The global automotive connectivity market is projected to register at a moderate-paced CAGR of 19% over the forecast period. The automotive connectivity market is currently valued at US$ 33.42 Billion in 2023. By 2033, demand for automotive connectivity is expected to reach a high of US$ 190.29 Billion.
This growth in the adoption of automotive connectivity is supported by the following:
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Market analysts believe that the driver assistance subsector would grow at the highest rate during the next few years. The adaptive cruise control, lane-keeping aid, 360-degree camera, park-assist, and other high-tech technologies that make driving safer make up the advanced driver assistance system. Governments across the world have mandated extremely high safety standards for the vehicle industry. As an illustration, in April 2020, the car industry in India adopted the BS-VI specification, which mandated the installation of rear parking sensors across the board.
When it comes to market share, mobility management is in second place. The driver will be able to get there quickly, efficiently, and safely with the help of this technology. To top it all off, it provides useful data like current road and weather conditions and alternate routes to take in real-time to avoid potential dangers in the outside environment.
The market share of car telematics is expected to increase significantly. Demand for connected telematics solutions is anticipated to rise during the projected period as information technology infrastructure along roads improves to allow for more seamless connections to mobile networks.
Over the projected period, the demand for the infotainment system is also expected to expand at a healthy rate. In-car entertainment systems have emerged as a critical safety feature in recent years. Manufacturers are responding to this need by incorporating increased infotainment features - such as Wi-Fi, social media integration, smartphone app integration, and sophisticated mobile office platforms - into their vehicles.
| Attribute | Details |
|---|---|
| Market Value (2023) | US$ 33.42 Billion |
| Market Value (2033) | US$ 190.29 Billion |
| CAGR | 19% |
An increase in requests for end users' simplicity, security, and convenience.
The key factor propelling the automotive connectivity market is the growing prevalence of Advanced Driver Assistance Systems (ADAS) in vehicles. Governments in many different countries also prioritize making certain ADAS and safety elements mandatory. In both the United States and Europe, several ADAS features are required by law. For instance, in the European Union (EU), Anti-lock Braking System (ABS) has been required in automobiles. since 2004, and Electronic Stability Control (ESC) has been required since 2014. Since 2015, Autonomous Emergency Braking (AEB) has been required equipment for all commercial vehicles sold in the European Union (EU). Furthermore, all new cars sold in the EU must include automotive connectivity capabilities such as e-call as of April 2018.
Demand Driven by Rising ADAS Adoption Rates
The expansion of the automotive connectivity market is anticipated to be fueled by the increasing popularity of ADAS. The widespread incorporation of ADAS in vehicles is anticipated to lessen traffic deaths owing to the widespread use of software algorithms, sensors, cameras, processors, and other innovative technologies for mapping road obstructions. For instance, in 2018, the global toll from traffic accidents reached 1.35 million, as reported by the World Health Organization's (WHO) Road Safety report.
Fears for the safety and security of passengers have prompted governments to impose strict safety rules on the auto industry, mandating the inclusion of ADAS systems in all new vehicles. For instance, in 2013, the National Highway Traffic Safety Administration (NHTSA) of the United States mandated that all vehicle classes be equipped with Anti-lock Braking Systems (ABS) under the Federal Motor Vehicle Safety Standard (FMVSS). Just as one of the most important aspects of linked vehicles, an e-call system, will be required in all new vehicles starting in April 2018, as mandated by the European Commission (EC) in 2015.
Inadequate facilities for Internet-connected vehicles to perform effectively.
Roadside infrastructure hinders the transmission of data between vehicles and the cloud. Information technology (IT) highway development is lagging behind more developed economies in countries like Mexico, Brazil, and India. Presently, only densely populated places may use 3G and 4G-LTE networks. Despite the presence of many 3PLs in rural and semi-urban areas, poor infrastructure means that they are unable to fully serve their customers.
Due to this, the automotive connectivity industry in developing regions may be stunted by a lack of information technology and communication infrastructure as well as a lag in government norms. In addition, as service providers, companies in the telecom industry may be subject to laws governing telecom in their respective countries, such as those governing lawful intercept and the establishment of a local presence. We need to examine and regulate the interoperability of the various platforms and the international use cases that will arise from this. The issue of net neutrality, in which internet service providers give some data transmission priority, is also brought up by the widespread use of data networks.
Principal Consultant
During the forecast period, it is expected that the 5G sector will constitute the largest portion of the market. Multiple telecommunications firms are working on next-generation 5G networks to improve the connectivity between vehicles and other devices. The 5G Automotive Association estimates that with a flawless 5G network, over 60% of traffic accidents might be prevented. Examples include a US$1.5 Billion joint investment in a 5G network development partnership between South Korea and the EU for domestic initiatives. We anticipate that this will help reduce the alarming increase in traffic accidents.
