Artificial Intelligence
Connected Cars Market Assessment, By Network, By System Type, By Components, By Vehicle Type, By Communication Type, By Sales Channel, By Application, By Region, Opportunities and Forecast, 2016-2030F
New York, Aug. 03, 2023 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Connected Cars Market Assessment, By Network, By System Type, By Components, By Vehicle Type, By Communication Type, By Sales Channel, By Application, By Region, Opportunities and Forecast, 2016-2030F” – https://www.reportlinker.com/p06481830/?utm_source=GNW
Global Connected Cars Market size was valued at USD 70.37 billion in 2022 which is expected to reach USD 226.75 billion in 2030 with a CAGR of 15.75% for the forecast period between 2023 and 2030. The global connected cars market is rapidly evolving at the intersection of automotive technology and connectivity solutions. Connected cars, also known as smart cars, are vehicles equipped with internet access and integrated sensors, enabling seamless communication between vehicles, infrastructure, and other devices. The market for connected cars has witnessed exponential growth in recent years due to various market drivers. One of the key drivers is the increasing consumer demand for enhanced safety, convenience, and entertainment features in vehicles. Connected cars offer advanced driver assistance systems (ADAS), real-time traffic updates, and infotainment options, which significantly improve the driving experience. Moreover, the rising need for efficient traffic management, reduced carbon emissions, and improved transportation infrastructure has prompted governments and automotive manufacturers to invest in connected technologies.
Innovation has been a driving force in shaping the connected cars market. Advancements in 5G technology have significantly improved data transmission rates, enabling faster and more reliable connectivity in vehicles. This development has opened opportunities for real-time vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, making driving safer and more efficient. Additionally, the integration of artificial intelligence (AI) and machine learning has enabled smart cars to learn driver behavior, optimize routes, and predict maintenance requirements. Furthermore, the emergence of autonomous vehicles has accelerated the adoption of connected car technologies, as they require robust communication networks to operate safely and efficiently. As technology continues to evolve, the global connected cars market is poised for continued growth, with more innovative features and transformative solutions on the horizon.
For instance, Mercedes-Benz has embraced Car-to-X technologies, enabling vehicles to communicate with each other and the surrounding infrastructure. This advanced connectivity allows cars to exchange vital information, offering a new level of situational awareness. By peering around corners and through walls, the networked car can proactively warn nearby vehicles of potential hazards, effectively preventing accidents. This groundbreaking technology significantly enhances both safety and comfort for drivers and passengers alike. Moreover, it marks another significant step towards achieving autonomous driving capabilities, paving the way for a future where vehicles seamlessly cooperate and share information to create a safer and more efficient driving experience.
Increasing Demand for Safety and Security Features
The global connected cars market is witnessing a surge in demand for safety and security features. As technology advances, consumers are increasingly prioritizing safety in their purchasing decisions. Connected cars offer a range of safety features, including advanced driver assistance systems (ADAS), collision avoidance systems, lane departure warning, and adaptive cruise control. These features utilize sensors, cameras, and connectivity to enhance driver awareness and reduce the risk of accidents. Additionally, connected cars enable real-time monitoring and communication with emergency services in case of an incident, providing timely assistance. With rising concerns over road safety, regulatory mandates, and increasing consumer awareness, the demand for connected cars equipped with advanced safety and security features is expected to continue growing, driving innovation and investment in the market.
For instance, in 2022, the Audi launched A8 which offers advanced safety and security features, including adaptive cruise control, lane departure warning, collision avoidance systems, night vision assistance, and a comprehensive airbag system, ensuring a safe and secure driving experience.
Growing Demand for Convenience and Entertainment
The market is witnessing a growing demand for convenience and entertainment features. As consumers increasingly seek seamless integration of their digital lifestyles into their vehicles, connected cars offer a range of conveniences. These include features like voice-activated controls, smartphone connectivity, and access to a wide range of entertainment options. With built-in connectivity and infotainment systems, connected cars enable drivers and passengers to access music streaming services, navigation assistance, hands-free calling, and even personalized content recommendations. The demand for these features is driven by the desire for a more enjoyable and connected driving experience.
As technology continues to advance and consumer expectations evolve, automakers are investing in innovative features and partnerships with content providers to cater to the growing demand for convenience and entertainment in connected cars. For instance, launched in 2022 in India, the Mercedes-Benz EQS offers a host of convenience and entertainment features, including advanced voice-activated controls, a high-resolution infotainment system, immersive sound systems, and customizable ambient lighting, providing a luxurious and entertaining driving experience.
Rising Adoption of 5G Technology
The global connected cars market is experiencing a rising adoption of 5G technology. 5G networks offer high-speed, low-latency connectivity, which is crucial for supporting the advanced features and capabilities of connected cars. With 5G, vehicles can access and exchange large volumes of data in real time, enabling seamless communication with other vehicles, infrastructure, and cloud-based services. This technology enhances vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, enabling improved safety, traffic management, and navigation. 5G also enables the integration of high-definition video streaming, augmented reality (AR), and virtual reality (VR) experiences within the vehicle, enhancing the overall entertainment and passenger experience. As 5G networks continue to expand globally, the adoption of this technology in connected cars is expected to accelerate, unlocking new opportunities for innovation, and transforming the way we experience mobility.
Impact of COVID-19
The pandemic had a significant impact on the global connected cars market. The widespread lockdowns and travel restrictions imposed to curb the virus’s spread resulted in a decline in car sales and production worldwide. The automotive industry faced supply chain disruptions, labor shortages, and reduced consumer spending, leading to a slowdown in the adoption of connected car technologies. Additionally, the economic uncertainty caused by the pandemic led to a cautious approach among consumers, who prioritized essential expenses over discretionary purchases like connected cars. However, the crisis also highlighted the importance of connected technologies in enhancing vehicle safety, remote diagnostics, and entertainment options, driving innovation and investment in the sector. As the world gradually recovers from the pandemic, the connected cars market is expected to regain momentum, fueled by increasing demand for smart and connected features in vehicles.
Impact of Russia-Ukraine War
The Russia-Ukraine war had implications on the global connected cars market. As the conflict escalated, it caused economic uncertainty, and disruptions in supply chains. Many automotive manufacturers rely on components and technology sourced from both countries, leading to delays and production challenges. Additionally, market demand in the region and surrounding areas has been affected, causing a decline in sales and investment in connected car technologies. The war’s broader impact on global trade and investment sentiment has added further uncertainty, potentially stalling advancements in the connected cars market as manufacturers and consumers alike adopt a cautious approach amid ongoing geopolitical instability.
Key Players Landscape and Outlook
The global market for commercial vehicles is characterized by intense competition, as numerous prominent companies compete for a share of the market. These companies have established a robust global presence and provide a diverse selection of commercial vehicles. Continuously investing in research and development, they strive to create novel and cutting-edge products. Furthermore, they are expanding their range of offers to meet the increasing demand for commercial vehicles across various regions worldwide.
For instance, in 2023, during the recent Annual Meeting & Transportation Technology Exhibition of the American Trucking Associations’ (ATA) Technology & Maintenance Council (TMC) in Orlando, Florida, Volvo Trucks North America unveiled a new connected technology tool aimed at optimizing fuel efficiency and vehicle productivity for fleet customers. Known as the Connected Vehicle Analytics (CVA) tool, it collects real-world data from fleet operations, such as truck configurations, daily routes, average speed, and fuel efficiency. This data enables Volvo Trucks dealers to provide customized recommendations for Class 8 truck purchases that align with the customer’s specific operations.
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