The global connected car market is expected to witness substantial growth in the coming years owing to growing population of tech-savvy population and rising demand for connectivity solutions. Increasing efforts by government to implement connected technology in passenger cars and high demand for efficient, safe, and convenient driving experience using connected car services are also likely to drive the market in future. Moreover, demand for safety and security features is expected to increase in the coming years as the facility improves security constraints with the help of powerful network technology. The technology also allows the driver to connect with online platforms, which could, in turn, facilitate real-time communication.
Furthermore, growing trend of connectivity solutions and convenience of vehicle diagnosis are anticipated to present several growth opportunities for the market. Vehicle diagnosis helps to foresee important issues in the vehicle and avoid mishaps. Several connectivity solutions, such as the machine-to-machine (M2M) connectivity platform have been developed by vehicle manufacturers and service providers. The feature allows interconnectivity between two cars and provides accurate and real-time information to the driver. This could, in turn, boost demand for these solutions in the coming years.
However, high installation cost, threat of data hacking, and issues related to continuous connectivity are expected to hinder the market growth in coming years.
The market can be segregated based on products and services as fleet management, wireless and cellular modules, original equipment manufacturer (OEM) services, processors, and aftermarket services. Fleet management is expected to account for a major share in the market owing to its extensively usage for tracking fleet vehicles by the managers. Moreover, the technology helps the manager to ensure timely maintenance of vehicle and avoid serious vehicle damage. For instance, WABCO Holdings Inc., a prominent supplier of technologies that improve the efficiency, connectivity, and safety of commercial vehicles, launched TRAXEE, a new fleet management system, which is intended to meet the needs of operators of small to medium-size commercial fleets. The system also provides real-time status updates on vehicles and drivers and helps to fulfil the tachograph legal compliance requirements. It can be operated on desktop computers and a wide range of mobile devices. The solution is also equipped with GPS as standard and can pinpoint the exact position of the vehicle.
Key technologies employed in the market include 2G, 3G, and 4G/LTE. 4G/LTE holds a prominent share in the market due to increasing demand for fast and advanced technology in connected vehicles. The technology offers driver to share and update the record of emergency service provider efficiently than other technologies. Navigation, telematics, and infotainment are some of the major applications of connected cars. Navigation is a leading application in the market owing to its high demand in connected cars, especially while traveling in cities.
North America is a leading region in the market owing to early adoption of machine-to-machine (M2M) technology in U.S. and high consumer demand for technologically advanced features in passenger cars. Asia-Pacific is anticipated to witness robust growth in the years to come owing to government regulations on vehicle safety. As a result, implementation of this technology has increased in passenger vehicles. Furthermore, presence of leading automotive companies in the region is expected to stimulate the market growth.
Some of the key companies operating in the connected car market are Telefonica, HARMAN International., AT&T Intellectual Property, Verizon Wireless, and TomTom International BV. Companies are adopting IoT technologies in production in order to gain competitive advantage. For instance, AT&T, a prominent telecommunications company, announced expansion of its internet of things (IoT) fleet management solutions in order to meet the needs of organizations and government customers. The company integrated Geotab's fleet tracking platform with its IoT platforms. The AT&T Fleet Management for Government as well as Enterprise will aid in improving performance and safety.
