In-Vehicle Connectivity Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027

Report ID: GMI3427

Summary Methodology

In-Vehicle Connectivity Market size will rapidly grow in the coming years due to growing demand for convenience, safety, luxury, and comfort among consumers. The in-vehicle connectivity allows enterprises to better manage their fleet as well as provide customer satisfaction and loyalty. The rising internet penetration coupled with the increasing adoption of IoT is proliferating the market growth. The advent of advanced technologies, such as artificial intelligence in in-vehicle connectivity services, will cater to the increasing demand for on-demand mobility services and smart transportation.

The introduction of over-the-air (OTA) services in in-vehicle connectivity will enable the transmission of software updates & data between the cloud and a vehicle, mitigating the cyber threat and software recall costs for automakers as well as offering hassle-free driving experience. For instance, global automakers are anticipated to save over USD 34 billion by 2022 through OTA services.

The increasing demand for real-time surveillance and video streaming capability to monitor, analyze, and diagnose patients on the road will proliferate the in-vehicle connectivity market. These features will improve the emergency and telematics services, resulting in improved customer experience. The rise in dependency on technology coupled with a surge of tech-savvy users will contribute to the in-vehicle connectivity market. The supportive government initiatives and regulations to increase the number of connected vehicles on roads will boost market growth. For instance, in April 2018, the European parliament enforced the regulation mandating E-call systems in vehicles, ensuring passengers’ safety.

Parallel growth for Internet Service Providers (ISP) is anticipated to drive the growth of in-vehicle connectivity market. Parallel growth of ISP will influence the connected vehicles market as well as enable connectivity systems embedded within the car for a hassle-free driving experience. The increase in the demand for driver assistance systems is expected to drive the growth of market as it will help in hassle-free parking and fuel purchase from dashboards without requiring any cards or devices to complete the purchase.

By vehicle type, passenger vehicles are anticipated to hold the largest market share in the in-vehicle connectivity market due to the growing demand for luxury, safety, convenience, and comfort in the vehicle environment. The increasing demand for in-vehicle infotainment, payment services for hassle-free, secure, and safe driving experience is fueling the market. The growing demand for road-side assistance through telematics solutions in passenger vehicles is anticipated to drive the market.

Asia Pacific is estimated to grow at a significant CAGR in the in-vehicle connectivity market due to rising disposable income and spending on luxury & premium vehicles in developing countries including China, India, and Indonesia. The growing IoT infrastructure development coupled with the rising internet penetration will contribute to the market growth in the region. The presence of prominent automakers, such as Toyota, Honda, and technology players such as Alibaba in the region, are supporting the market growth. These players are also focusing on strategic alliances with other key players to enhance in-vehicle connectivity services for automakers, proliferating the in-vehicle connectivity market. For instance, in April 2018, Alibaba AI Labs partnered with major automotive OEMs including Audi AG, Daimler AG, and Volvo AB to supply AI technology for home-to-vehicle connectivity in China.

OEMs are focusing on developing partnerships with infotainment players, infrastructure, cybersecurity, and application design & development. For instance, in July 2018, Ford partnered with Baidu for joint development of technology related to connectivity and infotainment systems. According to the partnership, Baidu is expected to supply its DuerOS conversational AI platform for future infotainment systems enable more sophisticated voice recognition and other features in vehicles manufactured by Ford.

Some of the key market players of in-vehicle connectivity market, which include automotive manufacturers are Audi AG, Baidu, Inc., BMW AG, Continental AG, Daimler AG, Ford Motor Company, General Motors Company, Harman International Industries Inc., Honda Motor Co. Ltd., Hyundai Motor Corporation, IBM Corporation, Panasonic Corp., Tesla Inc.,  Toyota Motor Corporation, and Volvo AB.

By Services, 2014-2025 (USD Million)

  • Remote monitoring & control
  • Safety & security
  • Fleet management
  • Infotainment

By Vehicle Type, 2014-2025 (USD Million)

  • Passenger Vehicle
  • Commercial Vehicle

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Netherlands
  • APAC
    • China
    • Japan
    • Australia & New Zealand (ANZ)
    • South Korea
    • India
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • UAE

Company Profiles:

  • Audi AG
  • Baidu, Inc.
  • BMW AG
  • Continental AG
  • Daimler AG
  • Ford Motor Company
  • General Motors Company
  • Harman International Industries Inc.
  • Honda Motor Co. Ltd.
  • Hyundai Motor Corporation
  • IBM Corporation
  • Panasonic Corp.
  • Tesla Inc. 
  • Toyota Motor Corporation
  •  Volvo AB


What Information does this report contain?

Historical data coverage: 2013 to 2015; Growth Projections: 2016 to 2026.
Expert analysis: industry, governing, innovation and technological trends; factors impacting development; drawbacks, SWOT.
6-7 year performance forecasts: major segments covering applications, top products and geographies.
Competitive landscape reporting: market leaders and important players, competencies and capacities of these companies in terms of production as well as sustainability and prospects.

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