Connected Car Device Market is projected to expand at a CAGR of more than 11% during the forecast period between 2018 to 2026 and anticipated to surpass US$ 20 Bn by 2026”, according to a report by Transparency Market research.
The other observations of the report are as follows:
Connected car devices enable internet access to the car and thus, allow transmission of data within and outside the vehicle. A connected car device is employed to improve user experience, safety, and fuel efficiency.
Advancements in IoT, wireless communication, and smartphone technology are driving the consumer demand for internet connectivity, which in turn is boosting the connected car device market.
Increased efforts by government agencies to boost the adoption of V2X technology is expected to drive the connected car device market. The U.S. Department of Transport has mandated vehicles to be equipped with V2V, a type of V2X technology, by 2023. V2X technology complements ADAS and hence, the rising demand for ADAS is estimated to drive the connected car device market. The EU has made it mandatory for all vehicles to be equipped with eCall, a connected car technology that assists in emergency rescue during an accident.
Implementation of V2X technologies is expected to reduce the number of accidents and thus, drive the demand for vehicle connectivity, which in turn is projected to boost the demand for connected car devices.
Consolidation of various industries, such as automotive, telecom, IT, and insurance is driving the connected car device market. The Geneva Alliance, comprising Aisin Seiki, Delphi Connect, Magneti–Marelli, Visteon, Harman International, and Continental AG is actively working on the development of software and technology for vehicle connectivity.
In terms of sales, the demand for retrofit solutions, i.e., the OBD dongle, is expected to rise till 2023. Retrofit connecting devices can be utilized by all vehicles registered after 1996, as they contain an OBD port. Retrofit devices have independent hardware and software and hence, are highly cost-effective as compared to built-in devices. Automakers are investing significantly to build proprietary built-in solutions for car connectivity.
Sales of retrofit connecting devices are expected to suffer post 2021, as a majority of new vehicles are likely to contain built-in connected devices. Increasing importance of smartphones and apps is expected to drive the smartphone sub-segment of the built-in segment of the connected car device market during the forecast period.
Key players operating in the global connected car device market include Delphi Connect, DENSO Corporation, Robert Bosch GmbH, Preh GmbH, Harman International, Infineon Technologies AG, Hella GmbH & Co. KGaA, Valeo SA, NXP Semiconductors, AISIN SEIKI Co., Ltd., ZF Friedrichshafen AG, u-blox AG, and Continental AG.
Source: Transparency Market Research