According to a report by Markets and Markets the connected car devices market size is projected to grow at a CAGR of 16.3% during the forecast period, to reach USD 57.15 Billion by 2021. Rising concerns pertaining to vehicle, driver, passenger, and pedestrian safety have fuelled the growth of the connected car devices market globally.
Driver Assistance System (DAS) is estimated to have the highest growth potential in the global connected car devices market. It is projected to grow at a promising CAGR from 2016 to 2021. This growth can be attributed to the proven benefits of the system in vehicle safety.
The connected car devices market, by communication type, is led by the vehicle-to-vehicle communication type during the forecast period. The vehicle-to-vehicle communication technology can be used to share information regarding traffic jams, position, and best possible route and can also help in avoiding collisions.
The growing demand for developing systems that will contribute towards reduction of traffic fatalities, help save fuel, and increase efficiency are some of the factors contributing towards the growth of the vehicle-to-vehicle communication.
The market for these technologies is on the rise and regulatory bodies in Europe and North America are planning to mandate some of these technologies. For example, in Europe, eCall has been mandated for all the new vehicles in the near future.
The Asia-Pacific region is estimated to be the largest market for connected car devices during the review period. This is mainly because of the presence of emerging markets such as India and China, the two most populated countries in the world. The adoption rate of connected car technologies such as DAS and telematics is expected to increase in the Asia-Pacific region.
In 2015, the Indian government reviewed the policy for the usage of radar-based technologies in India, which would lead to an increase in the usage of DAS system in the Indian market. The region also has some of the most stringent vehicle safety regulations in the world, which would boost the market for advanced driver assistance technologies and telematics.
The key factors restraining the growth of the connected car devices market include high cost of these systems and complex nature. Driver assistance systems have several electronic components, which make the system complex and increase the overall cost of the system.
The global connected car devices market is dominated by key manufacturers such as Continental AG (Germany), Denso Corporation (Japan), Delphi Automotive, PLC (U.K.), Robert Bosch GmbH (Germany), and Autoliv Inc. (Sweden) among others.
These companies have been focusing on developing new products and forming partnerships and collaborations with key organizations to expand their presence in the global driver assistance system market. Continental AG is currently the market leader and has adopted partnerships and collaborations as the key strategy to gain traction in the market. For instance, it entered into a strategic collaboration agreement with China Automotive Technology & Research Center (CATARC) to work closely in areas such as automotive security.