Global Connected Vehicle Market By Technology (4G-LTE, 3G, 5G, and 2G), By Vehicle Connectivity Type (Vehicle to Vehicle (V2V), Vehicle to Pedestrian {V2P}, Vehicle to Device (V2D), and Vehicle to Infrastructure (V2I), By Connectivity Solution (Integrated, Embedded, and Tethered), By Application, By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The global connected vehicles market size is expected to be worth around USD 331.9 billion by 2032 from USD 62.9 billion in 2022, growing at a CAGR of 18.60% during the forecast period from 2022 to 2032.

A connected vehicle is capable of connecting over a wireless network to nearby devices. Connected vehicles are a technology with wide implications. Connected vehicles connect to the network to enable bi-directional communications between vehicles such as trucks, buses, cars, and trains. Connected vehicle facilities, such as safety, security, and robust network technology, enable the driver to connect with online platforms.

The vehicles are prepared with various processors and sensors, which offer correct and real-time information to the driver. An increase in the production of vehicles and a rise in demand for comfort & luxury in vehicles are anticipated to propel the market growth.

Driving Factors

The Increasing Addition of Innovative Safety Features in the Vehicle Drives Market Growth

The increasing addition of innovative safety comfort features in the vehicle, such as vehicle demonstration, new support systems, and many others, shows significant market growth.

In addition, increasing production of vehicles with including features in the rising awareness towards the safety of passengers and government policies are anticipated to boost demand in the market. Furthermore, the increasing approval of the Advanced Driver Assistance System is estimated to boost the connected vehicle market.

Furthermore, the rapid acceptance of cameras, processors, and advanced technologies in mapping road problems has improved the availability of ADAS in vehicles, which is also anticipated to decrease road facilities.

Restraining Factors

Lack of Connectivity Infrastructure to Hamper Market Growth

As network connections on highways are limited, vehicles cannot connect to the cloud. Related to developed countries, the growth of connected vehicle infrastructures in developing countries is lower.

Uninterrupted 4G and 3G technology are generally available in urban areas. This is a significant factor that restricts the growth of the market. For instance, there are more than millions of mobile users in India, but there is a vast lack of 4G data networks in rural areas.

Growth Opportunities

Intelligent Transportation System to Provide Opportunities for the Global Connected Vehicles Market

The data exchange between the vehicle and the driver is the innovative aftermarket technology connected automobiles deal with as part of their safety features. To increase vehicle efficacy, maintenance costs, the driver’s driving experience, and safety communications of vehicle technology. An additional factor of connected vehicles helps the driver choose the best route to their destination. Also, it brings notifications about parking availability and traffic blocking.  

Trending Factors

Increasing Demand for Advanced Driver Assistance Systems in Vehicle

Independent cars and connected vehicles are achieving customers’ attention and are estimated to obtain wide approval during the forecast period. With the increasing technological developments in the automotive industry, end users are ready to spend more on the latest technologies, improving the experience and increasing riders’ safety.

Technology Analysis

The 5G Segment to Held Major Portion of the Market

The global connected vehicles market is segmented based on technology into 4G, 3G, 5G, and 2G. The 5G segment accounted for the largest market revenue share of 38% in 2022.

Owing to various telecommunication companies are developing innovative 5G technology for better-quality communication among connected vehicles. According to the 5G Automotive Association, more than 60% of road accidents can be avoided with the help of 5G technology.

5G can provide high speed, and massive capacity, offering the potential to change experience with a mobile device. In addition, 5G technology promises to bring the low wireless infrastructure essential for smart generation. Moreover, the 4G-LTE segment was the dominating during the historical period and is estimated to hold the second largest market share because it brings high speed to mobile and broadband data.

By Vehicle Connectivity Type Analysis

The Vehicle-to-vehicle (V2V) Segment is Expected to Show Lucrative Growth During the Forecast Period

Based on vehicle connectivity type, the globally connected vehicles market is divided into vehicle-to-vehicle (V2V), vehicle-to-pedestrian (V2P), vehicle-to-device (V2D), and vehicle-to-infrastructure (V2I).

Among these vehicle connectivities, the vehicle-to-vehicle (V2V) segment has shown the maximum market revenue share in 2022 and accounted for the highest CAGR during the forecast period. V2V is a real-time communication and data exchange among different vehicles.

Approximately speaking, vehicles produce a network and transport signals that are used to alert drivers of potential hazards.

The vehicle-to-infrastructure (V2I) segment is expected to grow well over the forecast period. Rising government initiatives to develop a V2I framework ensure the stable growth of the segment in the market. However, the vehicle-to-pedestrian (V2P) segment registers the maximum CAGR during the forecast period.

V2P includes using in-vehicle camera systems such as LiDAR technology to generate collision warnings and technology to generate collision warnings and identify pedestrians to alert drivers. However, the reliability of V2P is still contentious, and as a result, many prefer to use connectivity to smart sensors to avoid and identify collisions.

