The connected car devices market is driven by increasing electrification of vehicles.
Growing stringency of safety regulations and increasing demand for luxury and comfort have changed the market dynamics for vehicle manufacturers globally.
The global connected car devices market is projected to grow at a CAGR of 16.3 percent during the forecast period, to reach USD 57.15 billion by 2021.
The increased demand for luxury and premium segment cars is anticipated to boost the market for connected car devices.
The demand for luxury and premium segment cars in the region has increased significantly since the past few years. For instance, the sale of luxury cars by key manufacturers (Audi, BMW, Mercedes, and Volvo) in China increased in 2015, as compared to the previous year.
All these luxury vehicles are equipped with the majority of connected devices such as telematics, adaptive cruise control, and lane departure warning systems.
The increased demand for luxury and premium segment cars is thus anticipated to boost the market for connected car devices in the Asia-Pacific region in the near future.
Driver Assistance System (DAS) is estimated to have the highest growth potential in the global connected car devices market. It is projected to grow at a promising CAGR from 2016 to 2021.
This growth can be attributed to the proven benefits of the system in vehicle safety. The National Transportation Safety Board, U.S. included adaptive cruise control in its ten most wanted safety improvements in 2013.
The connected car devices market, by communication type, is led by the vehicle-to-vehicle communication type during the forecast period.
The vehicle-to-vehicle communication technology can be used to share information regarding traffic jams, position, and best possible route and can also help in avoiding collisions.
The growing demand for developing systems that will contribute towards the reduction of traffic fatalities, help save fuel, and increase efficiency are some of the factors contributing to the growth of vehicle-to-vehicle communication.
The market for these technologies is on the rise and regulatory bodies in Europe and North America are planning to mandate some of these technologies.
For example, in Europe, eCall has been mandated for all the new vehicles in the near future.
6 Factors Driving Connected Car Devices Market of Vehicles
1. Asia-Pacific: The fastest growing market for connected car devices
Asia-Pacific is estimated to be the most promising market for connected car devices in the next five years, owing to the improved standard of living and increasing buyer preferences for safety and comfort.
Additionally, the upcoming safety regulations in the Asian countries would also positively influence the market for driver assistance systems such as adaptive cruise control system and lane departure warning system.
The demand for luxury and premium segment cars in the region has increased significantly since the past few years.
For instance, the sale of luxury cars by key manufacturers (Audi, BMW, Mercedes, and Volvo) in China increased in 2015, as compared to the previous year.
All these luxury vehicles are equipped with the majority of connected devices such as telematics, adaptive cruise control, and lane departure warning systems.
The increased demand for luxury and premium segment cars is thus anticipated to boost the market for connected car devices in the Asia-Pacific region in the near future.
2. Connected car devices market leaders
Continental AG is one of the major suppliers of connected car devices to automotive OEMs including Daimler AG (Germany), Fiat-Chrysler (U.K.), Ford Motor Company (U.S.), General Motors (U.S.), and Volkswagen (Germany).
Another important player in the Connected Car Devices Market is Delphi Automotive, PLC (U.K.). The company is one of the key suppliers of electronic components to the automotive industry and provides critical components, systems, and advanced software for passenger safety, security, comfort, and infotainment.
Delphi’s major customers include leading OEMs in the automotive industry such as General Motors (U.S.), Volkswagen (Germany), Ford Motor Company (U.S.), and Daimler AG (Germany).
3. Connected car devices market drivers
- Industry compliance and government laws supporting connectivity and telematics in automobiles
- Increasing penetration of telecommunication services in the automotive industry
- Intense competition among connected car manufacturers
4. Market key players
The global connected car devices market is dominated by key manufacturers such as Continental AG (Germany), Denso Corporation (Japan), Delphi Automotive, PLC (U.K.), Robert Bosch GmbH (Germany), and Autoliv Inc. (Sweden) among others.
5. DSRC: Growing Connectivity technology in passenger cars
Connected car devices with Dedicated Short Range Communication (DSRC) use short-range communication technologies such as Radar and Lidar, which are designed for a communication range up to 1000 feet.
DSRC allows rapid communications between connected car networks and is used for various applications in modern automobiles.
Its applications include driver assistance technologies such as lane departure warning and advanced cruise control systems.
The market for these technologies is on the rise and the trend is expected to continue for the coming years. DSRC technology is a high growth potential market in the overall connected car devices market.
6. Vehicle-to-Vehicle (v2v) Communication: High growth potential technology
The vehicle-to-vehicle (V2V) communication is generally a short range type of communication among automobiles.
The major reason for the development of such technologies is to prevent accidents by allowing vehicles in transit to send position and speed data to one another over the short-range network.
Allowing better safety of vehicles, V2V communication technology is estimated to have the highest growth potential in the connected car devices market across the globe.
It is projected to grow at a promising CAGR from 2016 to 2021. This growth can be attributed to the proven benefits of the system in vehicle safety for which the government is also taking a proactive approach.
Devices used to communicate and exchange information about the vehicle with other entities such as vehicles, infrastructure, pedestrians, or clouds are called connected car devices.
The systems falling under DAS (adaptive cruise control, blind spot detection systems and many more), telematics, and security systems which allow the vehicle to communicate and exchange information are considered as connected car devices.
The connected devices allow V2V, V2P, V2I, and other types of communication.
Swati Gupta has 3+ years’ experience in Primary & Secondary Market Research, Business Analysis, Market Trend Mapping & Forecast, Competitive Intelligence etc. As a Research Analyst at MarketsandMarkets, Swati is responsible for report making, data analysis, data forecasting, handling consults and ad-hoc client requests and diligent with strong problem solving to build information products aligned with client’s requirements.
