Connected Car Market by Service, Form, End Market, Network, Transponder, Hardware, and Region - Global Forecast to 2027
Asia Pacific and Europe are the major regions where demand for connected car solutions and services is the highest due to various government regulations on vehicle safety. Furthermore, continuous R&D and collaborations of network and service providers with automotive companies in these regions are expected to stimulate the connected car market growth. It is expected that in North America, especially the US, the demand for connected car aftermarket services will increase at the highest rate due to increase in customer demand for advanced connected car services and availability of smart infrastructure.
Autopilot segment is estimated to be the fastest-growing market during the forecast period
The autopilot segment is expected to hold the majority of the connected car market share by 2027, owing to safety and convenience features in vehicles. For example, Tesla Model S can automatically steer down highways, change lanes, and adjust speeds according to traffic conditions. All these features use a combination of cameras, radars, ultrasonic sensors, and connected car features.
OEMs have designed and developed autopilot features that meet the requirements of autonomous safety. In Asia Pacific, the introduction of this technology is expected by 2022. China, Japan, and South Korea are the major countries taking initiatives for autopilot features in Asia Pacific. OEMs like Honda, Hyundai, Toyota, and Nissan are working on this to bring it to their domestic market.
Embedded form of connectivity is expected to grow at the fastest CAGR
Embedded form connectivity is expected to exhibit the fastest growth within the global connected car market. The growth of embedded connected solutions is attributed to various disruptive factors such as government mandates, cost optimization of service plans, and growth of cloud-based services. There are many connected car services that cannot be used without an embedded connectivity solution in the car, such as eCall and remote diagnostics, among others, which is increasing the adoption of embedded connected cars.