Connected Vehicle Market Research Report Information By Offering (Hardware, Software, and Services), Communication Type (Vehicle to Network (V2N), Vehicle to Infrastructure (V2I), Vehicle to Vehicle (V2V), Vehicle to Cloud (V2C), Vehicle to Pedestrian (V2P), Vehicle to Device (V2D), and Vehicle to Grid (V2G)), By Connectivity (DSRC, Cellular, Satellite, and Wi-Fi), By Vehicle Type (Passenger Cars, and Commercial Vehicles), By Propulsion (ICE Vehicle, and Electric Vehicle (EV)), By End Use (OEM and Aftermarket) And By Region (North America,

Global Connected Vehicle Market Overview

Connected Vehicle Market Size was valued at USD 63,201.2 Million in 2022. The Connected Vehicle market industry is projected to grow from USD 71,610.5 Million in 2023 to USD 335,980.1 Million by 2035, exhibiting a compound annual growth rate (CAGR) of 13.7% during the forecast period (2023 – 2035). Connected Vehicle (CV) is a vehicle that is equipped with a variety of sensors and communication technologies that allow it to communicate with other vehicles, infrastructure, and pedestrians. This communication can be used to improve safety, efficiency, and convenience for all road users.

Figure1: Connected Vehicle Market, 2020 - 2035 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Connected Vehicle Market Driver

• 
  

  Increased Demand for Enhanced User Comfort, Safety, and Convenience

  
  

Growing consumer desire for more comfort, convenience, and safety is a major element propelling the market's revenue expansion. Any linked car has built-in microprocessor or SIM card internet access. Because the wireless network coverage is consistent, it can access the internet with ease. With linked car technologies, people can connect to a variety of pre-loaded entertainment services and applications. Additionally, by linking smartphones to the infotainment system of the car via the app, people may browse movies, listen to music, and listen to Internet radio while the car is parked and control every aspect of entertainment remotely. Enhanced security is yet another important benefit of linked car technology. Roadside assistance, SOS in the event of an accident, and real-time location sharing and monitoring are all available to individuals. The market's revenue growth is being driven primarily by these factors. For example, on November 30, 2022, Next.e.GO Mobile SE, a German producer of urban electric vehicles, and Sibros, a developer of connected vehicle platforms, inked a strategic partnership to include connected mobility solutions into Next.e.GO Mobile SE's new cars. In order to improve the customer experience, Next.e.GO selected Sibros' Deep Connected Platform for vehicle-wide data management and over-the-air (OTA) software updates. 

A multitude of linked and value-added fleet services are made possible by data collection, and over-the-air (OTA) software upgrades enable all vehicles to adjust and enhance the customer experience over the course of their lifetime.Modern aftermarket technology, such as connected car safety services, is a good example of how data exchange between vehicles and people can be achieved. In order to boost vehicle efficiency, save fuel and maintenance costs, enhance security and safety features, and enhance drivers' entire driving experience, telecommunication and automotive technologies are merged in safety. The driver assistance system, which helps the driver choose the optimal route to reach their destination, is another feature of connected cars. It also provides information on traffic congestion and parking space availability. All of these linked car features provide intelligent transportation systems that improve driving in general.

During the anticipated period, the growing need for enhanced vehicle safety to reduce traffic accidents is anticipated to support market expansion. A million or more people are injured and 1.3 million people die in traffic accidents each year, according to UN statistics. In this case, linked vehicle technology relays information to the driver about the number of people or two-wheelers ahead of the vehicle by connecting the vehicle with surrounding digital equipment. Additionally, as people become more dependent on technology, they buy cars with connectivity features, like those that let them safely accept phone calls while driving or listen to music streaming apps or audiobooks. By rerouting approaching cars away from areas with heavy traffic, this technology is also anticipated to help reduce delays and traffic congestion. It is anticipated that these factors will support market growth in the upcoming years.

Connected Vehicle Market Offering Segment Insights

Connected Vehicle Offering Insights

Based on offering, the Connected Vehicle Market has been segmented into Hardware, Software, and Services. The Hardware segment held the majority share in 2022, contributing around ~ 36.5% to the market revenue. Connected vehicles utilize various hardware components to enable connectivity and data exchange between the vehicle and external entities. Sensors, controllers, and electronic control units are vital in gathering real-time data from within the vehicle. Hardware such as telematics devices, embedded modems, and wireless communication modules allow the vehicle to connect to the internet and mobile networks. This connectivity hardware facilitates over-the-air software updates and upgrades.

