The connected vehicle sector was valued at approximately US$ 52,649.57 million in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 19.0% from 2022 to 2030, reaching an estimated US$ 212,012.9 million by 2030.
Rising Smart City Initiatives
The influence of smart city projects and infrastructure advancements on the connected vehicle market is anticipated to be substantial in the upcoming years. As urban areas worldwide transition into intelligent, technology-driven environments, the interplay between these advancements and the connected vehicle sector is poised to redefine urban mobility. The increasing focus on innovative urban initiatives is propelling investments in the infrastructure necessary for connected vehicles. These investments include the installation of sensors, data networks, and real-time traffic management systems, which collectively foster a data-rich ecosystem beneficial for the connected vehicle industry. According to the SmartAmerica Challenge, a project initiated by a White House Presidential Innovation Fellow, city governments are expected to invest around US$ 41 trillion over the next two decades to enhance their infrastructure. Additionally, in 2023, the French investment firm Eurazeo successfully closed its second smart city fund, raising US$ 449.1 million. Such initiatives are significantly contributing to the overall growth and acceptance of smart cities.
As smart cities increasingly emphasize environmental sustainability, the demand for connected vehicles, especially electric and hybrid models, is projected to rise sharply. These urban centers actively advocate for eco-friendly transportation solutions to mitigate emissions and address pollution challenges. Connected vehicles are crucial in this effort, providing features like energy management, remote diagnostics, and optimized charging, all of which support a greener and more sustainable urban transportation framework. As cities continue to promote and invest in green mobility options, the market for connected vehicles equipped with environmentally friendly technologies is expected to experience considerable growth.
Europe's automotive sector has historically been a fundamental part of the global automotive industry, recognized for its engineering excellence, innovation, and high-quality standards. This sector accounts for approximately 20% of worldwide production. The uptake of connected vehicles is accelerating across Europe, driven not only by consumer demand but also by regulatory frameworks and safety standards that promote the adoption of advanced driver assistance systems (ADAS) and advancements in vehicle-to-everything (V2X) communication technologies. European governments are actively facilitating the rollout of connected vehicles to improve road safety and lower emissions. One of the EU's initiatives in this area is the Cooperative Intelligent Transport Systems (C-ITS) project, which aims to enable information sharing between vehicles and road infrastructure. The C-ROADS Platform is being developed to standardize the deployment of C-ITS operations across Europe, in close collaboration with road authorities and operators. Several prominent European nations, including Germany, Spain, France, and the UK, are making significant investments to create the necessary infrastructure for connected mobility. For example, Spain is in the process of constructing its first intelligent highways, where Kapsch TrafficCom's technology will facilitate the digitalization of a 60-kilometer stretch of the A8 motorway near Bilbao by 2024.
Germany's automotive industry is globally recognized for its engineering excellence, precision manufacturing, and dedication to innovation. Within this sector, the connected vehicle domain has emerged as a crucial element, representing the fusion of traditional automotive expertise with state-of-the-art technology. The connected vehicle market in Germany is witnessing notable growth and influence. Major German automakers, such as Volkswagen, BMW, and Mercedes-Benz, are leading the way in integrating advanced connectivity features into their vehicles. These features encompass a range of offerings, from user-friendly infotainment systems and real-time traffic information to advanced driver assistance technologies. The German automotive industry's commitment to quality and innovation is evident in the seamless incorporation of these technologies, providing consumers with an enhanced driving experience.
Connected Vehicle Market: Competitive Landscape and Key Developments
Key players in the connected vehicle market include Harman International, Visteon Corporation, Vodafone Group, Audi AG, Robert Bosch, General Motors, Continental AG, AT&T, Denso Corporation, and BMW Group. Additionally, several other significant players in the connected vehicle market have been examined and analyzed to provide a comprehensive overview of the connected vehicle market and its ecosystem.