Connected Car Market to Surge at 18.1% CAGR till 2028; Rapid Advancements in Automotive Communication Technologies to Fuel Growth

The global connected car market size is projected to reach USD 191.83 billion by 2028 as a result of the growing presence of automotive original equipment manufacturers (OEMs) in developed economies, shares Fortune Business Insights™ in its report, titled “Connected Car Market Size, Share & COVID-19 Impact Analysis, By Application Type (Mobility Management, Telematics, Infotainment, and Driver Assistance), By Network Type (3G, 4G, 5G, and Satellite), By Technology Type (Embedded, Tethered and Integrated), By Sales Channel Type (OEM and Aftermarket), By Communication Type (Vehicle to Vehicle and Vehicle to Infrastructure) and Regional Forecasts, 2021-2028.” The report states that the global market value stood at USD 55.56 billion in 2020 and the market is expected to register a stellar CAGR of 18.1% from 2021 to 2028.

The connected car market growth is likely to be negatively impacted by the outbreak of the COVID-19 pandemic as the unhindered transmission of the infection has disrupted vehicle production. In addition, the sudden downturn in the global economy has contracted the demand for cars worldwide, which has further diminished the outlook of this market.

BMW to Upgrade Connected Car Services with New Features

In July 2020, BMW announced that it will be releasing several new software upgrades to its cars, improving vehicle connectivity and navigation. For example, BMW Maps will be more accurate and faster than its previous versions and will not be equipped with cloud-based route calculation. The Connected Parking ability will allow drivers to find parking spots easily, especially in crowded and busy areas. Even more exciting is the BMW Digital Key, which converts an iPhone into a fully digital and secure car key. These upgrades will come preinstalled in BMW’s fresh-from-the-factory vehicles such as the new BMW 5 Series, while those produced before July will get over-the-air upgrades.

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https://www.fortunebusinessinsights.com/industry-reports/connected-car-market-101606

Increasing Presence of Automotive Cyber Security Companies to Support Growth

The growing demand for cybersecurity mechanisms in connected cars has led to a steadily expanding presence of companies specializing in the development of cybersecurity solutions for connected vehicles. For example, Seattle-based Centri installs its IoTAS on mobile apps and chips to protect the sensors on vehicles and the data generated from them and requires no internet connection. Similarly, Israel-based Argus Cyber Security equips commercial vehicles with anti-cyber-attack mechanisms that protect all connected components of a car. The success of the company’s offerings has been recognized by large automotive organizations, with Germany-based Continental AG integrating Argus’s cybersecurity systems in all of its connected vehicle electronics. Another notable example is Aptiv, an auto parts maker based in Michigan that develops cybersecurity tools for self-driving cars. The trend of equipping connected vehicles with cybersecurity technologies is accelerating the connected car market share.

Joint Ventures between Key Players to Enhance Market Potential

Dominant players in this market are forming joint ventures to deepen the penetration of communication technologies in automobiles. These ventures are aimed at rapidly enhancing the innovation capabilities of the involved companies to develop and introduce game-changing solutions for connected vehicles. Moreover, with high-end safety features gaining popularity in emerging economies, the business horizons for the key players in this market are set to broaden in the forthcoming years.

Industry Development:

• January 2020: Volkswagen Group of America and the IoT specialist, Aeris, announce the formation of a joint venture, Ventic LLC, to develop and operationalize connected vehicle platforms. Enabling Volkswagen to manage its connected car platform via a unified system, the company will be catering to Volkswagen’s market in North America, beginning with the release of the company’s next-generation Car-Net.

List of Key Players Covered in this Market Report:

• HYUNDAI MOTOR GROUP (Seoul, South Korea)


• General Motors (Michigan, United States)


• Audi (Ingolstadt, Germany)


• Robert Bosch GmbH ( Gerlingen, Germany)


• Continental AG (Hanover, Germany)


• Volvo (Gothenburg, Sweden)


• Ford Motor Company (Michigan, United States)


• TomTom Inc. (Amsterdam, Netherlands)


• Daimler AG  (Stuttgart, Germany)


• AT&T (Texas, United States)


• Harman International (Connecticut, United States)

Further Report Findings:

• The telematics segment, which held a market share of 17.12% in 2020, is predicted to make considerable gains in the coming years owing to the steady development of communication infrastructures on highways around the globe.


• Asia Pacific is expected to lead the market share during the forecast period on account of the growing demand from consumers in the region for in-vehicle embedded connectivity systems. The Asia Pacific market size in 2020 stood at USD 32.90 billion.

Table of Segmentation: