According to a new report by Allied Market Research, titled "Global Connected Cars Market (Technology, Connectivity Solutions, Application, Products & Services and Geography) -Size, Share, Global Trends, Company Profiles, Demand, Insights, Analysis, Research, Report, Opportunities, Segmentation and Forecast, 2013 - 2020", the global connected cars market is forecast to reach $141 Billion by 2020, growing at a CAGR of 32.7% during the period (2014 - 2020). Integrated connectivity solutions segment is expected to emerge as a preferred connectivity solutions for connected cars, surpassing embedded connectivity solutions segment in 2016. North America currently garners major market share and would maintain the position throughout the forecast period.
The availability of faster communication networks, advanced connectivity solutions and a user friendly interface should drive global connected car market. Also, an enhanced driving experience, offered by connected cars and favorable rules & regulations across numerous countries will fuel the market growth. North America is a relatively mature market for connected cars, as it was amongst the first regions to adopt this new technology. The European connected car market will foresee tremendous growth with the passing of Ecall regulations by the European Parliament. This rule mandates the installation of an Ecall System for every car in production from the year 2015. The eCall system automatically alerts the nearest help service in case of an emergency. This system cuts the emergency service response time by 50% to 60%. The European Union claims that mandating the eCall system could approximately save up to 2,500 lives every year. Following this, Russia and Brazil also look forward to implement a similar kind of legislation into their country. This would also help in tracing cases of car thefts.
2G, 3G and 4G/LTE are the network technologies that are deployed for connectivity within the cars. Amongst these, 2G technology used for providing connectivity will gradually fade out, and will be replaced by the 3G and LTE technologies. Some of the prime reasons for this technological shift would be the rapidly changing telecommunication technology and the introduction of faster & reliable communication networks.
Key findings of the study:
- 2G network technology will slowly fade out giving way to advanced telecommunication technology namely 3G and 4G
- By 2020, integrated and embedded solutions will be amongst the most popular connectivity solutions in the connected car market and would together account for about 80% of the overall market
- North America and Europe would prove to be the most lucrative markets in terms of revenue generation, whereas the Asia-Pacificmarket will grow fastest
Telefonica, Verizon, Harman, TomTom, AT&T Inc., Ford, BMW Audi and Mercedes Benz are the major market players that are profiled in the report. Collaboration and product launch are the prime corporate strategies adopted by these companies. AT&T and Audi have entered into a collaboration to bring 4G LTE technology to their connected cars. With the connectivity service provided by AT&T, Audi's consumers could avail data plans at a reasonable price. Many automakers are teaming up with software providers in order to improve their connected car services. BMW USA, has collaborated with Apple Inc. for software development solutions.
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