Advancements in connectivity hardware, particularly integrating newer wireless technologies, are significant drivers for the connected vehicles market. The transition to 5G networks will allow vehicles to transmit and receive higher critical safety and performance data volumes at higher speeds. 5G and other high-speed connectivity solutions are expected to support more advanced applications around autonomous driving, remote diagnostics, predictive maintenance, and infotainment. This, in turn, is creating opportunities for hardware manufacturers and automakers to develop innovative 5G-enabled connected vehicle systems.

Figure2: Connected Vehicle Market, by Ofering, 2022 & 2035 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Connected Vehicle Market Communication Segment Insights

Connected Vehicle Communication Insights

Based on Communication, the Connected Vehicle Market has been segmented into Vehicle to Network (V2N), Vehicle to Infrastructure (V2I), Vehicle to Vehicle (V2V), Vehicle to Cloud (V2C), Vehicle to Pedestrian (V2P), Vehicle to Device (V2D), Vehicle to Grid (V2G). The Vehicle to Vehicle (V2V) segment held the majority share in 2022 contributing around ~40.1% to the market revenue. Vehicle-to-vehicle (V2V) communication allows vehicles to directly share information using dedicated short-range communications (DSRC) technology. Through V2V, vehicles broadcast their location, speed, direction, and other data multiple times per second. Nearby vehicles equipped with V2V technology can receive this information, even using it to provide drivers with forward collision and lane change warnings. 

V2V improves road safety significantly by enabling vehicles to 'see' around corners and beyond line-of-sight through wireless information exchange. It also optimizes traffic flow by allowing vehicles to navigate congested areas cooperatively based on a common operating picture. As a result, V2V is a major driving factor in the growth of the vehicle-to-everything (V2X) market, which involves all types of communication between vehicles, infrastructure, and other road users. Automakers are investing heavily in V2V to integrate these connectivity capabilities into new vehicle models while governments work to mandate V2V technology for its safety benefits.

Connected Vehicle Market Connectivity Segment Insights

Connected Vehicle Connectivity Insights

Based on Connectivity, the Connected Vehicle Market has been segmented into Dedicated Short Range Communication (DSRC), Cellular, Satellite, Wi-Fi. The Cellular segment held the majority share in 2022 contributing around ~39.6% to the market revenue. The emerging C-V2X technology allows vehicles to communicate directly with each other and road infrastructure using cellular networks. Using 5G cellular, C-V2X enables vehicles to receive real-time safety alerts regarding road conditions and obstacles. This helps prevent accidents by providing early warnings of hard braking, traffic jams, and other hazardous situations ahead. Automakers like GM, Ford, and Volkswagen have been testing C-V2X, which can transmit safety messages between vehicles much faster than previous car-to-car methods. Regulators expect C-V2X to improve traffic flow and road safety significantly.

Connected Vehicle Market Vehicle Type Segment Insights

Connected Vehicle, Vehicle Type Insights

Based on Vehicle Type, the Connected Vehicle Market has been segmented into Passenger Cars and Commercial Vehicles. The Passenger Cars segment held the majority share in 2022 contributing around ~74.4% to the market revenue. Passenger cars in connected vehicle market refer to automobiles that are equipped with advanced connectivity technologies. These technologies enable vehicles to communicate with each other, with infrastructure systems, and with other devices, providing numerous benefits to drivers and passengers. Connected cars enable features such as real-time navigation, remote diagnostics, advanced safety systems, entertainment options, and improved fuel efficiency. The market drivers impacting the connected vehicle market for passenger cars are manifold. Firstly, the growing demand for enhanced safety features drives the adoption of connected cars. Features such as automatic emergency braking, blind spot detection, and lane-keeping assist, enabled through connectivity, enhance the overall safety of the vehicle and its occupants.

Connected Vehicle Market Propulsion Segment Insights

Connected Vehicle Propulsion Insights

Based on Vehicle Propulsion, the Connected Vehicle Market has been segmented into ICE, Electric. The ICE Vehicle segment held the majority share in 2022 contributing around ~76.9% to the market revenue. Internal combustion engines (ICE) refer to vehicles that use gasoline or diesel engines for propulsion. ICE vehicles play an essential role as many automakers are still developing and producing gasoline-powered vehicles. ICE vehicles can communicate with other vehicles, infrastructure, and the cloud through V2X technology to access safety, mobility, and environmental applications. V2X connectivity in ICE vehicles helps provide drivers with real-time traffic information, hazard warnings, automated driving assistance features, and optimized traffic signal timing to reduce emissions and congestion. As more electric vehicles are adopted, the ICE vehicle segment will gradually decline in the coming years.

