it integrates independent entities to facilitate networks, communications, data storage and band frequencies with 3G and 4G connectivity between the connected vehicle and its surrounding.
For instance, construction workers can be informed, in case there is an approaching vehicle at the site of construction. Traffic police can identify over speeding cars, which could then lead to accidents. Also, driving patterns can help determine if the driver is intoxicated. All this becomes accessibly convenient for smartphone users, which will further improve the penetration of connected systems-built cars.
Owing to the increase in the connectivity features in the latest car models, China is likely to lead the connected vehicle market in the Asia Pacific. As the domestic market of China is growing, it will shape the future related car industry with increasing technological advantages in ICT, data processing and platform services, secure industrial investment, and a very dedicated industrial strategy and support from the central government. China's powerful planning agency, the National Development and Reform Commission, expects one in every two new cars sold to be equipped with smart autonomous functions by 2020.
In developing countries like India, the growth of infrastructures of communication and information technology like 5G or 4G LTE will push the demand for connected cars. Also, favorable government policies will increase the growth market owing to the rise in the safety regulations for security & protection and authorization.
Nowadays, companies such as Maruti Suzuki and Nissan India are collaborating with connected car manufacturers for equipping connecting-car technology and offers additional features in the context of control, convenience, safety and security, and social sharing. As a result, automobiles are to see carmakers offer more connected technology in their vehicles.
The Asia Pacific Connected cars Market is moderately consolidated with existing players such as BMW AG, Audi AG, Continental AG, Daimler AG, Denso Corporation, Robert Bosch GmbH. As the demand for connected systems is growing in the region, the connected-cars manufacturers are trying to have the edge over its competitors by making joint-ventures, partnerships, launching new products with advanced technology.
For instance, In April 2019, Hyundai Motor India Ltd launched Hyundai Venue as the first brilliant connected SUV of the country with the most advanced connectivity solution - Hyundai BlueLink. The BlueLink provides safety features that are first in the industry, like vehicle theft tracking and immobilization for recovery of stolen vehicles.