Global Connected Car Market Size, Trends, Forecast & Risks 2021-2026

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    GLOBAL CONNECTED CAR MARKET

    KEY FINDINGS

    1. Electric vehicles and autonomous cars are the future and a complete transition from ICE powered vehicles to pure EV, as well as human driven car to autonomous is impossible without connected cars
    2. Partnerships between OEMs ,suppliers and acquisition of tech start-ups by OEMs and tier-1 suppliers have become a common occurrence in connected car market
    3. In commercial vehicle segment, truck platooning can result in reduced accident rate and significant savings on fuel economy
    4. ADAS ,in-vehicle infotainment (IVI), as well as autonomous vehicles will depend on huge volume of data streamed internally within the vehicle and externally
    5. The automakers are opting for high speed ethernet switches as there are numerous computing applications that call for a strong and secure in-vehicle-network
    6. Despite major developments in technology, cybersecurity has remained a major challenge.
    7. A driver assistance system has been developed that consists of advanced technological features such as adaptive cruise control, 360 view camera, lane keep assist, park assist to enhance the safety features of the vehicle.
    8. The department of transport in the US has mandated all vehicles to be equipped with Vehicle-to-Everything (V2X) communications by the year 2023.
    9. The production globally was estimated to go from 90-95 Million units in 2020 to 110-115 Million units by 2025, the production in the automotive sector declined by 5.2% during the pandemic.
    10. The growth will boost with the increase in governmental efforts for the development of intelligent car telematics, increase in demand for features offered by smartphones and driving automated technologies with passenger safety.

     

     

     

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    GLOBAL CONNECTED CAR MARKET DYNAMICS

     

    SI No Timeline Company Developments
    1 November 2021 Global Logic Global Logic, Jungo and OpenEnergy have signed a partnership agreement in order to develop an automotive virtual driver monitoring system(DMS) solution.
    2 July 2021 Airbiquity Airbiquity has partnered with Cyngn in order to help material handling companies evolve vehicle fleets into autonomous systems.
    3 July 2021 Airbiquity Airbiquity has expanded its market which requires Grade Over-The-Air(OTA) software and Data Management Services.
    4 April 2021 Airbiquity Airbiquity and NXP have expanded technology collaboration to address automaker challenges with managing software and data for intelligent connected vehicles.
    5 February 2021 Airbiquity Airbiquity, Cloudera, NXP Semiconductors, Teraki and Wind River have been partnered to improve data management for connected and Autonomous Vehicles.  

     

     

    RECENT PARTNERSHIPS/AGREEMENTS IN CONNECTED CAR MARKET

     

    Sl no Timeline Region Companies Involved Aim
    1 June 2021 Germany LDRA – OpenSynergy To develop a defence strategy combined with hypervisor technology and secure coding to combat hacks in connected technology. 
    2 May 2021 Netherland Stellantis NV – Foxconn Subsidiary FIH Mobile to develop mobile drives for new in-cabin advanced telematics.
    3 Oct 2020 Japan Toyota Motor Corp – KDDI Corp Toyota to invest $500 million for the development of the mobile carrier based connected vehicle.
    4 May 2020 China Huawei – 18 Chinese automakers (First Automobile group, Dongfeng Motor Corporation, Chang’an Automobile, SAIC Motor Corporation, BYD Auto) To develop and establish 5G enabled ecosphere to accelerate commercialisation of 5G
    5 Jan 2020 US Volkswagen – Aeris Communication Ventic LLC – to develop connected vehicle technologies with 51% stake of Volkswagen.
    6 Jan 2020 US Audi – Verizon To deliver in-vehicle embedded Wi-Fi and advanced connections to all future Audi cars. 
    7 Nov 2019 US Nissan- SiriusXM Nissan and INFINITI vehicles will begin offering SiriusXM with 360L(delivers content via both satellite and streaming)
    8 Oct 2019 US Hyundai- Netradyne To utilize the road and driving behaviour data collected by Netradyne to support HD mapping and map updates for Hyundai L2+ autonomous vehicles
    9 Oct 2019 Europe Audi- Deutsche Telekom-City of Ingolstadt To build communication between different road users, automated driving and connections to the Internet of Things (IoT)
    10 Oct 2019 India KIA- Vodafone-Idea KIA to utilize Vodafone-IDEA e-sim for UVO connected car solution
    11 Aug 2019 Europe and Asia Cubic-Metaswitch Cubic’s connected car solution to support new technologies as 3G voice services are phased out