Over the projected period, the satellite industry is anticipated to show the highest growth rate. Cellular and Wi-Fi networks are only stable enough in densely populated urban areas to support linked autos. A connected car is completely cut off from the network when it leaves the range of a mobile tower, which could be quite dangerous for passengers.
Many Original Equipment Manufacturers (OEMs), satellite operators, and mobile operators are working to create hybrid satellite-terrestrial networks to circumvent this issue and provide constant connectivity. So, the growth of the connected-vehicle market would be fuelled by the need for faster satellite and 5G connections.
The automotive connectivity industry in the United States is growing rapidly, and one reason is the increased emphasis on safety and security OEMs, consumers, and governments have all emphasized increasing car security and safety in recent years. Technologies like automated braking and lane-keeping aids have made driving much safer in recent years. Traffic accidents are reduced because of these technologies' impact on violators 'behavior.
Crash imminence braking (CIB), dynamic brake support (DBS), and other promising technologies like pedestrian automatic emergency braking (PAEB) are just a few examples of what the National Highway Traffic Safety Administration (NHTSA) of the USA Department of Transportation recommends for improving road safety. To increase the penetration of the USA automotive connectivity market in the next years, the NHTSA collaborates with industry partners and safety advocates to raise consumer awareness regarding the use of such technology for passenger safety.
Germany has emerged as Europe's central pillar for the soaring demand for internet-connected vehicles. Many regional businesses are teaming up with competitors to advance autonomous vehicle technology. To help countries meet their emission goals, most autonomous vehicles were using electric powertrains.
Innovation in the automotive connectivity industry is flourishing thanks to the prevalence of innovative technologies such as AI and its offshoot, machine learning; computer vision; IoT; cloud technologies; smart robotics; and mobility; all of which are backed by governments to increase sales of automotive connectivity.
Due to the prohibitive cost of developing and producing autonomous/driverless vehicles, many German automakers have begun working together or signing cooperative agreements to pool resources and improve research and development. As a result, the potential for expansion in the European Union's automotive connectivity market has increased.
Mercedes received a large order for Level 3 autonomous vehicles in May of 2022. The key features of both connected cars and driverless cars will be enabled by the drive pilot mode built into these vehicles.
The automotive connectivity market in Germany is poised to grow over the next few years thanks to the country's robust Research and Development infrastructure and the efforts of the country's various automakers.
Sales of passenger vehicles in China, one of the world's largest automobile marketplaces, topped 21.48 million in 2021, up 6 percent from the previous year. China is still one of the world's largest vehicle markets, so predictive technology has a huge chance to establish itself there despite the pandemic.
The government of China is investing heavily in innovative automotive technology including advanced driver assistance systems (ADAS) and electric transportation. Major automakers in the country are responding by adding the next generation of advanced driver assistance systems (ADAS), known as level 2 and level 3, to their product lines. Just one example:
The new Chitu compact SUV, released in May 2021, is powered by a 1.5L turbocharged engine (maximum power output of 135kW, peak torque of 275Nm) paired with a 7-speed wet dual-clutch transmission from the HAVAL division of Great Wall Motor Co. Ltd. In addition, there is a Level 2 ADAS system in the car, the precise features of which might change from model to model.
Many new products are being introduced to the market, and India has started making moves towards an autonomous and artificial intelligence-focused automotive industry, so there is room for growth in the sales of automotive connectivity.
Launched in 2021, Morris Garage's new SUV Gloster includes innovative, predictive-technology-based ADAS features like automatic emergency braking, automatic parking assistance, blind spot detection, frontal collision warning, and lane departure warning. The Astor, MG's new compact SUV that debuted in 2021, is equipped with level-2 Adaptive Cruise Control, Automatic Emergency Braking, Blind Spot Detection, Lane Keeping Assist, and Lane Departure Warning ADAS capabilities for an inexpensive price.
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Quality and compliance tests and certifications for automotive connectivity modules can be complex and time-consuming. As a result, companies like Rolling Wireless and LG that specialize in car networking modules dominate the industry. As a result of its success in the Chinese market, IoT module market leader Quectel has entered the top three. Telecom providers in North America and Europe have approved Quectel's automotive-grade modules. Traditional specialists like Rolling Wireless, LG, Continental, and Harman will face stiff competition as a result.
Even though the automotive transition presents an alluring revenue potential, the entry barriers for IoT module players are still substantial. However, Chinese IoT module players will face challenges reaching overseas markets because of geopolitical trade conflicts and data security concerns.