Connected Vehicle Market End Use Segment Insights

Connected Vehicle End Use Insights

Based on End Use, the Connected Vehicle Market has been segmented into OEM and Aftermarket. The OEM Vehicle segment held the majority share in 2022 contributing around ~80.6% to the market revenue. Original Equipment Manufacturers (OEMs) in the connected vehicle market refers to companies that manufacture vehicles and their components, such as sensors, processors, and connectivity modules, enabling vehicles to connect to the internet and exchange data. These data exchanges facilitate various services and functionalities, including navigation, remote monitoring, diagnostics, and over-the-air updates. OEMs play a crucial role in the connected vehicle market as they integrate the necessary technologies into vehicles during manufacturing. They collaborate with technology providers to ensure seamless connectivity, robust security, and compatibility with various networks and software systems.

Connected Vehicle Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, Asia Pacific held the largest share of 47.0% in the Connected Vehicle market in 2022 and is expected to maintain its dominance during the forecast period. Asia Pacific is estimated to be the connected vehicle market because of the Asia-Pacific Connected Vehicle Market encompasses vehicles equipped with advanced communication technologies to enhance connectivity and functionality. This market is experiencing substantial growth driven by factors such as the rise in urbanization, increasing disposable incomes, and advancements in wireless communication technologies. The strengths of the Asia-Pacific Connected Vehicle Market can be seen in the enhanced road safety features it offers, including collision avoidance systems, real-time traffic updates, and integration with emergency services. Furthermore, connected vehicles enhance the driving experience by providing entertainment, navigation, and seamless connectivity to smart devices.

Further progress in artificial intelligence, 5G networks, and autonomous driving technologies can significantly enhance the capabilities and adoption of connected vehicles. Additionally, the increasing demand for electric vehicles in the region presents an opportunity to integrate connected features with eco-friendly mobility solutions. In conclusion, the Asia-Pacific Connected Vehicle Market demonstrates strengths in road safety and improved driving experience. However, it is essential to address data privacy and cybersecurity weaknesses. Embracing technological innovation and sustainable transportation opportunities will be vital for the market's continued growth.

Figure3: Connected Vehicle Market Size By Region 2022 & 2035

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, South Korea, and Indonesia.

The Europe Connected Vehicle Market encompasses vehicles equipped with advanced communication systems that facilitate connectivity and data exchange between vehicles, infrastructure, and other devices. This emerging market is propelled by technological advancements, growing demand for safety and convenience features, and government initiatives promoting intelligent transportation systems. The Europe Connected Vehicle Market's advantages include enhanced road safety through real-time traffic updates, emergency call systems, and collision warnings. Additionally, it offers improved convenience features such as navigation, entertainment, and remote vehicle management. Moreover, these connected vehicles enable valuable data collection for traffic management, optimized route planning, and emissions reduction. However, there are also drawbacks to consider. Data privacy and cybersecurity concerns pose potential risks as connected vehicles become more susceptible to hacking and unauthorized access.

Furthermore, the high initial cost of connected vehicles and the requirement for robust network infrastructure can hinder widespread adoption. There are promising opportunities in integrating connected vehicles with emerging technologies like 5G, artificial intelligence, and cloud computing. This integration can expand the capabilities of connected vehicles, enabling advanced features like autonomous driving, vehicle-to-infrastructure communication, and infotainment systems based on virtual reality. In conclusion, the Europe Connected Vehicle Market offers significant safety, convenience, and data collection advantages. Nonetheless, cybersecurity, cost, and infrastructure challenges need to be effectively addressed. Leveraging emerging technologies presents exciting opportunities for innovation and further growth within this market.

The North America Connected Vehicle Market incorporates advanced technologies, like internet connectivity and communication systems, into vehicles in the North American region. These technologies facilitate smooth communication between vehicles, infrastructure, and users, offering many advantages. One benefit of the North America Connected Vehicle Market is its ability to enhance road safety through features such as collision warning systems, blind-spot detection, and automated emergency response, reducing accidents and saving lives. Additionally, connected vehicles can improve traffic management, optimize route planning, and minimize congestion, thus leading to increased efficiency and decreased carbon emissions. Nevertheless, a drawback of this market is its dependency on internet connectivity, which may expose vulnerabilities in terms of cybersecurity. As connectivity increases, the risk of unauthorized access and data breaches also rises. Another challenge lies in integrating legacy vehicles into the connected ecosystem, as older models may require retrofitting or upgrading to enable connectivity. The primary opportunity in the North America Connected Vehicle Market lies in the potential for innovation and the development of new business models. This includes the advancement of smart mobility solutions, autonomous driving, and the expansion of connected services. Collaboration among automakers, technology companies, and infrastructure providers can lead to the emergence of new products and services, improved user experiences, and increased customer satisfaction. Overall, the North America Connected Vehicle Market has the potential to revolutionize transportation, enhance road safety, and foster innovation. However, addressing cybersecurity concerns and ensuring seamless integration across different vehicle generations will be critical for its sustained growth and success.