By Connectivity Solution Analysis

The Integrated Segment Dominated the Highest Market Revenue Share During the Forecast Period

Based on the connectivity solution, the global connected vehicles market is divided into integrated, embedded, and tethered. The integrated segment dominated the highest market revenue share of 46% in 2022. This system provides unlimited data-sharing prospects, is cost-effective, and relates to tethered and embedded systems.

Key original equipment manufacturers worldwide have related with several key market players to improve advanced integrated systems for connected vehicles that prevent seamless connectivity to customers.

The embedded segment is estimated to hold the second-largest market revenue share during the forecast period. Cost-effective optimization of service plans, government regulations, and cloud services are all projected to support its dominant position in the connected vehicles market.

By Application Analysis

The Driver Assistance Segment Dominated the Market with the Highest Revenue Share

Based on the application, the globally connected vehicle market is divided into driver assistance, telematics, infotainment, mobility management, and others. The driver assistance segment registered the largest revenue share in 2022. Advanced driver assistance system includes technologically advanced features, such as lane keep assist, park assist, and adaptive cruise control, that increase vehicle safety.

Numerous governments across the globe imposed strict safety rules on automotive manufacturers. The mobility management segment accounted for the second-largest growth in the connected vehicle market. This system allows the driver to reach the destination safely, quickly, and with the most efficient fuel consumption. It also gives information about road accidents and extreme conditions to avoid external hazards.

By End-User Analysis

The Original Equipment Manufacturer Segment Dominated the Highest Market Revenue Share

The global connected vehicles market is divided into aftermarket and original equipment manufacturers based on the end-user. The original equipment manufacturer segment registered the largest revenue share in 2022 due to the increasing technological developments such as cybersecurity and unbroken connectivity.

An additional factor driving the original equipment manufacturer market growth is the expansion of collaborations with major players to produce affordable components.

Key Market Segments

By Technology

• 4G-LTE
• 3G
• 5G
• 2G

By Vehicle Connectivity Type

• Vehicle to Vehicle (V2V)
• Vehicle to Pedestrian(V2P)
• Vehicle to Device(V2D)
• Vehicle to Infrastructure(V2I)

By Connectivity Solution

• Integrated
• Embedded
• Tethered

By Application

• Driver Assistance
• Telematics
• Infotainment
• Mobility Management
• Other Applications

By End-User

• Aftermarket
• Original Equipment Manufacturer

COVID-19 Impact Analysis

The COVID-19 pandemic positively impacted the global digital content creation connected vehicle market as lockdowns and trade restrictions have led to supply chain disturbances and a halt of vehicle production worldwide.

As a result, companies across the automotive value chain can focus on improving connectedness across their products and services.

Regional Analysis

Asia-Pacific Region Accounted Significant Revenue Share of the Global Connected Vehicle Market

Asia-Pacific accounted for a significant revenue share of 45% of the connected vehicle market due to the rising approval of high-end and cost-effective connectivity solutions. Additionally, customers’ demand for in-vehicle embedded connectivity systems and the growing shift towards vehicles has fueled the growth of the connected vehicles market in this region.

Europe is anticipated to be the second-largest region in the market. Owing to the various development projects and prominent key players in this region. Increasing collaborations among the connected vehicle market players have led to the approval of advanced technologies.

North America is anticipated to grow progressively in the connected vehicle market during the forecast period. The increasing approval of innovative technologies such as 5G networks will benefit the North American region’s healthy growth.

Key Regions and Countries Covered in this Report:

• North America
• • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America

• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The Constant R&D activities by the company are leading to the creation of new technologies. The company’s key goals are a vast range of advanced connectivity solutions and developments of self-driving vehicles. Some prominent players include Robert Bosch GmbH, Harman International Industries, Inc., Airbiquity Inc., DENSO Corporation, and other key players.

Major Key Players:

The following are some of the major players in the global connected vehicle market industry

• Robert Bosch GmbH
• Harman International Industries, Inc.
• Airbiquity Inc.
• DENSO Corporation
• Visteon Corporation
• Continental AG
• Intellias
• Qualcomm Technologies Inc.
• CloudMade
• Ford Motor Company
• Intellias Ltd.
• BMW Group
• Samsung Electronics
• Aptiv PLC
• Veoneer Inc.
• Garrett Motion Inc.
• Magna International Inc.
• AT&T Inc.
• Other Key Players

Recent Developments:

• June 2022- PATEO Corporation and Qualcomm Technologies, Inc. expanded their partnership to develop solutions to support vehicle intelligence, Service-Oriented Architecture, and multi-domain fusion based on central controllers.
• July 2021- Garret Motion Inc., a unique technology company, unveiled Model-based Predictive Motor Company. The program will offer methods for vehicle health management.

Report Scope: