Primarily driven by the increasing demand for in-car safety solutions, the global connected car market is expected to reach a value of $ 156.6 billion by 2027.
According to the recent report by Research and Markets, the global connected car market was valued at $ 62.83 billion in 2021 and is expected to grow at a CAGR of 16.44% during 2021-2027.
Keeping in mind the uncertainties of COVID-19, the research firm is continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end-use sectors. These insights are included in the report as a major market contributor.
Connected cars refer to vehicles equipped with internet connectivity and advanced communication technologies to facilitate the exchange of information via numerous communication channels. They are designed to offer improved vehicle performance, enhanced user convenience, and efficient interaction of the transport system with its surroundings to prevent road accidents and notify prompts regarding parking space availability.
They also provide real-time traffic alerts to the driver and alarm emergency services in case of an unfortunate circumstance. Along with this, these alerts and signals further enhance the overall traffic performance and road safety management while ensuring optimal driving comfort. The report observed that the growing dependency on uninterrupted connectivity to access navigation services is a thrust to the market growth.
The key players in the landscape include AT&T Inc., Audi AG (Volkswagen AG), Bayerische Motoren Werke AG, Continental AG, Ford Motor Company, Mercedes-Benz Group, Qualcomm, Robert Bosch, Samsung Electronics, Sierra Wireless, Tesla, TomTom, Valeo, Verizon Communications and Vodafone Group.
The market is primarily driven by the increasing demand for in-car safety solutions. In line with this, the widespread integration of connected cars with advanced driver-assistance systems (ADAS) for mapping road obstacles and anti-lock braking systems (ABS) to enable safe braking is expected to create a positive outlook for the market.
Moreover, the advent of 5G connectivity and the rising utilisation of artificial intelligence (AI) and machine-to-machine (M2M) interconnectivity between multiple cars are favourably impacting the market. In line with this, continual developments in the manufacturing of advanced suspension systems also provide an impetus to the market.
According to Research and Markets, the market is further driven by the escalating popularity of luxury cars among individuals with high disposable income levels and the emergence of autonomous driving trends. Some of the other factors contributing to the market growth include rapid digitisation across the automotive sector and extensive research and development (R&D) activities conducted by key players, the report noted.
Courtesy: Research and Markets. Photo is representational; courtesy: Continental.