To meet the rising demand for connectivity and mitigate supply-chain risks, automakers will look to diversify the sources of their modules. Moreover, several developing nations like India, Indonesia, Thailand, and Brazil are likely to want to establish their own manufacturing ecosystem to gain more influence over their respective supply chains.
The growth outlook for the Automotive connectivity market is predicted to advance at a CAGR of 19% from 2023 to 2033.
Asia Pacific is anticipated to lead the Automotive connectivity market over the forecast period.
The valuation of the Automotive connectivity market stands at US$ 33.42 Billion in 2023.
The Automotive connectivity market is likely to hold a valuation of US$ 190.29 Billion by 2033.
1. Executive Summary | Automotive connectivity Market 1.1. Global Market Outlook 1.2. Demand-side Trends 1.3. Supply-side Trends 1.4. Technology Roadmap Analysis 1.5. Analysis and Recommendations 2. Market Overview 2.1. Market Coverage / Taxonomy 2.2. Market Definition / Scope / Limitations 3. Market Background 3.1. Market Dynamics 3.1.1. Drivers 3.1.2. Restraints 3.1.3. Opportunity 3.1.4. Trends 3.2. Scenario Forecast 3.2.1. Demand in Optimistic Scenario 3.2.2. Demand in Likely Scenario 3.2.3. Demand in Conservative Scenario 3.3. Opportunity Map Analysis 3.4. Investment Feasibility Matrix 3.5. PESTLE and Porter’s Analysis 3.6. Regulatory Landscape 3.6.1. By Key Regions 3.6.2. By Key Countries 3.7. Regional Parent Market Outlook 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 4.1. Historical Market Size Value (US$ Million) Analysis, 2018 to 2022 4.2. Current and Future Market Size Value (US$ Million) Projections, 2023 to 2033 4.2.1. Y-o-Y Growth Trend Analysis 4.2.2. Absolute $ Opportunity Analysis 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 5.1. Introduction / Key Findings 5.2. Historical Market Size Value (US$ Million) Analysis By Application, 2018 to 2022 5.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Application, 2023 to 2033 5.3.1. Powertrain 5.3.2. Comfort, Convenience, and Entertainment 5.3.3. Safety and Security 5.3.4. Body Wiring and Power Distribution 5.3.5. Navigation and Instrumentation 5.4. Y-o-Y Growth Trend Analysis By Application, 2018 to 2022 5.5. Absolute $ Opportunity Analysis By Application, 2023 to 2033 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Vehicle Type 6.1. Introduction / Key Findings 6.2. Historical Market Size Value (US$ Million) Analysis By Vehicle Type, 2018 to 2022 6.3. Current and Future Market Size Value (US$ Million) Analysis and Forecast By Vehicle Type, 2023 to 2033 6.3.1. Passenger Car 6.3.2. Commercial Vehicle 6.4. Y-o-Y Growth Trend Analysis By Vehicle Type, 2018 to 2022 6.5. Absolute $ Opportunity Analysis By Vehicle Type, 2023 to 2033 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. Introduction 7.2. Historical Market Size Value (US$ Million) Analysis By Region, 2018 to 2022 7.3. Current Market Size Value (US$ Million) Analysis and Forecast By Region, 2023 to 2033 7.3.1. North America 7.3.2. Latin America 7.3.3. Europe 7.3.4. South Asia 7.3.5. East Asia 7.3.6. Oceania 7.3.7. Middle East and Africa(MEA) 7.4. Market Attractiveness Analysis By Region 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 8.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 8.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 8.2.1. By Country 8.2.1.1. USA 8.2.1.2. Canada 8.2.2. By Application 8.2.3. By Vehicle Type 8.3. Market Attractiveness Analysis 8.3.1. By Country 8.3.2. By Application 8.3.3. By Vehicle Type 8.4. Key Takeaways 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 9.