The Connected Car Devices Market size was estimated at USD 28 billion in 2023 and is projected to reach USD 75 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.50% during the forecast period (2024-2030).

Connected Car Devices Market

Market Summary

The connected car devices market represents a transformative segment within the automotive and transportation industry, focusing on the integration of advanced telematics and communication technologies into vehicles. These devices enable vehicles to communicate with other vehicles, infrastructure, and external networks, facilitating a wide range of functionalities from real-time navigation and diagnostics to enhanced safety and infotainment services. The proliferation of IoT technology and the increasing consumer demand for smarter, safer, and more efficient driving experiences are central to this market's expansion. Automotive manufacturers, technology firms, and aftermarket suppliers are heavily investing in developing sophisticated systems that collect and utilize vehicle data. This ecosystem supports not only individual consumer needs but also offers significant value to fleet operators and urban planners aiming to improve logistics and traffic management. The market is characterized by rapid innovation, with a strong emphasis on developing solutions that cater to evolving regulatory standards and consumer expectations for connectivity and automation.

Key Highlights

Key highlights of the connected car devices market include the critical role of embedded, tethered, and integrated systems in delivering seamless connectivity. Embedded systems are factory-installed and offer robust, independent connectivity, while tethered systems utilize a driver's smartphone for internet access. The market is witnessing a significant shift towards Vehicle-to-Everything (V2X) communication, which is foundational for the development of autonomous driving technologies. Major technology trends include the integration of artificial intelligence and machine learning for predictive maintenance and personalized user experiences. Furthermore, the emphasis on cybersecurity has become paramount, with companies developing advanced protocols to protect vehicle data from unauthorized access and cyber threats. The competitive landscape is intense, with established automotive OEMs partnering with leading tech companies and specialized telematics providers to accelerate innovation and capture market share in this high-growth sector.

Drivers, Opportunities & Restraints

The primary drivers propelling the connected car devices market are the escalating consumer demand for enhanced in-vehicle experiences, including infotainment, real-time traffic updates, and remote vehicle management. Government regulations mandating safety features such as automatic crash notification and emergency call systems (eCall) are also significant catalysts, pushing automotive manufacturers to integrate these technologies as standard. The growing adoption of fleet management solutions by logistics and transportation companies to optimize routes, monitor driver behavior, and reduce operational costs further fuels market growth. Key opportunities lie in the expansion of 5G networks, which promise ultra-low latency and high-speed data transfer, enabling more advanced applications like autonomous driving and enhanced V2X communication. However, the market faces restraints including high costs associated with advanced connected car systems, which can limit adoption in price-sensitive segments. Data privacy and security concerns present substantial challenges, as the increased connectivity expands the potential attack surface for cyber threats, requiring continuous investment in security solutions.

Concentration Insights

The connected car devices market exhibits a concentrated competitive landscape in certain regions and technology segments, while being more fragmented in others. North America and Europe are established hubs of innovation and adoption, home to many leading automotive OEMs and technology providers such as Bosch, Continental, Harman International, and Verizon Connect. These regions benefit from strong regulatory support, advanced infrastructure, and high consumer purchasing power. The Asia-Pacific region is emerging as a highly dynamic and rapidly growing market, driven by massive automotive production in countries like China, Japan, and South Korea, and increasing investments in smart city initiatives. The aftermarket segment is relatively fragmented, with numerous players offering dongles and dongle-like devices that provide connectivity to older vehicles. This concentration of expertise and manufacturing capabilities in specific geographic areas influences global supply chains and strategic partnerships, with companies often establishing a presence in these key regions to access talent and market opportunities.

Type Insights

Connected car devices are primarily categorized into embedded, tethered, and integrated systems. Embedded systems are built directly into the vehicle during manufacturing, featuring their own cellular connection and antenna. They offer the most reliable and comprehensive connectivity, independent of any external devices, and are typically found in newer vehicle models from premium and mainstream OEMs. Tethered systems, on the other hand, rely on a driver's smartphone to provide connectivity to the vehicle's infotainment system via USB or Bluetooth, mirroring applications and data. Integrated systems represent a hybrid approach, combining elements of both embedded and tethered solutions to offer a flexible user experience. The choice between these types depends on factors such as cost, desired functionality, and vehicle age. The market is also seeing growth in aftermarket devices, such as dongles that plug into a vehicle's OBD-II port, which allow older cars to gain connected features like diagnostics and tracking without a full factory integration.

