According to a report by Research and Markets, the connected car market is expected to grow from 5.1 million units in 2015 to 37.7 million units by 2022, at a CAGR of 35.54% during the forecast period.
Regularity mandates on some connected car modules such as eCall, fleet management, intelligent transportation system (ITS) and usage-based insurance (UBI), and vehicle data updates, which would detect any defect and help manufacturers to recall vehicles in time are expected to drive the growth of the connected car market. However, data security and lack of network coverage is expected to restrict the growth of this market.
The growing usage of complex level data processing for artificial intelligence and self-driving features would help field-programmable gate array (FPGAs) semiconductor components to grow at the fastest rate in the connected car market followed by Wi-Fi connectivity integrated circuits (ICs). The vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity are expected to drive the growth of the connected car market for Wi-Fi connectivity ICs.
Combined telematics and infotainment application has the largest market share among all applications for connected car. The government mandates on telematics application and introduction of cloud-based services for music and other multimedia support such as video, games and internet browsing has led to an increase in the combined telematics and infotainment applications.
- Regularity Mandates on Connected Car Modules
- Growing Demand for Smartphone Features in Cars
- Vehicle Data Updates Would Detect Any Defect and Help Manufacturers to Recall Vehicles in Time
- Network Coverage Limitation
- Cybercriminals Could Gain Access to the Customer’s Data and Use This Information for Unscrupulous Activities
- Connected Car is A Stepping Stone for Autonomous Vehicles
- Insurance Rate Vary as Per Usage
- Consumer Electronics Providers Could Offer Telematics and Infotainment Equipment at A Cheaper Cost
- Disparity of Product Design Cycle Between Oems, Embedded Solutions of Cars and Smartphones
- Need to Reduce the Cost of Telematics and Infotainment Equipment and Services
- Creating an Ecosystem Through Cross-Industry Partnerships Between Oems, Technology Companies, and Mobile Network Operators