Connected Vehicle Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The connected vehicle market is poised to register a CAGR of over 24.00% over the forecast period (2020-2025).

• Vehicle today are already being packed with more electronics than machinery. Through the technical developments, connected cars are expected to evolve further in the future, providing personalization options that are typically expected from popular consumer electronics devices, such as smartphones. Through smart platforms, IoT and telematics together have enhanced connectivity, communications, and responses that offer infotainment, safety, security, and enhanced vehicle management to drivers, passengers, and commuters.
• Basic vehicle connectivity applications, such as in-car entertainment, navigation, and in-car connectivity (for example, through Bluetooth), have evolved rapidly over the last decade around the world. More advanced telematics features that utilize car sensor data, driving behavior, and vehicle-health parameters are also evolving, particularly with the aftermarket solutions.
• North America and Europe is the key contributor in this growth story for the connected cars. In the Chinese market as well, demands for connected cars are increasing fast. More than 35% of the connected car sales is expected to be attributed to the Chinese market.

Scope of the Report

The connected Vehicle market covers the latest technology trends, government policies to promote connected features in vehicles and market share of major connected car manufacturers across the globe.

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Key Market Trends

Continuous Evolution Connected Features In Vehicles

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.

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