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Europe Connected Cars Market

Market Insights on Europe Connected Cars covering sales outlook, demand forecast & up-to-date key trends

Europe Connected Cars Market by Communication Type, Connectivity Technology, Application, Vehicle Type, End Users & Country - Forecast 2022-32

Europe Connected Cars Market (2022 - 2032)

The Europe connected cars market revenue by the end of 2021 was US$ 10.2 Bn. The Europe connected cars market is expected to reach US$ 49.7 Bn by 2032, as it is estimated to grow at a CAGR of 15.6% for 2022-2032.

Estimated Year (2022) Market Value

US$ 11.6 Bn

Projected Year (2032) Market Value

US$ 49.7 Bn

CAGR% (2022-2032)

15.6%

Top 5 Vendor Market Share

Around 45%

Connected automobiles allow car owners to engage with all connected devices inside and outside their vehicles, as well as maintain a safe distance between vehicles on the road. These vehicles also enable drivers to mechanically check the physical condition and performance of the vehicle. Connected automated driving can also be utilised to connect smartphones and other mobile devices to automobiles.

Customers have access to the vehicle via connectivity solutions, which relay current information about the vehicle's performance. The services and products of the connected car market are divided into sensors, fleet managers, cellular modules, wireless processors, OEM services, wireless and aftermarket services.

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2017-2021 Europe Connected Cars Market Demand Outlook Compared to 2022-2032 Forecast

The European connected car market is estimated to grow at a CAGR of 15.6% for the forecast period.

Connected driving experiences are in high demand. Auto manufacturers and OEMs (original equipment manufacturers) are working towards implementing connected car technologies. Safety-related legislative actions will have a significant impact on OEM technology uptake across Europe. The increased demand for electric vehicles among European customers is critical to the growth of the market for linked automobiles. The industry is expected to grow due to widespread adoption of wireless and mobile technologies.

Furthermore, the EU government is establishing different vehicle-related rules and regulations, which is a welcome step for connected car manufacturers and dealers. The availability of modern telecommunications and road infrastructure will also continue to stimulate the European automobile market. OEMs are focusing on strengthening the market.

5G Is Critical to The Growth of the Connected Car Market

The advancement of 5G enabled automobile is a crucial development of the connected car market over the forecast period. Technology provides a feature where car owners can communicate effectively with each other.

Fifth-generation wireless technology is expected to connect everything around us with an ultra-fast, fully responsive network. 5G will improve technologies like virtual reality, the Internet of Things (IoT), and artificial intelligence. Due to this, companies are focusing on the adoption and development of 5G in connected cars. and can manage vehicle speeds with a smart motor. Several uses of the 5G network implemented in cars indicate the growing demand for the connected car market. And also, the different prospects of vehicles' IoT as a technology for autonomous driving and vehicle security have risen with connected cars.

Sudip Saha
Sudip Saha
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Country wise insights

Germany Will Continue to Be the Growth Epicentre for Connected Cars

Germany stood out among the countries of the European Union as the main support for the increasing demand for linked cars. Numerous businesses are collaborating with other market participants to create innovative technology for autonomous vehicles. The majority of autonomous vehicles use electric powertrains, which is advantageous for countries trying to meet their objectives to reduce their emission levels. New technologies, supported by governments to increase connected car sales, are fostering innovation in the connected and autonomous vehicle industries.

Due to the high cost of developing, testing, and producing driverless and autonomous vehicles in Germany, businesses are concentrating on enhancing their R&D through a variety of partnerships and agreements.

Connected Cars Demand in U.K. Is Being Driven by Real Time Data and Advance Technologies for Seamless Development of Connected Cars

Leading connected car developers are getting funding from investment firms to make cybersecurity adoption in linked cars possible. This is included to ensure secure data transport. In order to provide a better driving experience, top automakers are also introducing new autonomous, linked automobiles.

The connected car market in the UK is expanding as a result of top companies operating there developing to offer better and more effective linked car services. Additionally, adding cutting-edge features like ADAS (advanced driver assistance systems) has allowed automakers to provide connected vehicle services, ultimately spurring industry expansion.

