North America Connected Car Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 25.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Connected Car Market Analysis
Currently, North America Connected Car Market is valued at USD 30.05 billion and is expected to reach USD 114.40 billion in the next five years, registering a CAGR of 25% during the forecast period (2022-2027).
As automotive manufacturers have resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the long term, increasing investments in R&D by major industry players, rising Internet penetration, availability of 5G, falling data costs, and growing preference of customers for connectivity features over mechanical specifications of vehicles and a rise in sales of electric and autonomous vehicles are creating demand in the automotive and transportation industry with a surge in sales of connected vehicles in North American market.
Key players in the market are expanding their presence in digital mobility to cater to the increased demand for connected cars. For instance, in October, 2022: Ford Motor Co. opened Ford Atlanta Research and Innovation Center (FARIC) in Atlanta in United States, to accelerate the digital transfofmation in the company. The R&D Centre will focus on developing and testing new technologies for connected vehicles, application of artificial intelligence in obility and identifying new partnerships for university research in connected mobility.
The United States is anticipated to be the dominant market for connected cars in the region due to the large prescence of automotive OEMs, high levels of technology awareness amongst the general car buyers, preference for infotainment and telematics in vehiclles, wideperad adoption of 4G/5G and growing sales of electric, connected and autonomous vehicles in the country.
North America Connected Car Market Trends
This section covers the major market trends shaping the North America Connected Car Market according to our research experts:
Growing Adoption of 5G and Telematics to Produce Growth in the Market
The increasing usage of telematics is inducing growth in the market. Telematics is increasingly favored by fleet and vehicle owners to monitor their vehicles remotely for the purposes of safety, efficiency, predictive maintenance, and driver behavior. the various partnerships between vehicle OEMs and navigation service providers to offer in-built telematics in the vehicles are further expanding the market in the region.
For instance,
- March, 2022: TomTom N.V. the global navigation specialist joined Foxconn and created MIH Consortium to build the next generation of electric vehicles (EV), autonomous driving, and mobility service applications. TomTom's expertise in digital cockpits and in-vehicle user experience (UX) for electric vehicles is anticipated to significantly benefit the MIH Consortium.
- April, 2022: Toyota Motor Corp. North America and navigation company MapBox partnered to build a new automotive navigation platform.
The growing adoption of 5G for in-vehicle connectivity is also predicted to drive the market in the coming years since latency for 5G is negligible compared to 4G/LTE which will significantly bump up the speed for data downloading and sharing inside the vehicles and the antcipated fall in the data costs of 5G as telecom majors will considerably invest in expanding 5G coverage and rolling out of cost effective 5G services to consumers. For instance,
- April, 2022: Stellantis NV partnered with Qualcomm Inc. for developing digital vehicle cockpits and 5G telematics technology which will be offered across all the vehicles from Stellantis' 14 brands.
- February, 2022 : Audi AG of Volkswagen Group and Verizon signed an agreement to develop 5G enbled vehicles. The agreement will focus on developing ultra-fast, low-latency alerts and messages along with information and entertainment to the Audi vehicles.
United States to Play Key Role in The Development of North American Connected Car Market
The United States will likely emerge as the largest market for connected cars in North America, followed by Canada and Mexico.
According to some estimates, in the United States, 91% of new passengers sold in 2021 vehicles featured some in-vehicle connectivity which translates into 13 million vehicles. The growing sales of connected vehicles in the United States can be attributed to various factors like growing sales of electric and autonomous vehicles, the preference of car buyers for connectivity features over mechanical specifications of the vehicles, growing internet penetration, falling data costs, high levels of technological awareness and the introduction of 5G.
Electric and autonomous vehicles rely mainly on sophisticated chips, sensors, and advanced software for their operation, requiring in-vehicle connectivity. Thus increasing sales of electric and autonomous vehicles are contributing significantly to the growth of the North American Connected Car Market.
Canada is also witnessing a very healthy rise in the sales of connected vehicles. The reasons are growing internet penetration, reduced data costs, and rising usage of smart devices like smartphones.
Key players are engaging in partnerships and launching new products to secure their market position and stay ahead of the market curve. For instance
- January, 2022: Honda Motor Co. North America and Qualcomm Inc. announced a new collaboration to utilize the third generation Qualcomm connected digital cockpits to deliver premium and smart in-vehicle experiences for the upcoming Honda vehicles to be launched in the United States in the second half of 2022.
North America Connected Car Industry Overview
The North America Connected Car market is moderately consolidated. The market is characterized by considerably large global players and some local players who have secured long-term supply contracts with major infrastructure companies. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.
