Connected Cars Market

Connected Cars Market

Connected Cars Market Forecasts to 2028 - Global Analysis By Connectivity Solution (Tethered, Integrated, Embedded), Technology (5G, 3G, 4G/LTE), Service (Mobility Management, Driver Assistance, Vehicle Management, Safety & Security, Entertainment), Network (Cellular, Dedicated Short Range Communication (DSRC)), Network, Vehicle Type, Hardware, Connectivity Type, Application, End User and Geography

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Published: 2023 ID: SMRC22913

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2022)

US $28.55 BN

Projected Year Value (2028)

US $89.62 BN

CAGR (2022 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

North America

According to Stratistics MRC, the Global Connected Cars Market is accounted for $28.55 billion in 2022 and is expected to reach $89.62 billion by 2028 growing at a CAGR of 21% during the forecast period. The term "connected cars" describes vehicles that have internet connectivity and cutting-edge communication systems to enable the exchange of information across multiple communication channels. They are made to provide better vehicle performance, increased user convenience, and effective interaction between the transportation system and its surroundings in order to reduce traffic accidents and provide reminders on parking spot availability.

According to the 5G Automotive Associations, a seamless 5G network can help prevent more than 60% of traffic accidents.

Market Dynamics:


Intelligent Transportation System

The data interchange between the vehicle and the driver is one of the many innovative aftermarket technologies that connected automobiles offer as part of their safety features. To increase vehicle economy, save fuel and maintenance costs, strengthen security and safety measures, and improve the entire driving experience for the driver, safety blends telecommunications and automobile technology. Another element of connected cars that assists the driver in choosing the best route to their destination is the driver assistance system. Additionally, it delivers notifications on parking availability and traffic congestion. With the help of these connected automobile features, intelligent transportation systems may improve the driving experience.



Despite notable improvements in connected automotive technology, cybersecurity remains a major worry. Bluetooth, hardware software, and mobile applications are all vulnerable parts of linked autos. This can make it difficult for the market to expand. Numerous circumstances have been made uncomfortable by cybersecurity. The Tesla S and Nissan Leaf are two instances of how susceptible linked cars are to hacking.


Emergence of new technologies like 5G and AI

For all connected automobiles to provide a better user experience, wireless connectivity is required. Many companies in the telecommunications industry are working on 5G in order to increase the efficiency and security of connected automobiles. The worldwide 5G automotive associations claim that 68% of accidents may be avoided by the use of future 5G technology. An example is the agreement between the EU and South Korea to work together on 5G development for regional 5G projects. With the increased usage of sensors and other data technologies, Al will be crucial to making sense of everything. Al is now used in certain cars for Level 3 autonomous driving, although for the industry to achieve Level 5, both the infrastructure and the automobiles need to undergo considerable upgrades.


Lack of infrastructure for the proper functioning of connected cars

Due of the inadequate network coverage on roads, vehicles do not belong to the cloud or to one another. In emerging countries like Mexico, Brazil, and India, as opposed to developed countries, the expansion of IT infrastructure on roads is slower. Currently, only urban and suburban regions have access to 3G and 4G LTE communication networks. In semi-urban and rural areas, there are many third-party logistics companies operating, but connection is a challenge. As a result, the lack of IT and communication infrastructure in developing regions and the gradual implementation of government rules may hinder the growth of the connected automotive industry in these countries.

Covid-19 Impact

The future of new sales is uncertain in the short term as long as lockdowns continue to happen at random, which will prevent consumers from driving their cars. Sales will drop dramatically as a result of the lack of semiconductors, which has already forced many production halts for major producers. The need for private transportation does, however, continue to grow despite the restricted cash supply, which has significantly increased the number of transactions made of previously owned goods. This will help counterbalance some of the reduced sales that were seen. Companies have the chance to focus on improving the connectivity between their varied services and products at all points in the automotive supply chain.

