Market Trends of Europe Connected Cars Industry
This section covers the major market trends shaping the Europe Connected Cars Market according to our research experts:
Introduction of 5G Network and Increased Use of IoT Applications
The automotive industry is crucial to Europe's GDP. The automotive sector provides for 6.1% of total EU employment, and with the rising demand for high-performing cars, connected car makers may offer lucrative opportunities for European manufacturers.
The advent of 5G is the most crucial for the development of the connected car market during the forecast period. This technology allows car owners to effectively communicate with other cars on the road, creating an unprecedented level of collaboration, which is impossible for human drivers. The fifth-generation wireless technology is expected to connect almost everything around us with an ultra-fast, highly reliable, and fully responsive network. 5G will allow us to leverage the full potential of advanced technologies such as artificial intelligence, virtual reality, and the Internet of Things (IoT). Thus, companies are focusing on the utilization and development of 5G in cars to gain a competitive edge over other players in the market.
Increased availability of 5G networks across the region is expected to make it easier for connected cars to manage vehicle speeds along smart motor highways and the future data source for vehicle-to-vehicle communication that may aid collision avoidance systems. Several use cases of 5G network connectivity implemented in European cars indicate the growing demand for the connected cars market.
Internet of Things (IoT) has seen an exponential increase in usage in the region. The different aspects of vehicles needing IoT as a technology base for connected cars, autonomous driving, and vehicle security have risen. They are projected to increase in the coming years during the forecast period.
Germany to Remain Epi-Centre for Connected Car Market Growth
Among all the European Union nations, Germany showcased itself as the major bedrock for the rising demand for connected cars.
Various companies in the region are partnering with other industry players to develop new technologies for autonomous vehicles. Most of the autonomous vehicles' electric powertrains were being employed, which is good for countries to reach their emission targets.
New technologies, such as Artificial Intelligence and its subset, Machine Learning, Computer Vision, IoT, Cloud Technologies, Smart Robotics, and Mobility, are fostering innovation in the connected and autonomous car industry, supported by governments to boost connected car sales.
Several automakers in Germany are designing, testing, and manufacturing autonomous/driverless cars, which involves huge expenditure; hence companies are focusing on improving R&D by adopting various collaborations and agreements. This, in turn, has elevated the growth potential of the connected cars market in EU.
- In May 2022, Mercedes got a huge order for Level 3 self driving vehicles from its consumer base. These vehicles are equipped with the drive pilot mode, which shall enable the key features of connected cars and driverless cars.
Moreover, with ongoing research and development across all the automakers in Germany, the connected cars market is expected to witness major boost during the forecast period.