Some major players dominating the global market are General Motors, Ford Motor Co., Toyota, Motor Corp., Stellantis NV, and Tesla Inc. Key players are engaging in mergers and acquisitions and launching new products to secure their market position to stay ahead of the market curve. For Instance,
- May, 2022: General Motors and Red Hat Inc., an IBM company, announced a partnership to accelerate General Motors' software-defined vehicle programs through the automaker's new Ultifi software platform. This collaboration will integrate Red Hat Inc.'s In-Vehicle operating systems with the Ultifi platform.
- March, 2022: BMW Group North America announced that the all-new 2022 BMW iX and i4 would feature T-Mobile's, a Deutsche Telekom company, Magenta Drive, which will turn these vehicles into Wi-Fi hotspots with benefits like in-car connectivity and unlimited voice calling.
North America Connected Car Market Leaders
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General Motors
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Ford Motor Co.
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Toyota Motor Corp.
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Stellantis N.V.
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Tesla Inc.
*Disclaimer: Major Players sorted in no particular order
North America Connected Car Market News
- September, 2022: Ford Motor Co. launched the next-generation Ford F23 Super Duty pickup truck with Ford Pro's suite of software and services to help maximize uptime, accelerate productivity, and lower the cost of ownership.
- September, 2022: Mercedes-Benz announced integrating Qualcomm's Snapdragon Digital Chassis solutions and Snapdragon Automotive Connectivity Platforms into its passenger vehicles.
- July, 2022: General Motors' brand OnStar unveiled a new corporate identity and expanded its OnStar Guardian suite of services to motorcycle riders, and integrated the Amazon Alexa voice recognition platform with the Guardian suite of services.
North America Connected Car Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (VALUE IN USD BILLION)
5.1 By Technology Type
5.1.1 5G
5.1.2 4G/LTE
5.1.3 3G
5.1.4 2G
5.2 By Application Type
5.2.1 Driver Assistance
5.2.2 Telematics
5.2.3 Infotainment
5.2.4 Other Application Types
5.3 By Connectivity Type
5.3.1 Integrated
5.3.2 Embedded
5.3.3 Tethered
5.4 By Vehicle Connectivity Type
5.4.1 V2Vehicle
5.4.2 V2Infrastructure
5.4.3 V2Pedestrain
5.5 By Vehicle Type
5.5.1 Passenger Cars
5.5.2 Commercial Vehicles
5.6 By Country
5.6.1 United States
5.6.2 Canada
5.6.3 Mexico
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Tesla Inc.
6.2.2 General Motors
6.2.3 BMW AG
6.2.4 Audi AG
6.2.5 Volvo
6.2.6 Volkswagen AG
6.2.7 Stellantis NV
6.2.8 Toyota Motor Corp.
6.2.9 Honda Motor Co.
6.2.10 Mercedes-Benz AG
6.2.11 Hyundai Kia Automotive Group
6.2.12 Jaguar Land Rover Limited
6.2.13 Nissan Motor Co. Ltd
6.2.14 Ford Motor Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
North America Connected Car Industry Segmentation
A connected car is defined as a car that offers in-vehicle connectivity to the Internet. The connected cars or vehicles access the Internet through LAN (Local Area Network) or WLAN (Wireless Local Area Network) networks. The connected cars or vehicles share internet access and data with other vehicles on the road as well as third-party mobile/web-based applications and services.
The North American Connected Car Market is segmented by Technology Type (5G, 4G/LTE, 3G, and 2G), Application Type (Driver Assistance, Telematics, Infotainment, and Other Application Types), Connectivity Type (Integrated, Embedded, and Tethered), Vehicle Connectivity Type (V2Vehicle, V2Infrastructure, and V2Pedestrain), Vehicle Type (Passenger Cars and Commercial Vehicles), and Country (United States, Canada, and Mexico). The report offers the market size in value (USD billion) and forecasts for all the above segments.
| By Technology Type | |
| 5G | |
| 4G/LTE | |
| 3G | |
| 2G |
| By Application Type | |
| Driver Assistance | |
| Telematics | |
| Infotainment | |
| Other Application Types |
| By Connectivity Type | |
| Integrated | |
| Embedded | |
| Tethered |
| By Vehicle Connectivity Type | |
| V2Vehicle | |
| V2Infrastructure | |
| V2Pedestrain |
| By Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| By Country | |
| United States | |
| Canada | |
| Mexico |
North America Connected Car Market Research FAQs
What is the current North America Connected Car Market size?
The North America Connected Car Market is projected to register a CAGR of greater than 25% during the forecast period (2024-2029)
Who are the key players in North America Connected Car Market?
General Motors, Ford Motor Co. , Toyota Motor Corp., Stellantis N.V. and Tesla Inc. are the major companies operating in the North America Connected Car Market.
What years does this North America Connected Car Market cover?
The report covers the North America Connected Car Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Connected Car Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North America Connected Car Industry Report
Statistics for the 2024 North America Connected Car market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North America Connected Car analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