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 9.2.1. By Country 9.2.1.1. Brazil 9.2.1.2. Mexico 9.2.1.3. Rest of Latin America 9.2.2. By Application 9.2.3. By Vehicle Type 9.3. Market Attractiveness Analysis 9.3.1. By Country 9.3.2. By Application 9.3.3. By Vehicle Type 9.4. Key Takeaways 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 10.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 10.2.1. By Country 10.2.1.1. Germany 10.2.1.2. United Kingdom 10.2.1.3. France 10.2.1.4. Spain 10.2.1.5. Italy 10.2.1.6. Rest of Europe 10.2.2. By Application 10.2.3. By Vehicle Type 10.3. Market Attractiveness Analysis 10.3.1. By Country 10.3.2. By Application 10.3.3. By Vehicle Type 10.4. Key Takeaways 11. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 11.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 11.2.1. By Country 11.2.1.1. India 11.2.1.2. Malaysia 11.2.1.3. Singapore 11.2.1.4. Thailand 11.2.1.5. Rest of South Asia 11.2.2. By Application 11.2.3. By Vehicle Type 11.3. Market Attractiveness Analysis 11.3.1. By Country 11.3.2. By Application 11.3.3. By Vehicle Type 11.4. Key Takeaways 12. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 12.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 12.2.1. By Country 12.2.1.1. China 12.2.1.2. Japan 12.2.1.3. South Korea 12.2.2. By Application 12.2.3. By Vehicle Type 12.3. Market Attractiveness Analysis 12.3.1. By Country 12.3.2. By Application 12.3.3. By Vehicle Type 12.4. Key Takeaways 13. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 13.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 13.2.1. By Country 13.2.1.1. Australia 13.2.1.2. New Zealand 13.2.2. By Application 13.2.3. By Vehicle Type 13.3. Market Attractiveness Analysis 13.3.1. By Country 13.3.2. By Application 13.3.3. By Vehicle Type 13.4. Key Takeaways 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14.1. Historical Market Size Value (US$ Million) Trend Analysis By Market Taxonomy, 2018 to 2022 14.2. Market Size Value (US$ Million) Forecast By Market Taxonomy, 2023 to 2033 14.2.1. By Country 14.2.1.1. GCC Countries 14.2.1.2. South Africa 14.2.1.3. Israel 14.2.1.4. Rest of Middle East and Africa(MEA) 14.2.2. By Application 14.2.3. By Vehicle Type 14.3. Market Attractiveness Analysis 14.3.1. By Country 14.3.2. By Application 14.3.3. By Vehicle Type 14.4. Key Takeaways 15. Key Countries Market Analysis 15.1. USA 15.1.1. Pricing Analysis 15.1.2. Market Share Analysis, 2021 15.1.2.1. By Application 15.1.2.2. By Vehicle Type 15.2. Canada 15.2.1. Pricing Analysis 15.2.2. Market Share Analysis, 2021 15.2.2.1. By Application 15.2.2.2. By Vehicle Type 15.3. Brazil 15.3.1. Pricing Analysis 15.3.2. Market Share Analysis, 2021 15.3.2.1. By Application 15.3.2.2. By Vehicle Type 15.4. Mexico 15.4.1. Pricing Analysis 15.4.2. Market Share Analysis, 2021 15.4.2.1. By Application 15.4.2.2. By Vehicle Type 15.5. Germany 15.5.1. Pricing Analysis 15.5.2. Market Share Analysis, 2021 15.5.2.1. By Application 15.5.2.2. By Vehicle Type 15.6. United Kingdom 15.6.1. Pricing Analysis 15.6.2. Market Share Analysis, 2021 15.6.2.1. By Application 15.6.2.2. By Vehicle Type 15.7. France 15.7.1. Pricing Analysis 15.7.2. Market Share Analysis, 2021 15.7.2.1. By Application 15.7.2.2. By Vehicle Type 15.8. Spain 15.8.1. Pricing Analysis 15.8.2. Market Share Analysis, 2021 15.8.2.1. By Application 15.8.2.2. By Vehicle Type 15.9. Italy 15.9.1. Pricing Analysis 15.9.2. Market Share Analysis, 2021 15.9.2.1. By Application 15.9.2.2. By Vehicle Type 15.10. India 15.10.1. Pricing Analysis 15.10.2. Market Share Analysis, 2021 15.10.2.1. By Application 15.10.2.2. By Vehicle Type 15.11. Malaysia 15.11.1. Pricing Analysis 15.11.2. Market Share Analysis, 2021 15.11.2.1. By Application 15.11.2.2. By Vehicle Type 15.12. Singapore 15.12.1. Pricing Analysis 15.12.2. Market Share Analysis, 2021 15.12.2.1. By Application 15.12.2.2. By Vehicle Type 15.13. Thailand 15.13.1. Pricing Analysis 15.13.2. Market