The 5G segment is expected to be the largest during the forecast period

The 5G segment is estimated to have a lucrative growth. Cars can connect to infrastructure & one another more quickly and reliably using 5G networks since they have lower latency and faster throughput than 4G networks. This will allow for more capabilities, such improved collision avoidance and real-time traffic updates. Due to 5G networks' higher capacity than 4G networks, more cars may connect at once, improving traffic flow and reducing congestion. New services like Vehicle-to-Everything (V2X) connection, which enables automobiles to communicate with other cars, pedestrians, and other infrastructure like traffic lights and weather sensors, are also made feasible by 5G. As a result, vehicles are able to be more cognizant of their surroundings and make safer and more efficient driving decisions.

The Original Equipment Manufacturer (OEM) segment is expected to have the highest CAGR during the forecast period

The Original Equipment Manufacturer (OEM) segment is anticipated to witness the fastest CAGR growth during the forecast period. Rising technological developments such as unrestricted connection, cybersecurity, and the development of autonomous cars connected with highly secure software are predicted to boost OEMs' dominance during the projection period. The establishment of alliances with significant companies to provide high-quality and reasonably priced components is another element driving the rise of the OEM market.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period. A large number of automakers with operations in the Asia-Pacific area have created linked services, which will ultimately aid in the growth of the connected car industry in the region. Due to the cooperation of well-known connected vehicle companies and the rollout of 5G networks for connected cars, the market for linked cars is expected to grow tremendously. The development of advanced wireless platforms by wireless service providers for connected vehicles is another initiative that is expected to aid in the growth of the Asia-Pacific connected car industry.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to growth of the connected vehicle network. Important telecommunications firms are also investing in the development of linked car capabilities. The expansion of connected car services in the region has been made possible by an uptick in North American auto production and sales. The regional market has grown as a result of new technologies produced by connected service providers to provide better and more efficient service.

Key players in the market

Some of the key players profiled in the Connected Cars Market include Continental AG, Toyota Motor Corporation, Valeo, DENSO Corporation, Harman International Industries, Inc., Robert Bosch GmbH, Tesla, Panasonic Holdings Corporation, TomTom International, Kia Motors Corporation, Maruti Suzuki India Limited, Hyundai Motor Company, Nissan Motor Company and Qualcomm Technologies.

Key Developments:

In February 2022, HARMAN Savari MECWAVE is an Ultra-Low-Latency Edge-Based Computing Platform for Turn-Key Connectivity that was released. MECWAVE enables faster deployment of vehicle-to-everything (V2X) communications like hazard alerts and high-throughput networking experiences like interactive infotainment and video streaming. MECWAVE also gives mobile and wearable devices, as well as non-V2X compliant vehicles and equipment like motorbikes and scooters, the ability to communicate with one another over the internet.

In November 2021, Continental developed a technology solution for highly autonomous driving. It is made up of smart software that can independently perform complicated driving manoeuvres. Starting at Level 3, highly autonomous driving is feasible thanks to a ground-breaking software programme called the Next Generation Driving Planner. This suggests that a vehicle can operate in various driving situations without a driver. An important development in automotive intelligence may be seen in the software that Continental developed.

Connectivity Solutions Covered:
• Tethered
• Integrated
• Embedded
• Other Connectivity Solutions

Technologies Covered:
• 5G
• 3G
• 4G/LTE
• Other Technologies

Services Covered:
• Mobility Management
• Driver Assistance
• Vehicle Management
• Safety & Security
• Entertainment
• Other Services

Networks Covered:
• Cellular
• Dedicated Short Range Communication (DSRC)
• Other Networks

Vehicle Types Covered:
• Commercial Vehicle
• Passenger Cars
• Other Vehicle Types

Hardware Covered:
• Telematic Control Unit (TCU)
• Central Gateway (CGW)
• Sensors
• Electronic Control Unit (ECU)
• Head Unit
• Intelligent Antenna
• Other Hardwares

Connectivity Types Covered:
• V2Pedestrain
• V2Vehicle
• V2Infrastructure
• Other Connectivity Types

Applications Covered:
• Infotainment
• Telematics
• Navigation
• Other Applications

