Market Overview

Connected cars are considered to be the future of automobile industry. In addition to wireless LAN devices, connected cars have active safety solutions and automated driver assistance systems. Enabling car owners to connect with all the connectivity devices that are inside and in the vicinity of cars, connected cars also assure to maintain safe distance between cars on roads.

These cars also allow drivers to mechanically monitor cars’ performance and physical condition. The connected car technology can also be used to connect to cars through smartphones or other mobile devices.

Research indicates that the market for connected cars, after 2010, has been growing in a nascent stage each year. Providing a wide range of opportunities to automotive and telecom industries, as well as consumers, the market is anticipated to gain mass penetration and witness substantial growth in the near future.

Europe, which is currently the second largest market for connected cars, is estimated to outpace North America and create the largest market by 2020 end. Rising demand for vehicle safety and security will continue to be a key driver for market growth.

Europe Connected Cars Market: Key Drivers

Increasing demand for electric vehicles from European consumers is playing a crucial role in boosting the market for connected cars. Moreover, the market is predicted to gain traction due to widespread adoption of mobile and wireless technologies.

Some governments within EU are introducing various regulations and initiatives regarding vehicles safety, which could be a favourable move for connected car manufacturers and dealers. In addition, availability of advanced telecom and road infrastructure will also continue to fuel the European market for connected cars.

Key Restraints

While the connected car technology and smartphone technology are conjoint in this industry, the difference in their lifecycles is significant. Car development is a five-year cycle but the smartphone is developed within a much shorter time span. This is expected to act as a major restraint for connected cars in tandem with smartphone technology.

Moreover, car manufacturers will need long-term, compatible mobile partners, which is currently a challenge.

A recent survey concluded that many consumers from the U.K., Netherlands, Germany, France, Sweden, Spain, and Italy are concerned about the lack of standards across connected car manufacturers. This is anticipated to be a major barrier in the market.

Research reflects significant reluctance among consumers about data privacy and digital safety. A sizeable consumer population still prefers to personalise their cars’ web connection via smartphones’ USB or Bluetooth, rather than buying a connected car with built-in options. This is another factor that could be a major roadblock to market.

Furthermore, many people are not yet ready to pay separately for embedded car connection, which is foreseen to be a setback for the market in Europe.

Segmentation: Europe Connected Cars Market

Europe Estimated to Surpass the Current Market Leader, North America The EU has always been highly supportive in promoting the connected car technology. The European CEN and ETSI have set certain standards for cooperative intelligence transport systems (ITS), as per the demand from the European Commission for safer, more efficient, and more sustainable transport. The latest standards make it mandatory for manufacturers to equip each car model with a GPS system and 3G/4G connectivity. Moreover, the technology is expected to interconnect drivers with automakers, dealers, and auto repair shops. This has been a major breakthrough for the connected cars market in Europe.

Influential Trends in the Connected Cars Market

Complete smartphone integration, teen drivers’ monitoring, digital dashboards, GPS navigation systems with travel guidance, and self-driving (driverless cars) technology are the most notable trends in the connected cars industry, in Europe and globally.

In the recent past, Volvo has launched a corporate initiative, according to which self-driving cars and autonomous driving features will be in market in the near future. The company’s Drive Me Project in 2017 also featured 100 self-driving Volvos on public roads.

Key Players: European Connected Cars Market

Key players in the European connected cars market include Apple, Inc., Airbiquity, Inc., BayerischeMotorenWerke AG (BMW), Delphi Automotive LLP, Ford Motor Company, Microsoft Corporation, TATA Consultancy Services Ltd., Toyota Motors Corp., Verizon Communications, Inc., and AT&T, Inc.

Major car manufacturers have already started taking efforts toward smartphone integration to cater to connectivity demand from consumers. Since several companies from telecom and software verticals are rapidly entering the connected cars market, OEMs are expected to concentrate on strengthening their hold in the market.

The research report presents a comprehensive assessment of the market and contains thoughtful insights, facts, historical data and statistically-supported and industry-validated market data.It also contains projections usinga suitable set of assumptions and methodologies. The report provides analysis and information according to categories such as market segments, geographies, types, technology and applications. The report covers exhaustive analysis on:

Market Segments

Market Dynamics

Market Size

Supply & Demand

Current Trends/Issues/Challenges

Competition & Companies involved

Technology

Value Chain

Regional analysis includes

Germany

France

UK

Spain

Italy

Eastern Europe

Rest of the Europe

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors, along with market attractiveness within the segments. The report also maps the qualitative impact of various market factors on market segments and geographies.