Connected Car Systems Market: Introduction
- Rise in demand for enhanced driving experience and safety of vehicle occupants has fueled the popularity of connected cars worldwide
- Connected cars leverage the power of multiple connectivity technologies to detect, analyze, and communicate in-vehicle and outside vehicle conditions according to the factory-set standards or as per the input provided by driver and passengers
- Data connectivity enables vehicles to perform more non-conventional tasks by getting to destination faster, minimizing cost of fuel, and enhance comfort of ride
Key Drivers of Connected Car Systems Market
- Demand for next-generation vehicles is rising due to an increase in purchasing power of consumers. Therefore, changing demands of consumers are prompting OEMs to equip their vehicles with advanced systems that render different levels of autonomy and increase convenience of driver and passengers. For instance, in April 2019, Fiat Chrysler Automobiles partnered with Harman International to develop a connected service platform named ‘Ecosystem,’ for all vehicles of Fiat Chrysler Automobiles. This platform includes telematics service, rental, sharing solution, maintenance, infotainment, safety, and other in-vehicle connected services. Thus, growing inclination of customers toward next generation vehicles is driving the connected car systems market.
- Transportation regulatory agencies of various countries are amending their guidelines related to vehicle safety and emissions. Countries in Europe, North America, and other regions have mandated the installation of driver assistance systems in vehicles sold across these countries. Connected car systems improve safety through features such as in-cabin monitoring and ADAS and also assist in reducing pollution through exhaust gas analysis. Thus, favorable regulatory transformations are driving the connected car systems market across the globe.
Challenges in Connected Car Systems Market
- The high cost of connected cars and their vulnerability to data thefts are major restrains hampering the global connected car systems market. Consequently, market players are continuously upgrading their offerings in order to overcome these challenges. For instance, Faurecia partnered with GuardKnox, an Israel-based cyber-security firm, to increase the data security of its connected car systems.
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Impact of COVID-19 Pandemic on Connected Car Systems Market
- The COVID-19 pandemic disrupted automotive supply chains, thus creating a shortage of raw materials and components. Several nations across the globe are currently experiencing a second wave of this pandemic, which is further hampering the automotive industry and the overall global economy. This disruption has negatively impacted the global connected car systems market.
North America and Europe to Hold Significant Share of Connected Car Systems Market
- North America and Europe held major share of the global connected car systems market due to on-going developments of autonomous and connected cars by automakers and the assistance provided by government agencies in these regions. For instance, the U.S. Department of Transport mandated all vehicles sold in the country to be equipped with Vehicle-to-Everything (V2X) communications by 2023. Furthermore, on-going smart city projects in San Jose, Seattle, and several other cities across North America are aimed at creating connected infrastructure. These programs are further boosting application of automotive connectivity technologies to enable communication between vehicles and the environment including buildings and traffic lights. Likewise, in 2017, the European Union started the 5G-CORAL project under its Horizon program, in which Azcom is developing V2X capabilities. These factors are propelling the share held by North America and Europe in the global connected car systems market.
Key Players Operating in Connected Car Systems Market
The global connected car systems market is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the connected car systems market are:
- Autoliv Inc.
- Continental AG
- Delphi Technologies PLC
- DENSO Corporation