    ABOUT US CONNECTED CAR MARKET 

    1. Among top-selling Ford vehicles, like F-150,Escape, Fusion and Edge, 4G LTE Wi-fi with e-sim is offered on 90%( almost all trims). 8 inch screens can be widely found on almost all vehicles
    2. In Chevrolet, 4G LTE Wi-fi is surprisingly unavailable on the best-selling pickup Silverado, but it is almost standard on best-selling SUVs and sedans like Equinox,Traverse,Malibu and Colorado
    3. Toyota has 100% fitment of Wi-fi on best-selling vehicles like Tacoma, Camry,Corolla and RAV4, powered by Verizon. The lower trims have 7- inch touchscreen whereas the mid and higher trims have 8-inch screen as standard

     

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    ABOUT  EUROPE CONNECTED CAR MARKET 

    1. Top selling cars of Ford like Fiesta, Focus are provided with 4G LTE Services which is powered by FordPass App and providing Android auto and Apple car Play as standard except base trim
    2. Best-selling cars of Volkswagen like Golf, Polo, Tiguan, T-roc and Passat dont have 4G Wi-fi Services but has e-sim for Navigation and e-call purpose. 8-inch touchscreen is standard on many cars
    3. Top selling Skoda cars like Octavia, Fabia are provided with Android auto and Apple car Play and  8-inch touch screen display is standard on Octavia and 6.5 inch on Fabia.

     

     

    OEM DEVELOPMENTS IN EUROPE CONNECTED CAR MARKET

    Mercedes Benz : The OEM will now  test how safety on wintry roads  can be improved with car-to-X communication. It is working with Telefonica Deutschland and network supplier Ericsson, putting in place the 5G mobile network for automobile production in its “Factory 56” in Sindelfingen, Germany.

     

    BMW: The OEM has introduced ‘Remote Software Upgrade’ to ensure that the vehicle software in all BMW’s with Operating System 7.0 is updated at all times, just like a mobile phone.

     

    Audi : Audi introduced the vehicle-to-infrastructure (V2I) service “Traffic Light Information” to Europe. This feature  will allow Audi drivers to see in the cockpit what speed is required to reach the next traffic light on green.

     

    JLR: Jaguar Land Rover is testing connected car services that will enable drivers to earn cryptocurrency and make payments on the move. The technology is called ‘Smart Wallet’ . It selected Spirent solutions to develop and verify next-generation automotive Ethernet in-vehicle networking.

     

    SEAT: In March 2019, SEAT and Telefonica launched the ‘5G Connected Car’ pilot test in the framework of the 5G Barcelona project, which was aimed at promoting Barcelona as one of the benchmark European capitals of 5G technology

     

    VW: Volkswagen  annonced in Jan 2019 that it will deploy the OPTIGA Trusted Platform Module (TPM) 2.0 a security solution for the connected car from Infineon Technologies AG.

     

     

    SUPPLIER DEVELOPMENTS IN EUROPE CONNECTED CAR MARKET 

    Ficosa : The supplier received  European RED certification for its CarCom platform in June 2019.  It has developed solutions for connecting cars with infrastructures and with other vehicles through the available technologies: both with DSRC (802.11p) and (C-V2X) technology

     

    Continental: World`s fourth biggest automotive supplier by revenue has  developed an adaptive voice-activated digital assistant for vehicles. With the digital assistant the company focuses on the most natural means of communication: the spoken words.

     

    TomTom : In Sep 2019, TomTom announced  that it`s navigation has been integrated with Microsoft connected platform.

     

    Bosch : World`s biggest automotive supplier by revenue, Bosch  demonstrated a cloud-based wrong-way driver alert system that can protect human lives form danger of encountering a wrong-way driver on freeways

     

    Keysight Technologies : Entered into an alliance with Nordsys GmbH to combine the two companies’ cellular vehicle-to-everything (C-V2X) and testing competences.