End Users Covered:
• Original Equipment Manufacturer (OEM)
• Aftermarket

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary

2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions

3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 Application Analysis
3.8 End User Analysis
3.9 Emerging Markets
3.10 Impact of Covid-19

4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry

5 Global Connected Cars Market, By Connectivity Solution
5.1 Introduction
5.2 Tethered
5.3 Integrated
5.4 Embedded
5.5 Other Connectivity Solutions

6 Global Connected Cars Market, By Technology
6.1 Introduction
6.2 5G
6.3 3G
6.4 4G/LTE
6.5 Other Technologies

7 Global Connected Cars Market, By Service
7.1 Introduction
7.2 Mobility Management
7.3 Driver Assistance
7.4 Vehicle Management
7.5 Safety & Security
7.6 Entertainment
7.7 Other Services

8 Global Connected Cars Market, By Network
8.1 Introduction
8.2 Cellular
8.3 Dedicated Short Range Communication (DSRC)
8.4 Other Networks

9 Global Connected Cars Market, By Vehicle Type
9.1 Introduction
9.2 Commercial Vehicle
9.3 Passenger Cars
9.4 Other Vehicle Types

10 Global Connected Cars Market, By Hardware
10.1 Introduction
10.2 Telematic Control Unit (TCU)
10.3 Central Gateway (CGW)
10.4 Sensors
10.5 Electronic Control Unit (ECU)
10.6 Head Unit
10.7 Intelligent Antenna
10.8 Other Hardwares

11 Global Connected Cars Market, By Connectivity Type
11.1 Introduction
11.2 V2Pedestrain
11.3 V2Vehicle
11.4 V2Infrastructure
11.5 Other Connectivity Types

12 Global Connected Cars Market, By Application
12.1 Introduction
12.2 Infotainment
12.3 Telematics
12.4 Navigation
12.5 Other Applications

13 Global Connected Cars Market, By End User
13.1 Introduction
13.2 Original Equipment Manufacturer (OEM)
13.3 Aftermarket

14 Global Connected Cars Market, By Geography
14.1 Introduction
14.2 North America
14.2.1 US
14.2.2 Canada
14.2.3 Mexico
14.3 Europe
14.3.1 Germany
14.3.2 UK
14.3.3 Italy
14.3.4 France
14.3.5 Spain
14.3.6 Rest of Europe
14.4 Asia Pacific
14.4.1 Japan
14.4.2 China
14.4.3 India
14.4.4 Australia
14.4.5 New Zealand
14.4.6 South Korea
14.4.7 Rest of Asia Pacific
14.5 South America
14.5.1 Argentina
14.5.2 Brazil
14.5.3 Chile
14.5.4 Rest of South America
14.6 Middle East & Africa
14.6.1 Saudi Arabia
14.6.2 UAE
14.6.3 Qatar
14.6.4 South Africa
14.6.5 Rest of Middle East & Africa

15 Key Developments
15.1 Agreements, Partnerships, Collaborations and Joint Ventures
15.2 Acquisitions & Mergers
15.3 New Product Launch
15.4 Expansions
15.5 Other Key Strategies

16 Company Profiling
16.1 Continental AG
16.2 Toyota Motor Corporation
16.3 Valeo
16.4 DENSO Corporation
16.5 Harman International Industries, Inc.
16.6 Robert Bosch GmbH
16.7 Tesla
16.8 Panasonic Holdings Corporation
16.9 TomTom International
16.10 Kia Motors Corporation
16.11 Maruti Suzuki India Limited
16.12 Hyundai Motor Company
16.13 Nissan Motor Company
16.14 Qualcomm Technologies