Share Analysis, 2021 15.13.2.1. By Application 15.13.2.2. By Vehicle Type 15.14. China 15.14.1. Pricing Analysis 15.14.2. Market Share Analysis, 2021 15.14.2.1. By Application 15.14.2.2. By Vehicle Type 15.15. Japan 15.15.1. Pricing Analysis 15.15.2. Market Share Analysis, 2021 15.15.2.1. By Application 15.15.2.2. By Vehicle Type 15.16. South Korea 15.16.1. Pricing Analysis 15.16.2. Market Share Analysis, 2021 15.16.2.1. By Application 15.16.2.2. By Vehicle Type 15.17. Australia 15.17.1. Pricing Analysis 15.17.2. Market Share Analysis, 2021 15.17.2.1. By Application 15.17.2.2. By Vehicle Type 15.18. New Zealand 15.18.1. Pricing Analysis 15.18.2. Market Share Analysis, 2021 15.18.2.1. By Application 15.18.2.2. By Vehicle Type 15.19. GCC Countries 15.19.1. Pricing Analysis 15.19.2. Market Share Analysis, 2021 15.19.2.1. By Application 15.19.2.2. By Vehicle Type 15.20. South Africa 15.20.1. Pricing Analysis 15.20.2. Market Share Analysis, 2021 15.20.2.1. By Application 15.20.2.2. By Vehicle Type 15.21. Israel 15.21.1. Pricing Analysis 15.21.2. Market Share Analysis, 2021 15.21.2.1. By Application 15.21.2.2. By Vehicle Type 16. Market Structure Analysis 16.1. Competition Dashboard 16.2. Competition Benchmarking 16.3. Market Share Analysis of Top Players 16.3.1. By Regional 16.3.2. By Application 16.3.3. By Vehicle Type 17. Competition Analysis 17.1. Competition Deep Dive 17.1.1. TE Connectivity Ltd 17.1.1.1. Overview 17.1.1.2. Product Portfolio 17.1.1.3. Profitability by Market Segments 17.1.1.4. Sales Footprint 17.1.1.5. Strategy Overview 17.1.1.5.1. Marketing Strategy 17.1.2. Yazaki Corporation 17.1.2.1. Overview 17.1.2.2. Product Portfolio 17.1.2.3. Profitability by Market Segments 17.1.2.4. Sales Footprint 17.1.2.5. Strategy Overview 17.1.2.5.1. Marketing Strategy 17.1.3. J.S.T. Mfg. Co. Lt. 17.1.3.1. Overview 17.1.3.2. Product Portfolio 17.1.3.3. Profitability by Market Segments 17.1.3.4. Sales Footprint 17.1.3.5. Strategy Overview 17.1.3.5.1. Marketing Strategy 17.1.4. Molex Incorporated (Koch Industries Inc.) 17.1.4.1. Overview 17.1.4.2. Product Portfolio 17.1.4.3. Profitability by Market Segments 17.1.4.4. Sales Footprint 17.1.4.5. Strategy Overview 17.1.4.5.1. Marketing Strategy 17.1.5. Amphenol Corporation 17.1.5.1. Overview 17.1.5.2. Product Portfolio 17.1.5.3. Profitability by Market Segments 17.1.5.4. Sales Footprint 17.1.5.5. Strategy Overview 17.1.5.5.1. Marketing Strategy 17.1.6. Luxshare Precision Industry Co. Ltd 17.1.6.1. Overview 17.1.6.2. Product Portfolio 17.1.6.3. Profitability by Market Segments 17.1.6.4. Sales Footprint 17.1.6.5. Strategy Overview 17.1.6.5.1. Marketing Strategy 17.1.7. Aptiv PLC 17.1.7.1. Overview 17.1.7.2. Product Portfolio 17.1.7.3. Profitability by Market Segments 17.1.7.4. Sales Footprint 17.1.7.5. Strategy Overview 17.1.7.5.1. Marketing Strategy 17.1.8. Hirose Electric Co. Ltd 17.1.8.1. Overview 17.1.8.2. Product Portfolio 17.1.8.3. Profitability by Market Segments 17.1.8.4. Sales Footprint 17.1.8.5. Strategy Overview 17.1.8.5.1. Marketing Strategy 17.1.9. Samtec 17.1.9.1. Overview 17.1.9.2. Product Portfolio 17.1.9.3. Profitability by Market Segments 17.1.9.4. Sales Footprint 17.1.9.5. Strategy Overview 17.1.9.5.1. Marketing Strategy 17.1.10. Lumberg Holding 17.1.10.1. Overview 17.1.10.2. Product Portfolio 17.1.10.3. Profitability by Market Segments 17.1.10.4. Sales Footprint 17.1.10.5. Strategy Overview 17.1.10.5.1. Marketing Strategy 17.1.11. Sumitomo Wiring Systems Ltd 17.1.11.1. Overview 17.1.11.2. Product Portfolio 17.1.11.3. Profitability by Market Segments 17.1.11.4. Sales Footprint 17.1.11.5. Strategy Overview 17.1.11.5.1. Marketing Strategy 18. Assumptions & Acronyms Used 19. Research Methodology
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Automotive connectivity Market
