The Europe Connected Cars market is anticipated to register a CAGR of about 16.9% during the forecast period (2020 – 2025).
- There is a growing demand for connected car devices as they help assist in monitoring vehicles and drivers by exchanging critical information between nearby infrastructure and vehicles. Europe is home to many of the largest automotive technology manufacturers. Through smart platforms, IoT and telematics together have enhanced connectivity, communications, and responses that offer infotainment, safety, security, and increased vehicle management to drivers, passengers, and commuters.
- As of 2019, Europe has the second largest market share in the connected cars market. Europe is known for its extensive technological OEMs, which works in domains such as in-car entertainment, navigation, and in-car connectivity (for example, through Bluetooth), which have evolved rapidly over the last decade.
- The major driving factor driving the growth of connected cars market is the increasing number of road accidents and higher demand for vehicle management. Governments, international safety originations, and significant players in the market are working together to use of information-sharing and connectivity to improve road safety further and meet reliant safety standards. Another factor driving demand is the rise in luxury car sales.
Key Market Trends
Tackling road safety with evolving connected features by integrating smartphones
As smartphone use has risen, the usage of smartphones for the same purposes in their cars has also increased. Car manufacturers are opting for modular hardware design, which is built into the car and works with smartphone's software. Access to smartphones makes it extremely easy and accessible to the user. Moreover, it helps extract large quantities of data for car manufacturers and the government to improve the performance of the connected vehicles.
The modern connected cars offer more than just a group of systems which function independently, and it integrates independent entities to facilitate networks, communications, data storage and band frequencies with 3-G and 4_G connectivity between the connected vehicle and its surrounding.
For instance, construction workers can be informed, in case there is an approaching vehicle at the site of construction. Traffic police can identify over speeding cars, which could then lead to accidents. Also, driving patterns help determine if the driver is intoxicated. All this becomes accessibly convenient for smartphone users, which will further improve the penetration of connected systems-built cars.
Europe holds the second-largest market share for the global connected cars market.
The automotive industry is crucial to Europe's GDP. The automotive sector provides for 6.1% of total EU employment, and with the rising demands for high-performing cars, connected cars marker could provide lucrative opportunities for manufacturers in Europe.
The European parliament implemented regulations, mandating e-call systems in vehicles that ensure the passenger's safety, and it has been estimated that it will save more than 2,500 lives on the road. These initiatives and favorable regulations increase the number of connected vehicles on roads, which further creates a massive demand for connected vehicle services and connected vehicle devices.
In 2018, Germany saw a 40% rise in the electric car sales with increasing connected car features installed within the vehicle, signifying that the EV industry is a growing customer base for the automotive ECU market, which will also lead to the rise in connected cars market. As a result, the manufacturers' primary focus is including the latest connected technology to appeal to its customers, companies like BMW and Audi provide connected services to improve customer relationships and to differentiate their brands from the competition.
The European Connected cars Market is moderately consolidated with existing players such as Continental AG, Denso Corporation, Robert Bosch GmbH, Autoliv, Harman International, and Delphi Automotive LLP. As the demand for connected systems is growing in the region, the connected-cars manufacturers are trying to have the edge over its competitors by making joint-ventures, partnerships, launching new products with advanced technology. For instance, in 2020, all Volkswagen Golf and Polo will be integrated with Microsoft's Azure cloud are working on the IoT Edge platform, the Automotive Cloud, which will provide drivers advanced connected vehicles.
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