Connected Car Market 2016
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Connected cars facilitate connectivity on wheels offering comfort, convenience, performance, safety and security combined with powerful network technology. This enables the driver to connect with online platforms and facilitates real-time communication on the go. Rising consumer demands, the need for constant connectivity, increased dependency on technology and the growing number of tech savvy people account for the growth of this market. Over time, various connectivity solutions have been developed by the car manufacturers and service providers such as the Machine-to-Machine (M2M) connectivity platform. This M2M feature in a car enables interconnectivity between two connected cars. Numerous sensors and processors located in the car provide accurate and real-time information to the driver.
The connected car market is expected to generate a revenue of $141 Billion by 2020. Advanced infotainment systems and a fast connection to the wireless network are the two prominent features that potentially enhance the market growth. Technology agreements and collaborations are the key strategies adopted by the market players to enhance their market share. For instance, AT&T is working with automotive manufacturers to provide contextual voice controls, which would help to create a safer driving experience. TomTom has launched the online turn-by-turn navigation service for customers, making it feasible to connect over a network.
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Based on connectivity technology, the global connected car market is segmented into 2G, 3G and 4G/LTE. The 2G service used for providing connectivity will gradually fade out in the next few years, which would be replaced by LTE and 3G technology. Some of the prime reasons for this technological shift should be the rapidly changing telecommunication technology and the advent of faster & reliable communication networks.
On the basis of connectivity solutions, the connected car market is segmented into integrated, embedded and tethered solutions. In 2013, embedded connectivity solution lead the market with almost 40% of the global connected cars market share, followed by integrated and tethered connectivity. However, this scenario could change in 2020, as integrated solutions are expected to occupy approximately 45% of the market share. The reason for this drastic change can be attributed to the consumer’s freedom of choice in customizing their connectivity devices and data plans.
Navigation, telematics and infotainment are the major applications of connected cars market. Based on the analysis, navigation should be the fastest growing market during the forecast period. This growth trend observed in the navigation segment is majorly due to the large scale adoption of this service into the connected cars.
On the basis of products and services, the market is segmented into sensors, processors, fleet manager, OEM services, aftermarket services and wireless and cellular modules. Amongst all the product and services, fleet manager was the largest revenue-generating segment in 2013. Due to its wide scale application across diverse industries, fleet manager service, is expected to lead the products and services market segment during the forecast period.
Geographically, the market is segmented into, North America, Europe, Asia Pacific and LAMEA. The Asia-Pacific region indicated a prominent growth and will go on to grow at a CAGR of 35.9% over the forecast period. In the years to come, Asia-Pacific should be a prominent automobile market, owing to the rapidly growing population, rising disposal incomes and a large presence of youth. This in turn should indirectly boost the market for connected cars.
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KEY MARKET SEGMENTS
Global Connected Cars Market by Technology
Global Connected Cars Market by Connectivity Solutions
Global Connected Cars Market by Products & Services
Global Connected Cars Market by Applications
Global Connected Cars Market by Geography
Table Of Contents – Major Key Points
CHAPTER 3 MARKET OVERVIEW
3.1 Market Definition and Scope
3.2 Key findings
3.2.1 Top Factors Impacting Connected Car’s Market
3.2.2 Top winning strategies in the Connected cars market
184.108.40.206 Partnership and collaboration:
220.127.116.11 Product launch:
3.2.3 Top investment pockets
3.3 Porter’s five force analysis
3.3.1 Bargaining power of supplier
3.3.2 Bbargaining power of buyer
3.3.3 Threat of substitution
3.3.4 Threat of new entrant
3.3.5 Competitive rivalry
3.4 Value chain analysis
3.4.1 OEM & Utility manufacturers
3.4.2 Vehicle manufacturers & dealers/distributors
3.4.3 Network, connectivity device and application providers
3.5 Market share analysis, 2013
3.6 Case studies
3.7 Market Dynamics
18.104.22.168 24*7 connectivity solution
22.214.171.124 Vehicle diagnostics and maintenance
126.96.36.199 Superior driving experience
188.8.131.52 Alert systems
184.108.40.206 Safety & security
220.127.116.11 Multiple Connectivity solution type
18.104.22.168 Additional expenditure
22.214.171.124 Non availability of uninterrupted & seamless connectivity
126.96.36.199 Lack of awareness
188.8.131.52 Intelligent transportation system
184.108.40.206 Data analysis
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