Albany, NY -- (SBWIRE) -- 10/18/2016 -- The global connected car market is primarily driven by the changing consumer preference and growing awareness about safety and security. The growing need for connectivity and government mandates are also supporting the growth of this market. Some of the factors inhibiting the growth of this market are high cost of hardware and risk of distraction by driver. Rapid advancements in network technology serve as an opportunity, fueling the growth of this market.
The global connected car market is anticipated to reach a valuation of US$131.9 bn by 2019.
Among the key regions in the global connected car market, North America accounted for the largest share in 2012. The presence of a number of automotive companies and technology players has supported the growth of the market in the region. However, market players are eyeing Asia Pacific as the future market for connected cars. "The rising demand for applications such as fleet management, navigation, and infotainment from China will augment the growth of the regional connected cars market," the TMR report
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Complex User Interfaces in Connected Cars Might Distract Drivers
The growing awareness about road safety and security has led to the increased demand for connected cars. The rising need for connectivity, emerging applications in vehicles, the growing demand for commercial B2B services, and the implementation of various government mandates regarding safety of drivers has further supported the growth of the global connected car market. "In-car infotainment services have played a pivotal role in the growth of the connected cars market worldwide," cites a TMR analyst.
However, the high hardware and communication cost in connected cars might restrain the market's growth during the forecast period. Complex user interfaces have been associated with driver distraction, thereby increasing safety risks. A number of accidents during test phases of connected cars might negatively impact the growth of the market.
Growing Trend of Luxury and High Tech Vehicles to Define Future of Global Connected Car Market
The advancements in network technology have created immense opportunities for the growth of the market. The growing trend of luxury and high tech vehicles across developed economies, changes in regulations regarding road tolling, laws restricting the usage of handheld mobile devices during driving, and affordable rate of data packages for mobile networks are some of the key trends that would define the future of the global connected car market.
The competitive landscape of the global connected car market included players such as Ford Motor Company, General Motors, BMW AG, Sierra Wireless, Audi, Gemalto, Mercedes-Benz, Toyota Motor Corporation, Hyundai Motor Co., Verizon Communications, Delphi Automotive, and Microsoft Corporation. The entry of technology companies in the market landscape has intensified the competition. A number of automotive companies are partnering with technology firms to develop connected cars.
The market players have registered an increased demand for 4G technology among users. As it is the fastest connectivity technology, it accounted for over 30% of the market in 2013 with users preferring it to download the latest apps and services in a vehicle. Furthermore, the market players are focusing on developing advanced navigation systems in connected cars. "The growing demand for real time updates about traffic has made the navigation system as the most sought after feature in connected cars," a TMR analyst points out.