Application Insights

The applications for connected car devices are vast and segmented primarily into navigation, telematics, infotainment, and driver assistance. Navigation systems have evolved from static maps to dynamic, real-time services that provide traffic alerts, predictive routing, and points-of-interest information. Telematics applications are crucial for fleet management, offering functionalities like vehicle tracking, fuel management, and driver performance monitoring, which help businesses optimize their operations. Infotainment systems deliver audio and video content, internet browsing, and smartphone integration, significantly enhancing the passenger experience. Driver assistance and safety applications include features like automatic collision notification, roadside assistance, stolen vehicle tracking, and advanced driver-assistance systems (ADAS) that rely on continuous data exchange. Furthermore, these devices are enabling usage-based insurance (UBI) models, where premiums are calculated based on actual driving data collected from the vehicle.

Regional Insights

Regionally, the adoption and development of connected car technologies vary significantly. North America is a forefront market, characterized by high consumer acceptance, strong presence of key technology players, and supportive regulations for safety and emissions. The United States, in particular, is a major hub for telematics and fleet management solutions. Europe follows closely, with stringent government mandates like the eCall regulation driving the integration of connectivity in new vehicles. Countries like Germany, the UK, and France are central to automotive innovation in this region. The Asia-Pacific region is anticipated to witness the fastest growth, fueled by expanding automotive production, rising disposable incomes, and government initiatives promoting smart transportation and electric vehicles in China, Japan, and India. Other regions, including Latin America and the Middle East and Africa, are at earlier stages of adoption, with growth potential linked to economic development and infrastructure modernization.

Company Insights

The competitive landscape of the connected car devices market features a mix of established automotive suppliers, technology giants, and specialized telematics firms. Prominent players include Robert Bosch GmbH, which provides a wide range of automotive technology including connectivity solutions; Continental AG, known for its advanced telematics control units and integrated systems; and Harman International, a subsidiary of Samsung, specializing in connected car and infotainment systems. Verizon Connect and Geotab are key players in the telematics and fleet management software space. Technology companies like Google, with its Android Automotive OS, and Apple, with CarPlay, are also influential in shaping the infotainment ecosystem. These companies compete on the basis of technology innovation, system reliability, security features, and the ability to form strategic partnerships with automotive OEMs to have their solutions pre-installed in new vehicles.

Recent Developments

The connected car devices market is evolving rapidly with recent developments focused on enhancing functionality, security, and integration. A significant trend is the industry-wide push towards software-defined vehicles, where features and performance can be updated remotely via over-the-air (OTA) updates, reducing the need for physical recalls. Partnerships and collaborations have intensified, such as those between automakers and cloud service providers to enhance data processing capabilities for autonomous driving applications. There is a growing emphasis on developing more sophisticated cybersecurity solutions to protect connected vehicles from hacking attempts, with companies investing in hardware-based security modules and intrusion detection systems. Furthermore, the integration of connected car data with smart city infrastructure is gaining traction, aiming to improve traffic flow and reduce urban congestion. The development of 5G-enabled telematics control units is also a key recent advancement, paving the way for faster and more reliable vehicle-to-everything communication.

Report Segmentation

This comprehensive report on the connected car devices market is segmented to provide a detailed and structured analysis of the industry. The segmentation is based on several key criteria to cater to the specific information needs of various stakeholders. The market is broken down by device type, distinguishing between embedded, tethered, and integrated systems, as well as aftermarket solutions. It is further segmented by application, covering critical areas such as navigation, telematics, infotainment, and driver assistance. The report also provides a detailed regional analysis, covering key geographies including North America, Europe, Asia-Pacific, and the Rest of the World, with further breakdowns by major countries within these regions. This multi-dimensional segmentation allows for a thorough examination of market size, growth trends, and competitive dynamics within each specific segment, providing valuable insights for strategic planning and investment decisions.

FAQs

What are connected car devices? Connected car devices are hardware and software systems integrated into vehicles to enable communication with other devices, networks, and services outside the car. These devices facilitate features like real-time GPS navigation, vehicle diagnostics, emergency services, internet access, and infotainment, transforming the driving experience.

How does a connected car work? A connected car works by using a combination of embedded modems, sensors, and GPS technology to transmit and receive data. This data is sent via cellular networks, satellite, or WiFi to cloud-based platforms where it is processed. The results are then relayed back to the vehicle or to a user's smartphone app, enabling functionalities like remote control, live traffic updates, and predictive maintenance alerts.

What is the difference between V2V and V2I communication? V2V, or Vehicle-to-Vehicle communication, involves the wireless exchange of data between nearby vehicles about their speed, position, and direction to prevent accidents. V2I, or Vehicle-to-Infrastructure communication, is the exchange of data between a vehicle and roadside infrastructure, such as traffic lights or road signs, to improve traffic efficiency and provide hazard warnings.

