The globally Connected Car Market is projected to reach $57.6 billion by 2026, from an estimated $24.0 billion in 2021, at a CAGR of 19.1% from 2021 to 2026.
The roll-out of various government regulations regarding mandating safety features such as e-call, navigation, collision warning systems, etc., is expected to boost the adoption of connected car services globally. The increasing sales of premium and luxury vehicles are also driving the popularity of connected car services. Continuous ongoing developments in connected car software and hardware will drive the growth of the connecting car market.
For instance, in November 2021, Continental developed a technology solution for highly automated driving: an intelligent software that enables complex driving manoeuvres autonomously. The Next Generation Driving Planner is an innovative software solution that enables highly automated driving from Level 3. This means that vehicles can master certain driving tasks independently and without driver intervention. The software developed by Continental represents a significant leap forward in driving intelligence.
OPPORTUNITIES: Emergence of various technologies such as 5G and AI
The enhanced user experience for all connected cars depends on wireless connectivity. Many telecom industry players are developing 5G to increase the safety and efficiency of connected cars. According to the international 5G automotive associations, 68% of accidents can be avoided with the upcoming 5G technology. For instance, the EU and South Korea have signed a deal to work together on 5G development, while both have promised USD 782 million and USD 1.5 billion, respectively, in funding for local 5G projects. In the UK, USD 78 million of funding has been commissioned for a 5G research facility, known as the 5G Innovation Centre (5GIC). With the increasing use of sensors and other technologies that collect data, AI will be key to making sense of everything. Some automobiles already use AI for Level 3 autonomous driving, but for the industry to reach Level 5, major enhancements need to be made to the cars as well as the infrastructure.
Key Players:
Continental (Germany), Bosch (Germany), HARMAN (US), Airbiquity (US), and Visteon (US), Cloudmade (UK), Intellias (Ukraine), Tesla (US), Ford Motor Company (US), Audi (Germany), AT&T (US), Qualcomm (US), Verizon Communications (US), TomTom (Netherlands), Sierra Wireless (Canada).
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The cellular network is expected to change the landscape for connected car technology. With the introduction of 5G network globally, the connected car market is expected to get a boost significantly. the implementation of a 5G-based telecommunication infrastructure can lead to a reduction in data transfer time and operating costs. Connected cars with V2I communication have radar sensors that collect data at 45 TB per hour. Connected cars transfer this data to servers and provide real-time information to assist drivers in making instant decisions. This is possible in 5G networks only, thereby reducing latency and increasing the reliability of connected cars. Thus, the development and availability of 5G are expected to further drive the demand for connected car services.
The ECU plays a vital role in the connected car system and helps control different electronic systems of connected cars. The data generated through the hardware components are integrated into the ECU and transmitted to the cloud platform. Due to an increase in the number of electronics systems, the number of ECUs has increased, thereby adding to the complexity of vehicles. Hence, to reduce this complexity, companies have started to consolidate many ECUs and focus on their R&D efforts to develop and standardize ECUs with a higher capacity range.
Aftermarket connected car services are expected to become the largest connected car market segment in terms of revenue generation. OEMs offer many services, such as remote diagnostics, navigation, multimedia streaming, and on-road assistance, as a monthly subscription that the customer could renew as per need. Due to an increase in demand for safety and comfort features in cars, the demand for these services in the aftermarket is expected to increase during the forecast period.
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Recent Developments:
1. In November 2021, Continental developed a technology solution for highly automated driving: an intelligent software that enables complex driving manoeuvres autonomously. The Next Generation Driving Planner is an innovative software solution that enables highly automated driving from Level 3. This means that vehicles can master certain driving tasks independently and without driver intervention. The software developed by Continental represents a significant leap forward in driving intelligence.
2. In January 2021, HARMAN announced HARMAN Turbo Connect (TBOT), a new intelligent software agent that anticipates and mitigates vehicle connectivity discrepancies on the road. The newest solution in HARMAN’s telematics portfolio, HARMAN TBOT satisfies the current demand for high-speed connectivity with low latency, especially when used alongside 5G-enabled technologies like HARMAN’s Smart Conformal Antenna and full 5G and 5G-ready Telecommunications Control Units (TCU).
3. In June 2020, Bosch announced the launch of its new MEMS sensor, the SMI230, which ensures trouble-free navigation and helps realistically visualize vehicle movements. Production of the SMI230 at Bosch has recently started; the first customers are already getting the sensor as standard.
4. In September 2020, Visteon Corporation introduced an all-new digital cluster for the 2021 Ford F-150. Leaving the traditional gauge design behind and establishing bold interface enhancements with cutting-edge HMI, Visteon’s solution refreshes the model’s cockpit with a contemporary shape – integrating high-resolution graphics that deliver realistic drive modes for a wide range of roads, environments, and weather conditions.
5. In October 2020, Airbiquity launched its OTAmatic Vehicle Configurator, a tool for defining and managing connected vehicle software. The OTAmatic Vehicle Configurator gives automakers insight into the exact hardware and software configurations within a vehicle, manages known combinations of electronic control units (ECUs) and software versions in vehicles, and meets emerging government compliance requirements for type-certified vehicle systems.
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