Market Trends of Connected Car Devices Industry
This section covers the major market trends shaping the Connected Car Devices Market according to our research experts:
Increasing Electrification and Automation
The increasing electrification and automation in the automotive industry are expected to drive the market significantly during the forecast period. Heavy investments from automakers are expected to cater to the growing demand for EVs and play a major role in the evolution of the electric vehicle market. OEMs offer electric vehicles in different segments ranging from hatchbacks such as Nissan Leaf to high-end sedans like Tesla Model 3. For instance,
Ford company had previously committed to spending USD 11.5 billion on electrifying its vehicle lineup through 2022, and in its recent announcement, it increased its investment in autonomous and electric vehicles amid continuous lockdowns to boost vehicle sales.
Government regulations and permissions are also being observed, driving the growth faster towards automation and connected vehicles. For instance, The Department for Transport - United Kingdom, in April 2021, said automated lane-keeping systems (ALKS) would be the first type of hands-free driving legalized.
The higher number of self-driving cars operating on the road has made roads relatively safer compared to the previous years. Manufacturers of these cars have reported a positive growth rate in the increase in accident prevention. For instance, in August 2022, Tesla published that its autopilot enabled cars to prevent approximately 40 possible car crashes every day. Owing to such reliable car capabilities, there is an increasing demand for connected cars and consequently, connected car devices. This is expected to drive significant revenue into the market during the forecast period.
Europe and North America Dominating the Market
The European and North American regions are expected to dominate the connected car device market, followed by Asia-Pacific.
The United States is considered to be a pioneer, in terms of vehicle connectivity. The US Transportation Department has taken a new initiative to accelerate the deployment of vehicle-to-vehicle (V2V) communications technology. This new proposal is expected to be mandatory by 2023. Additionally, the demand for smart solutions in the fields of mobility, vehicle management, safety, and driver assistance, has been continually increasing in the country over the past few years, and integration of these cutting-edge technologies has been one of the crucial parameters for customers in purchasing new vehicles.
In the EU, the European parliament implemented the regulation, mandating e-call systems in vehicles that ensure the passenger's safety, and it has been estimated that they may save more than 2,500 lives on the road. These initiatives and favorable regulations increase the number of connected vehicles on roads, which further creates a huge demand for connected vehicle services and connected vehicle devices.
In the Asia-Pacific region, China leads the market for connected car devices, followed by Japan. The demand for embedded connectivity in vehicles from the consumers and the shift toward connected vehicles has expanded the market for connected car devices in the country.
