Connected car market expected to reach $225.16 billion by 2027: Report
North America contributed to more than one-third of the total connected car market share in 2019
Allied Market Research has published a report that established that the global connected car market generated $63.03 billion in 2019, and further estimated that the market will reach $225.16 billion by 2027.
The momentum behind the market is perceived to be a combination of an increase of connectivity solutions, the easing of vehicle diagnosis and rise in need of safety & security drive the growth of the global connected car market. However, threat of data hacking, high installation cost.
However, despite these driving forces — no pun intended — there continues to be a lack of uninterrupted and seamless internet connectivity, which is hindering market growth. The report, though, remains optimistic when it comes to the new opportunities being created by intelligent transportation system and improved performance of autonomous vehicles.
The COVID-19 pandemic also revealed itself to be a setback for the auto industry as a whole, as auto manufacturers had to halt the operations due to the global lockdown. In addition, the automotive supply chain has become complex and dependent on many providers from different locations, which again restrains the production line, according to the report.
When it comes to the technology that is supporting the connected car market, the report indicated that the 4G/LTE segment contributed to three-fifths of the market in 2019 and is estimated to maintain its dominant position during the forecast period. However, the 5G segment is expected to register the highest CAGR of 24.3% from 2020 to 2027.
Additionally, the OEM segment accounted for more than two-thirds of the total market in 2019 and is expected to maintain the dominant position throughout the forecast period.
North America contributed to more than one-third of the total market share in 2019, and will maintain its dominance throughout the forecast period, while the European region is anticipated to achieve the fastest CAGR of 20.4% from 2020 to 2027.
Another challenge facing the connected car market is cybersecurity. In one attempt to better protect autonomous vehicles and transport systems in the U.K. from attacks, the U.K. divisions of U.S. networking giant Cisco and Spanish telecoms group Telefónica recently contributed to a new “cybersecurity blueprint.”
Brendan O’Reilly, chief technology officer at O2, said: “If connected and autonomous vehicles are going to become a permanent fixture in our day-to-day lives, it will be critical that governments and the public feel reassured that this technology is secure from cyber-attacks.”