     

     

    ABOUT  JAPAN CONNECTED CAR MARKET 

    • Toyota the leading car maker in Japan is providing its cars with Toyota Connect on  premium models  like Prius, Corolla, C-HR, and Crown. MPVs  like Alphard, Velfire and Esquire get it as option.
    • Toyota cars are provided with lot of options in Infotainment system like 7inch and 8 inches are preferred options and Apple car play is the only mobile interconnect service and cars like Prius, Corolla, C-HR, Crown get e-sim as Standard and other cars like Alphard, Velfire ,Esquire , Voxy get e-sim as option.
    • Car manufacturers in japan has given less preference to connected services and Infotainment system over safety and provided with safety features like Pre car safety (Collision avoidance support type with pedestrian detection function/ Millimeter wave radar + monocular camera system), Lane departure alert, Automatic high beam and ACC.

     

    CONNECTED CAR MARKET TRENDS

     

    SI No Timeline Company Trends
    1 November 2021 Panasonic Panasonic has developed a cyber security system for internet-connected cars for detecting abnormalities.
    2 September 2021 Nordsys Nordsys has developed a hybrid V2X Communication platform waveBEE plus 8 with triple connectivity for V2X applications.
    3 September 2021 General Motors General Motors has introduced the Ultifi, the end-to-end software platform designed to unlock new vehicle experiences and connect customers’ digital lives.
    4 September 2021 Stellantis Stellantis has tested its Multi-Access Edge Computing (MEC) and Safety Cloud technologies in North America in order to give drivers the advanced notifications and warnings of potential hazards in their path.
    5 July 2021 Cerence THe Cerence Inc and Harman have partnered to voice-enable third party applications which will be available in the Harman Ignite Store.
    6 January 2021 Harman Harman has introduced new connected audio innovations, the Live Interactive Virtual Experience(LIVE) and Personal Audio Headrest Platforms.
    7 December 2020 Tactile Mobility Tactile Mobility consists of an in-vehicle module residing on one of the vehicle’s computers and the cloud-based system.

     

    • As of July 2020, the UK has commissioned a funding of $78 million for the research of 5G facilities, named as the 5G innovation centre.
    • In February 2020, the company Ford India introduced a comprehensive connectivity system through mobile phones that allows owners to access their cars remotely, call in case of breakdown for assistance and perform these functions in India. 
    • In January 2020, Audi and Verizon business group partnered to deliver in-vehicle embedded Wi-Fi and advanced connections to all future Audi cars with Verizon’s 4G LTE network.
    • The Europe Union and South Korea have signed a contract to work together on the development of the 5G network, promising funds worth 4782 million and $1.5 billion respectively.
    • As of January 2020, Tata Motors has launched ZConnect application for its electric vehicle Nexon EV, the car now offers 35 connectivity features with advanced technology
    • The department of transport in the US has mandated all vehicles to be equipped with Vehicle-to-Everything (V2X) communications by the year 2023 to be sold in the country.
    • There are now advanced ADAS features mandatory in Europe and the US. Anti-lock braking system, Electronic stability control and autonomous emergency braking system has become mandatory for all commercial vehicles.
    • Highly accurate positioning has now become an important element of connected vehicle solutions to support Vehicle-to Everything (V2X) and other applications . For example, Nexar’s new AI-powered image retrieval algorithm claims to improve localization in cities(dense environment), solving a problem that has long plagued both rideshare operators and navigation apps
    • Vehicle to pedestrian detection is now an important topic of research. For example,Viziblezone( a provider of ‘vehicle-to-pedestrian’ (V2P) solution) announced that its prototype system can detect pedestrians even hidden behind objects at distances of up to 150 meters
    • Toyota in 2018 had announced that all its cars in US will have DSRC(Dedicated short range communication) for V-2-V communication from 2021. But earlier in 2019, it suspended the connected car program due to lack of “industry commitment”. Lack of enthusiasm from OEMs could become a dangerous trend in coming years

     

    COVID-19 IMPACT ON CONNECTED CAR MARKET

    Due to the COVID-19 pandemic, the production across the entire automotive manufacturing industry declined. The key players such as BMW, Volkswagen, General Motors deferred their production plans due to the lockdowns imposed by the governments across the world. 