What are the benefits of connected cars? The benefits of connected cars are extensive, including enhanced safety through collision avoidance systems and emergency response, improved traffic management and reduced congestion, greater convenience with features like remote start and lock, and personalized infotainment options. For businesses, they enable efficient fleet management and new service-based revenue models.

Are connected cars secure? While connected cars offer numerous advantages, they also introduce cybersecurity risks. Manufacturers are continuously addressing these concerns by implementing advanced security protocols, encryption methods, and regular over-the-air software updates to protect vehicles from unauthorized access and cyber-attacks, making security a top priority in the development process.

Who are the key players in the connected car market? The key players in the connected car market include a diverse range of companies from the automotive and technology sectors. Leading automotive suppliers like Bosch, Continental, and Denso are major contributors. Technology firms such as Google, Apple, and Qualcomm play a significant role in providing operating systems and chipsets. Specialized telematics providers like Verizon Connect and Geotab are also crucial players in this ecosystem.

Citius Research has developed a research report titled “Connected Car Devices Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” delivering key insights regarding business intelligence and providing concrete business strategies to clients in the form of a detailed syndicated report. The report details out the factors such as business environment, industry trend, growth opportunities, competition, pricing, global and regional market analysis, and other market related factors.

Details included in the report for the years 2024 through 2030

• Connected Car Devices Market Potential
• Segment-wise breakup
• Compounded annual growth rate (CAGR) for the next 6 years
• Key customers and their preferences
• Market share of major players and their competitive strength
• Existing competition in the market
• Price trend analysis
• Key trend analysis
• Market entry strategies
• Market opportunity insights

The report focuses on the drivers, restraints, opportunities, and challenges in the market based on various factors geographically. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report. The Connected Car Devices Market report is segmented on the basis of various market segments and their analysis, both in terms of value and volume, for each region for the period under consideration.

Connected Car Devices Market Segmentation

Regions Covered

• North America
• Latin America
• Europe
• MENA
• Asia Pacific
• Sub-Saharan Africa and
• Australasia

Connected Car Devices Market Analysis

The report covers below mentioned analysis, but is not limited to:

• Overview of Connected Car Devices Market
• Research Methodology
• Executive Summary
• Market Dynamics of Connected Car Devices Market
  • Driving Factors
  • Restraints
  • Opportunities
• Global Market Status and Forecast by Segment A
• Global Market Status and Forecast by Segment B
• Global Market Status and Forecast by Segment C
• Global Market Status and Forecast by Regions
• Upstream and Downstream Market Analysis of Connected Car Devices Market
• Cost and Gross Margin Analysis of Connected Car Devices Market
• Connected Car Devices Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030
  • Competition Landscape
  • Market Share of Major Players
• Key Recommendations

The “Connected Car Devices Market Report - Global Industry Analysis, Size, Share, Growth Trends, Regional Outlook, Competitive Strategies and Segment Forecasts 2024 - 2030” report helps the clients to take business decisions and to understand strategies of major players in the industry. The report delivers the market driven results supported by a mix of primary and secondary research. The report provides the results triangulated through authentic sources and upon conducting thorough primary interviews with the industry experts. The report includes the results on the areas where the client can focus and create point of parity and develop a competitive edge, based on real-time data results.

Connected Car Devices Market Key Stakeholders

Below are the key stakeholders for the Connected Car Devices Market:

• Manufacturers
• Distributors/Traders/Wholesalers
• Material/Component Manufacturers
• Industry Associations
• Downstream vendors

Connected Car Devices Market Report Scope

COVID-19 Impact Analysis

Like most other markets, the outbreak of COVID-19 had an unfavorable impact on the Connected Car Devices Market worldwide. This report discusses in detail the disruptions experienced by the market, the impact on flow of raw materials, manufacturing operations, production trends, consumer demand and the projected future of this market post pandemic.

The report has helped our clients:

• To describe and forecast the Connected Car Devices Market size, on the basis of various segmentations and geography, in terms of value and volume
• To measure the changing needs of customers/industries
• To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
• To gain competitive intelligence and uncover new opportunities
• To analyse opportunities in the market for stakeholders by identifying high-growth segments in Connected Car Devices Market
• To strategically profile key players and provide details of the current competitive landscape
• To analyse strategic approaches adopted by players in the market, such as product launches and developments, acquisitions, collaborations, contracts, expansions, and partnerships

Report Customization

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