North America Connected Car Market Size (2024 - 2029)

North America Connected Car Market Analysis

Currently, North America Connected Car Market is valued at USD 30.05 billion and is expected to reach USD 114.40 billion in the next five years, registering a CAGR of 25% during the forecast period (2022-2027).

As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.

Over the long term, increasing investments in R&D by major industry players, rising Internet penetration, availability of 5G, falling data costs, and growing preference of customers for connectivity features over mechanical specifications of vehicles and a rise in sales of electric and autonomous vehicles are creating demand in the automotive and transportation industry with a surge in sales of connected vehicles in North American market.

Key players in the market are expanding their presence in digital mobility to cater to the increased demand for connected cars. For instance, in October, 2022: Ford Motor Co. opened Ford Atlanta Research and Innovation Center (FARIC) in Atlanta in United States, to accelerate the digital transfofmation in the company. The R&D Centre will focus on developing and testing new technologies for connected vehicles, application of artificial intelligence in obility and identifying new partnerships for university research in connected mobility.

The United States is anticipated to be the dominant market for connected cars in the region due to the large prescence of automotive OEMs, high levels of technology awareness amongst the general car buyers, preference for infotainment and telematics in vehiclles, wideperad adoption of 4G/5G and growing sales of electric, connected and autonomous vehicles in the country.

North America Connected Car Industry Segmentation

A connected car is defined as a car that offers in-vehicle connectivity to the Internet. The connected cars or vehicles access the Internet through LAN (Local Area Network) or WLAN (Wireless Local Area Network) networks. The connected cars or vehicles share internet access and data with other vehicles on the road as well as third-party mobile/web-based applications and services.

The North American Connected Car Market is segmented by Technology Type (5G, 4G/LTE, 3G, and 2G), Application Type (Driver Assistance, Telematics, Infotainment, and Other Application Types), Connectivity Type (Integrated, Embedded, and Tethered), Vehicle Connectivity Type (V2Vehicle, V2Infrastructure, and V2Pedestrain), Vehicle Type (Passenger Cars and Commercial Vehicles), and Country (United States, Canada, and Mexico). The report offers the market size in value (USD billion) and forecasts for all the above segments.