     

    As the increment and development of this market is directly proportional to the production of vehicles in the automotive sector, the growth rate was hampered. However, the growth has regained after the lockdowns uplifted but remained slow as compared to the one predicted. The growth of this sector will boost with the increase in governmental efforts for the development of intelligent car telematics, increase in demand for features offered by smartphones and driving automated technologies with passenger safety.

     

    The growth strategies planned by several OEMs and first tier companies have failed due to the outbreak disrupting supply chain operations. As supply chain operations are hampered, the supply of electronic components and raw materials is affected that results in delays. As the market has started to recover, with China that accounts for more than 29% of the automotive car market has reopened and resumed activities. 

     

    COMPETITIVE LANDSCAPE

    SI No Timeline Company Updates
    1 FY-2021 Connexion The revenue of Connexion for the year 2021 was $4,500,000 and in the previous year the revenue was $5,500,000.
    2 July 2021 Hitachi Hitachi has completed the acquisition of Global Logic in order to accelerate the digital transformation on a global scale by expanding its business.
    3 February 2021 Harman Harman, a subsidiary of Samsung Electronics Co Ltd has acquired the 5G Edge and V2X Leader Savari for developing vehicle-to- everything communications (V2X) technology in 5G Edge and automotive devices.

     

    The company LDRA, which is the provider of automated software verification and source code analysis in collaboration with OpenSynergy, a company specialising in automotive embedded software have started to promote a defence strategy in depth combined with hypervisor technology and secure coding technology in order to combat with the concern from hacks.

     

    As of May 2021, Stellantis NV and Foxconn have joined together to form a subsidiary FIH Mobile to form a Mobile Drive with 50/50 voting rights to develop new in-cabin advanced technologies and entertainment capabilities

     

    As of October 2020, Toyota Motor Corp in collaboration with KDDI Corp, Japan’s key automaker have decided to invest $500 million to extend their partnership for the mobile carrier. Toyota is set to buy 18.3 million worth of treasury shares from the company KDDI, this will boost the company’s stake from 12.95% to 13.74%, making the partnership whole.

     

    In May 2020, Huawei, the ICT provider globally, collaborated with about 18 automakers in order to establish a 5G enabled ecosphere in automobiles to accelerate the commercialisation of the 5G technology. The collaboration includes First Automobile group, Dongfeng Motor Corporation, Chang’an Automobile, SAIC Motor Corporation, BYD Auto and many more.

     

    In January 2020, the Volkswagen group and Aeris communication, IoT provider, announced their joint venture named Ventic LLC to develop connected vehicle technologies. The Volkswagen group has a 51% stake in the company with majority power hold over the operations.

     

    An Indian company Kia, has taken lead over the connected car market with over the company’s 50,000 customers buying variants with UVO connect feature. The company has now launched a new model “Sonet” a compact SUV with a 10.25 inch touchscreen with advanced technology. They are also planning to launch the OTA updates (Over the air), which allow the telematics software to be updated wirelessly instead of going to a workshop, expanding with an investment of 400 crores in India.

     

    COMPANY PROFILE

    The key software developer companies that provide connected car services between the automakers and the network providers are listed below:

    1. Airbiquity
    2. Nordsys
    3. Bosch
    4. Connexion
    5. Intellias
    6. Global Logic
    7. KAA
    8. Harman
    9. Ignite
    10. CloudMade

     

    THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS

    1. The market size (both volume and value) of global connected car market in 2021-2026 and every year in between?
    2. Upcoming electric vehicles and their connectivity platform
    3. Cost breakup and average margin on connected car hardware
    4. Average B-2-B connected car hardware price in all segments
    5. New development and technical trends in connected car market 
    6. Market share of connected car suppliers in BEV and PHEV segment respectively
    7. Their future strategies to outdo competition
    8. Potential new entrants in connected car market

     

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    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
    19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
    20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
    21 Product installation rate by OEM, 2021
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2021
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
     
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