The expansion of the connected automobile market in the UK is being driven by increasing interest in real-time data-enabled solutions to enhance the operation of transportation systems as well as growing government attention to enhancing road safety.

The Automobile Industry in France Is Pivoting Towards New Vehicle Architectures and 5G Spectrum

The French transportation industry is shifting to data-based mobility, with automotive OEMs investing heavily in digital technologies and placing more focus on collaborating with solution providers in a range of fields, including security, connectivity and software.

The main elements driving the development of the connected car market in France are rising public awareness of the importance of driving safety and a supportive legislative environment that encourages the commercialization of connected car applications.

Several car companies operating in France have developed connected services that will eventually support the expansion of the connected car market in the nation. Due to the cooperation of top connected vehicle firms and the implementation of the 5G network for connected cars, the market for connected cars is predicted to increase exponentially. Furthermore, wireless service providers are aiming to develop cutting-edge wireless platforms for connected cars, which is also anticipated to support the market's expansion.

Category wise Insights     

Why the demand for the Vehicle-To-Vehicle (V2V) in Europe Connected Cars Market Has the Highest Market Share?

The Vehicle-to-Vehicle segment is expected to dominate the market during the forecast period. Technological advances are becoming more and more common in vehicle-to-vehicle (V2V) communication trends. Large companies involved in vehicle-to-vehicle communication focus on developing new technical solutions to strengthen their position.

Vehicle-to-vehicle communication can help reduce traffic congestion in large cities, improve road safety, and improve passenger comfort. The development of wireless technology and increasing deployment of advanced devices such as sensors and GPS in V2V systems are expected to maintain the dominance of this segment during the forecast period.

Growing interest in traffic safety is expected to boost the growth of the vehicle-to-vehicle communication market in the future. V2V technology helps establish efficient traffic management and saves time for vehicle users. As cars communicate with their environment, information about road signs, traffic signs, traffic jams, and traffic diversions can help determine the best route between the starting point and destination.

Why adoption of 5G connectivity in Europe Connected Cars Market is Increasing?

5G is an integral part of the transformation of the automotive industry, especially as it relates to connected cars, and how automotive original equipment manufacturers (OEMs) design and build vehicles, how they perform on the road, and how they interact with customers. Mobile network providers are already providing these capabilities with the seamless integration of 5G.

Car vendors like Hyundai and MG Hector are implementing technologies to include internet connectivity within their vehicles and 5G connectivity can help these companies expand upon their solution offerings. 

For these reasons, 5G Connectivity segment to grow at a CAGR of 18.6% for the forecast period.

How Driver Assistance Is Driving the Growth of Europe Connected Cars Market?

Driver assistance systems are designed not only to increase driver safety but also to provide a more comfortable and easier driving experience to the driver. Driver assistance systems consist of several components that perform some basic operations like lane assist, pre-crash systems, etc. 

Advanced Driver Assistance Systems are passive and active safety electronic systems within a vehicle that use advanced technology to assist the driver in eliminating human error during vehicle operation. It offers a variety of applications such as lane departure warning/correction, pedestrian detection/avoidance, automatic emergency braking traffic sign recognition and blind spot detection.

Key market players are launching advanced driver assistance systems for highly automated vehicles such as connected cars, which evidently driving the growth of the Europe Connected Cars Market.

Due to these factors, Driver Assistance Segment had the larger market share of 28.2%.

How Passenger Cars Are Fuelling the Growth of Europe Connected Cars Market?

Rising demand for comfort, convenience, and safety is driving the market for vehicles with advanced HMI (human-machine interface) capabilities, more connected technology, and the integration of advanced driver assistance system (ADAS) solutions. Growing demand for electric vehicles from European customers is playing a key role in boosting the market for connected driving experiences. The market is expected to gain strong traction due to the proliferation of mobile and wireless technologies.

