The global connected car market size is expected to reach $212.7 billion by 2027 (compared to $42.6 billion in 2019) at a CAGR of 22.3%, according to a report recent report from global research firm MarketsandMarkets.
Connected cars are vehicles that can share Internet access and transfer data with other devices, both inside the car and remotely.
The “Connected Car Market by Service” report, expected in 2027, analyzed several factors, including the end market, network, in-vehicle connectivity trends, government investments and incentives, and smart transportation methods.
Autonomous technology is also advancing, with many manufacturers planning autonomous vehicle options over the next five years. There are five different levels of autonomous automation, including:
- Level one – zero automation; the driver performs all vehicle operations
- Level two – partial automation; the vehicle assists in certain operations, such as steering
- Level three – conditional automation; the vehicle controls several critical functions, such as braking
- Level four – high automation; the vehicle is capable of monitoring and responding to events on the road, including when changing lanes
- Level five – complete automation
An early-stage level three example is the upcoming Cadillac CT6 model, which will offer a semi-autonomous “super cruise” feature that allows hands-free driving assistance on compatible highways.
Likewise, Audi will also incorporate its cutting-edge level three semi-autonomous technology into its upcoming A8 model. It will include the automaker's AI-based traffic jam pilot that can take over steering (at speeds up to 65 km/h 40.4 mph) on specific routes when traffic is congested.
Other key manufacturers in the connected market include Bosch, Continental, HARMAN, Airbiquity and Visteon, among others.
Markets
One of the main reasons to expect the connected car market to grow is the increased demand for infotainment (a type of in-vehicle media that combines information and entertainment) and navigation services. This occurs particularly in China, India, Japan and South Korea.
The industry is also affected by several other factors, including population growth, urbanization, the economy, and new safety regulations in many regions such as Japan and South Korea.
In 2017, the Chinese Ministry of Industry and Information Technology (MIIT) and the China Standardization Administration (SAC) published a blueprint to establish national standards for China's Intelligent and Connected Vehicles (ICV). As a result, China is likely to introduce road and vehicle safety management soon. Baidu and Alibaba, which are China's biggest technology companies, are pushing to develop platforms for connected cars.
Japanese automotive companies are also developing and implementing assistance features for connected cars. In 2019, Airbiquity announced that it has become part of the Japan Automotive Software Platform and Architecture (JASPAR) — an organization committed to advancing the standardization of software and networks in vehicles to improve development efficiency and reliability.
In India, the automobile industry has had great potential, but there have also been challenges.
“The backbone of the automobile business is its category of workers. Due to its emergence and survival as a disorganized belt, it has not been scaled enough,” said Munira Loliwala, Business Head – EMPI, TeamLease Services, in a recent press release. This could affect the connected car market.
“Lack of design and design related experiences, gaps in programming capabilities, insufficient interpersonal growth and inadequate training department in the components industry continue to be a challenge,” added Loliwala.
However, Indian manufacturers supply various automobile-related components, including engine parts, transmission and steering parts, chassis and chassis, electrical equipment and parts, etc. The automotive components business is estimated to be a $57 billion industry with many job opportunities. With the right strategy, the connected automotive industry can deliver even more.
“The Indian automobile industry plans to create almost 65 million additional jobs by 2026 – around 32 million people are directly and second-hand employed by the sector, of which at least 65% are contract workers,” said Loliwala. This means there are huge opportunities in India for car manufacturers and engineers.