According to the new market research report “Connected Car Market by Hardware (Semiconductor Components, and Connectivity ICs- Wi-Fi, Bluetooth and Cellular), Application (Telematics, Infotainment, and Combined Telematics & Infotainment), and Geography – Global Forecast to 2022”, published by MarketsandMarkets, the market is expected to grow from 5.1 Million units in 2015 to 37.7 Million units by 2022, at a CAGR of 35.54% during the forecast period.
Rising demand for embedded infotainment system, usage-based insurance (UBI), implementation of intelligent transportation system (ITS), and government mandates on telematics application are expected to drive the growth of the connected car market. Moreover, rapid urbanization in Asia Pacific (APAC) countries also contributes to the growth of the connected car market.
Semiconductor components to hold the largest share of the connected car market in North America
Semiconductor component which includes microcontroller, FPGAs, DSPs, and memory chips has the largest market share in North America. The high adoption rate of telematics and infotainment applications along with the presence of major semiconductor companies such as Intel Corporation (U.S.), Texas Instruments, Inc. (U.S.), Qualcomm, Inc. (U.S.), Micron Technology, Inc. (U.S.) and NVidia Corporation (U.S.) along with automobile manufacturer such as General Motors Company (U.S.) and Ford Motors Company (U.S.) are driving the growth of the connected car market for semiconductor components in North America.
Telematics application expected to grow at the highest rate between 2016 and 2022
Telematics application which includes eCall, fleet management, remote diagnosis, and usage-based insurance (UBI) services is expected to grow at the highest CAGR during the forecast period. The government mandates on telematics application, implementation of intelligent transportation system (ITS), rapid urbanization, and rising demand for UBI are expected to drive the connected car market for telematics application during the forecast period.
North America to hold the major market share for connected car market during the forecast period
North America, which comprises the U.S., Mexico, and Canada, dominates the connected car market on a global level. The U.S. is a major contributor to the growth of the connected car market in North America. The growth in this segment would be driven by the regulatory mandates on certain telematics applications. In the U.S., the transportation system is at a critical juncture as the current infrastructure is reaching its capacity and the transportation network is at a saturation point.
Traditional methods of infrastructure expansion are no more a viable solution to address traffic congestion, hence alternative solutions are required. Connected cars, with the additional application of telematics and navigation, present an ideal solution to this issue. Moreover, the presence of major automobile companies such as Ford Motor Company (U.S.) General Motors Company (U.S.), and Tesla Motors, Inc. (U.S.); telecom solution providers and operators such as Verizon Communications, Inc. (U.S.), Sierra Wireless, Inc. (Canada), AT&T, Inc. (U.S.); and software players such as IBM Corporation (U.S.) and Microsoft Corporation (U.S.) are driving the growth of the connected car market in North America.
The major players in the connected car market are Audi AG (Germany), BMW AG (Germany), General Motors Company (U.S.), Tesla Motors, Inc. (U.S.), Google, Inc. (U.S.), Volvo Car Corporation (Sweden), Delphi Automotive Plc (U.K.), Vodafone Group Plc. (U.K.), AT&T, Inc. (U.S.), Denso Corporation (Japan), Robert Bosch GmbH (Germany), Airbiquity Inc. (U.S.), and Wirelesscar (Sweden).