An in-vehicle infotainment system is the interface between various parties, i.e., customers, Internet service providers, and companies that manufacture vehicles, home appliances, and electronics. Growing customer awareness of connected car services and an increasing willingness to pay for premium features are contributing to the growth of connected cars in the European market.

How Automotive OEMs Are Supporting the Growth of Europe Connected Cars Market?

Increasing technological developments such as uninterrupted connectivity, cyber security, and development of self-driving vehicles with integrated and highly secure software are expected to support OEM dominance over the forecast period. Moreover, increasing partnerships with key players to develop high quality and cost effective components is another reason driving the growth of the OEM segment.

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Competitive Landscape

With players including Denso Corporation, Continental AG, Autoliv, Robert Bosch GmbH, Harman International, and Delphi Automotive LLP, the European connected car industry is somewhat concentrated. As the need for linked systems in the area increases, connected-car manufacturers are developing new products with cutting-edge technology in an effort to get an advantage over their rivals. As a result, businesses are concentrating on the application and advancement of 5G in vehicles to obtain a competitive edge over other market participants.

  • In May 2022, in a joint effort to create safe and dependable connected vehicle solutions, Harman and Amazon announced their collaboration for the creation of cutting-edge software-defined vehicles that will aid OEMs in overcoming a number of reliability and safety issues.
  • In March 2022, a software innovation initiative was established by Denso Corporation as part of its new mobility-cantered society. The training programme featured optional activities to instruct cloud computing engineers as well as ADAS vision sensor recognition technologies.

Scope of report

Attribute

Details

Market value in 2021

US$ 10.2 Bn

Market CAGR 2022 to 2032

15.6%

Share of top 5 players

Around 45%

Forecast Period

2022-2032

Historical Data Available for

2017-2021

Market Analysis

USD Billion for Value

Key Countries Covered

Germany, U.K., France, Spain, Italy, Benelux, Russia, Rest of Europe

Key Segments Covered

By Communication Type, By Connectivity Technology, By Application, By Vehicle Type, By End User & By Country

Key Companies Profiled

  • Bosch
  • Harman
  • Airbiquity
  • Visteon
  • Continental AG
  • Audi AG
  • BMW Group
  • Autoliv Inc.
  • Delphi Automotive LLP
  • Diamler AG
  • Verizon Communication
  • Denso Corporation.

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Europe Connected Cars Market by Category

By Communication Type:

  • Vehicle-To-Vehicle (V2V)
  • Vehicle-To-Infrastructure (V2I)
  • Vehicle-To-Pedestrian (V2P)
  • Others

By Connectivity Technology:

  • 3G
  • 4G LTE
  • 5G
  • Others

By Application:

  • Driver Assistance
  • Infotainment
  • Vehicle Safety & Security
  • Telematics & Navigation
  • Others

By Vehicle Type:

  • Passenger Cars
  • Commercial Vehicles

By End User:

  • Automotive OEMs
  • Automotive Aftermarket

By Country :

  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Benelux
  • Russia
  • Rest of Europe

Frequently Asked Questions

Some leading of the European connected cars market are Bosch, Harman, BMW Group and Visteon.

Spain is estimated to have the highest growth for the North America keyless vehicle access control system during the forecast period of 16.2%.

Developing the utility of the cars and improving the safety while driving.

Vehicle-To-Vehicle (V2V) had the largest market share for the Europe connected cars market of 34.8% in 2021.

Vehicle-To-Infrastructure (V2I) have the highest CAGR of 15.9% for the forecast period.

4G LTE has the highest market share for Europe connected cars of 59.5% for the year 2021.

The market share of UK for the year 2021 for the Europe connected cars market was 26.2%.

Germany had a market share of 31.1% in 2021 for Europe connected cars market.

France had the market share of 19.8% for 2021.

The estimated market value for Europe connected cars for the year 2023 is US$ 13.3 Bn.

The growth rate for 5G in connectivity technology for Europe connected cars market is 18.6% for the forecast period.

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Sudip Saha
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Europe Connected Cars Market