List of Tables
1 Global Connected Cars Market Outlook, By Region (2020-2028) ($MN)
2 Global Connected Cars Market Outlook, By Connectivity Solution (2020-2028) ($MN)
3 Global Connected Cars Market Outlook, By Tethered (2020-2028) ($MN)
4 Global Connected Cars Market Outlook, By Integrated (2020-2028) ($MN)
5 Global Connected Cars Market Outlook, By Embedded (2020-2028) ($MN)
6 Global Connected Cars Market Outlook, By Other Connectivity Solutions (2020-2028) ($MN)
7 Global Connected Cars Market Outlook, By Technology (2020-2028) ($MN)
8 Global Connected Cars Market Outlook, By 5G (2020-2028) ($MN)
9 Global Connected Cars Market Outlook, By 3G (2020-2028) ($MN)
10 Global Connected Cars Market Outlook, By 4G/LTE (2020-2028) ($MN)
11 Global Connected Cars Market Outlook, By Other Technologies (2020-2028) ($MN)
12 Global Connected Cars Market Outlook, By Service (2020-2028) ($MN)
13 Global Connected Cars Market Outlook, By Mobility Management (2020-2028) ($MN)
14 Global Connected Cars Market Outlook, By Driver Assistance (2020-2028) ($MN)
15 Global Connected Cars Market Outlook, By Vehicle Management (2020-2028) ($MN)
16 Global Connected Cars Market Outlook, By Safety & Security (2020-2028) ($MN)
17 Global Connected Cars Market Outlook, By Entertainment (2020-2028) ($MN)
18 Global Connected Cars Market Outlook, By Other Services (2020-2028) ($MN)
19 Global Connected Cars Market Outlook, By Network (2020-2028) ($MN)
20 Global Connected Cars Market Outlook, By Cellular (2020-2028) ($MN)
21 Global Connected Cars Market Outlook, By Dedicated Short Range Communication (DSRC) (2020-2028) ($MN)
22 Global Connected Cars Market Outlook, By Other Networks (2020-2028) ($MN)
23 Global Connected Cars Market Outlook, By Vehicle Type (2020-2028) ($MN)
24 Global Connected Cars Market Outlook, By Commercial Vehicle (2020-2028) ($MN)
25 Global Connected Cars Market Outlook, By Passenger Cars (2020-2028) ($MN)
26 Global Connected Cars Market Outlook, By Other Vehicle Types (2020-2028) ($MN)
27 Global Connected Cars Market Outlook, By Hardware (2020-2028) ($MN)
28 Global Connected Cars Market Outlook, By Telematic Control Unit (TCU) (2020-2028) ($MN)
29 Global Connected Cars Market Outlook, By Central Gateway (CGW) (2020-2028) ($MN)
30 Global Connected Cars Market Outlook, By Sensors (2020-2028) ($MN)
31 Global Connected Cars Market Outlook, By Electronic Control Unit (ECU) (2020-2028) ($MN)
32 Global Connected Cars Market Outlook, By Head Unit (2020-2028) ($MN)
33 Global Connected Cars Market Outlook, By Intelligent Antenna (2020-2028) ($MN)
34 Global Connected Cars Market Outlook, By Other Hardwares (2020-2028) ($MN)
35 Global Connected Cars Market Outlook, By Connectivity Type (2020-2028) ($MN)
36 Global Connected Cars Market Outlook, By V2Pedestrain (2020-2028) ($MN)
37 Global Connected Cars Market Outlook, By V2Vehicle (2020-2028) ($MN)
38 Global Connected Cars Market Outlook, By V2Infrastructure (2020-2028) ($MN)
39 Global Connected Cars Market Outlook, By Other Connectivity Types (2020-2028) ($MN)
40 Global Connected Cars Market Outlook, By Application (2020-2028) ($MN)
41 Global Connected Cars Market Outlook, By Infotainment (2020-2028) ($MN)
42 Global Connected Cars Market Outlook, By Telematics (2020-2028) ($MN)
43 Global Connected Cars Market Outlook, By Navigation (2020-2028) ($MN)
44 Global Connected Cars Market Outlook, By Other Applications (2020-2028) ($MN)
45 Global Connected Cars Market Outlook, By End User (2020-2028) ($MN)
46 Global Connected Cars Market Outlook, By Original Equipment Manufacturer (OEM) (2020-2028) ($MN)
47 Global Connected Cars Market Outlook, By Aftermarket (2020-2028) ($MN)

Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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