For the past several years, cars are transforming in several ways and are not limited to only transportation now. It has now turned into a state-of-the-art massive-scale computer on wheels. Digital transformation’s impact review film on the automobile industry is spearheading this growth and evolution and the connected car is commencing to take a considerable lead in the market, also providing new-fangled possibilities for various ecosystem associates, consumers, and automakers. It is now on the way to become a common norm in the automobile industry and is already turning into a reality in the last few years with the advancement of technologies such as 5G, IoT, AI, Telematics, electric vehicles, and the cloud. It is important to say, connected cars are gaining more popularity because it plays a pivotal role in the software-coupled vehicles that make transportation more effective and smart.
According to some global automobile experts, by 2027, the growth of connected cars in the market is speculated to be $125 billion. Now, as the demand for greater or larger connectivity is growing, connected cars furnished with 5G are going to take the lead in the automobile industry. Apart from having several benefits, connected cars are mostly safer for the environment, and at the same time, it offers an opportunity for the car industry to craft new technologies and develop deep relationships with customers. 5G connectivity is now speculated to be the future of mobility and reinvigorate the automobile sector. The United Nation in its report on 2020 highlighted that about 1.3 million people die every year because of road traffic mishaps and around 20-50 million suffer non-fatal injuries, most of them are at-risk road users, cyclists, and pedestrians. The unleash of connected vehicles offers a seamless flow of information between road infrastructure, vehicles, and pedestrians, which implies chauffeurs will be alerted to any kind of nearby dangers like broken vehicles, decreasing the volume of traffic accidents.
Where is the Growth of Connected Cars Heading?
According to the latest report by International research firm Statista, the growth of connected cars in the market is expected to escalate to over 70% in 2025 up from 40% in 2020 and the report also added that the international market for the connected cars is anticipated to boost from $56 billion in 2020 to about $65 billion in 2021. In this context, India is taking a good stand in enhancing and boosting the next big frontier for connected vehicles, and the nation’s market in this regard is speculated to grow over 20 percent in the coming few years with the availability of connected services ranging from 25 percent to 75 percent across various categories of OEMs. Hence, the demand and public acceptance of connected cars are going to grow significantly in India over the coming years. Another research firm Markets and Markets stated that the market for international connected vehicles is speculated to reach USD 56.3 billion by 2026 from a speculated USD 23.6 billion in 2021, at a CAGR of 19.0 percent from 2021 to 2026. There are actually several factors spearheading the market for connected cars such as the augmenting adoption of integrated connectivity, unveiling of rigorous safety regulations, and adoption of high-end luxurious vehicles.