Connected Car Market Poised for Growth Between 2024 and 2028

The connected car market is projected to grow by USD 341.72 billion at a CAGR of 36.5% between 2023 and 2028. This expansion is driven by increasing internet penetration, blockchain adoption in vehicles, and government mandates enhancing in-vehicle safety. However, manufacturers face challenges such as complex design requirements, short product lifecycles, and data management concerns. Despite these hurdles, technological advancements and regulatory initiatives continue to propel market growth.

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Market Segmentation

By Connectivity

• Embedded Solutions: The embedded solutions segment will experience significant growth, driven by smartphone-based applications and the adoption of embedded software for infotainment, navigation, and security services.

• Integrated Solutions

• Tethered Solutions

The embedded solutions segment was valued at USD 12.92 billion in 2018, with growth spurred by the increasing demand for hybrid vehicles and connected applications. Investments in autonomous vehicles are also rising, such as the January 2019 collaboration between BlackBerry and Baidu to integrate Baidu high-definition maps into BlackBerry’s QNX Neutrino operating system. Additionally, cost reductions in infotainment systems have contributed to increased adoption.

By End-User

• OEM

• Aftermarket

By Region

North America (43% Market Share)

• United States

• Canada

The growth of connected cars in North America is driven by IoT integration, vehicle-to-vehicle (V2V) connectivity, and stringent safety regulations from the National Highway Traffic Safety Administration (NHTSA). Safety features such as crash imminent braking, dynamic brake support, and pedestrian automatic emergency braking are increasingly adopted. Government initiatives, such as Canada’s Advance Connectivity and Automation in the Transportation System (ACATS) program, further drive market growth.

Europe

• United Kingdom

• Germany

• France

• Rest of Europe

Asia-Pacific (APAC)

• China

• India

Middle East & Africa

• Saudi Arabia

• South Africa

• Rest of Middle East & Africa

South America

• Chile

• Brazil

• Argentina

Market Dynamics

Key Drivers

• Government Regulations: Global mandates for enhanced safety standards, such as telematics solutions like eCall and ERA-GLONASS, are fueling market expansion.

• Advanced Driver Assistance Systems (ADAS): ADAS technologies, which can reduce accidents by up to 30%, contribute to growing safety adoption.

• Big Data Utilization: The rise of real-time data collection is enabling more efficient product development and personalized insurance pricing.

Major Challenges

• Data Management: The increasing volume of vehicle-generated data presents challenges in collection, usage, and protection.

• Short Product Lifecycles: Rapid advancements in smartphone technology shorten the lifespan of connected car technologies.

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Key Companies in the Connected Car Market

Some of the key companies of the Connected Car Market are as follows:

• Airbiquity Inc.
• Alps Alpine Co. Ltd.
• AT and T Inc.
• Bayerische Motoren Werke AG
• BorgWarner Inc.
• DXC Technology Co.
• Ford Motor Co.
• Information Technologies Institute Intellias LLC
• Mercedes Benz Group AG
• NXP Semiconductors NV
• Qualcomm Inc.
• Robert Bosch GmbH
• Samsung Electronics Co. Ltd.
• Schaeffler AG
• Sierra Wireless Inc.
• Telefonica SA
• Tesla Inc.
• Valeo SA
• Volkswagen AG
• Zubie Inc.

Recent Developments

January 2019: BlackBerry and Baidu announced a collaboration to integrate Baidu high-definition maps into BlackBerry’s QNX Neutrino real-time operating system.