Connected Vehicle Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Connected Vehicle market is highly competitive and dominated by established, pure-play vendors. Over 10 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Connected Vehicle market is highly competitive, with many vendors offering similar products and services.

The major players in the market Harman International, Denso Corporation, Robert Bosch GmbH, Aisin Corporation, Continental AG, Qualcomm Technologies, Inc, ZF Friedrichshafen AG, Visteon Corporation, Valeo, Intellias, AT&T Intellectual Property, Verizon Communications Inc., TomTom International BV, Voxelmaps, Broadcom. The Connected Vehicle market is distinguished by the presence of numerous Connected Vehicle and local players catering to the sachet packaging techniques that are evolving at a rapid pace. Furthermore, the increased demand for enhanced user comfort, safety, and convenience and Government regulations promoting connected car technologies in the end-use industry is further driving the growth of Connected Vehicle Market during the forecast period.

The Connected Vehicle Market is extremely competitive, with players competing, partnering, and investing heavily in research and development to gain a significant market share. The market is moderately fragmented with rising competition, increasing collaborative partnerships, and other strategic decisions to achieve operational efficiency.

Mergers and collaborations were also observed to expand the company's product portfolio, as well as introduce new products. The growth of prominent industry players is dependent on various factors, such as market conditions, government support, and industry development. Key manufacturers in the sachet packaging market are focusing on developing products with advanced technologies. It is also projected that a rise in the investments for R&D will also boost the market's growth in the upcoming future.

The Connected Vehicle Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Connected Vehicle market include

• Harman International


• Denso Corporation


• Robert Bosch GmbH


• Aisin Corporation


• Continental AG


• Qualcomm Technologies, Inc


• ZF Friedrichshafen AG


• Visteon Corporation


• Valeo


• Intellias


• AT&T Intellectual Property


• Verizon Communications Inc.


• TomTom International BV


• Voxelmaps


• Broadcom

Connected Vehicle Industry Developments

• In January 2023, HARMAN international entered into a partnership with Ferrari. This partnership will see HARMAN Upgrade hardware and software to bring completely upgradeable consumer electronics-level experiences swiftly and affordably into the cabin throughout their lineup of vehicles.


• In January 2023, Continental AG entered into a partnership with Ambarella. This partnership will see that, for assisted and automated driving (AD), on the way to autonomous mobility, the strategic partnership will incorporate Ambarella's energy-efficient System-on-Chip (SoC) family into Continental's Advanced Driver Assistance Systems (ADAS). Ambarella's "CV3-AD" chip family outperforms competing domain controller SoCs in terms of speed, processing sensor data more quickly and thoroughly for improved environmental perception and safer mobility.


• In June 2023, TomTom International announced a partnership with Flow Labs for any road, at any time. Flow Labs' AI applications will leverage TomTom's world-class traffic data to provide transportation providers with real-time optimization and insights.

Connected Vehicle Market Segmentation:

Connected Vehicle Offering Outlook

Hardware

• Head Unit


• Central Gateway (CGW)
  


• High-precision Precision Positioning


• GNSS Modules


• Inertial Measurement Units (IMUs)


• LiDAR (Light Detection and Ranging)
  


• On-Board Unit (OBU)


• Telematic Control Unit (TCU)


• Intelligent Antenna Modules


• Electronic Control Unit (ECU)


• Communication Modules


• Sensors and Actuators


• Others

Software

• Remote Diagnostics


• Infotainment


• Safety & Security


• Remote Operation


• Auto Parking/Connected Parking


• Auto Pilot


• Vehicle Management


• Asset Tracking


• Cybersecurity


• HD Map Generation

Connected Vehicle Communication Outlook

• Vehicle to Network (V2N)


• Vehicle to Infrastructure (V2I)


• Vehicle to Vehicle (V2V)


• Vehicle to Cloud (V2C)


• Vehicle to Pedestrian (V2P)


• Vehicle to Device (V2D)


• Vehicle to Grid (V2G)

Connected Vehicle Connectivity Outlook

• DSRC


• Cellular


• Satellite


• Wi-Fi

Connected Vehicle, Vehicle Type Outlook

• Passenger Cars


• Commercial Vehicles

Connected Vehicle Propulsion Outlook

• ICE Vehicle


• Electric Vehicle (EV)

Connected Vehicle End Use Outlook

• OEM


• Aftermarket

Connected Vehicle Regional Outlook

North America

• US


• Canada


• Mexico

Europe

• Germany


• France


• UK


• Spain


• Italy


• Rest of Europe

Asia-Pacific

• China


• India


• Japan


• South Korea


• Indonesia


• Rest of Asia-Pacific

Middle East & Africa

• South America