The global market for connected cars will reach $53.9 billion by the end of 2020, growing at a CAGR between 14.5% and 25% until 2027. The increasing demand for safety and comfort will drive the growth of the market in the near future. Some of the biggest players in the global connected car market by revenue, size, and expert consensus include Bosch, Harman, and Continental.
Connected Car Market
- According to Market and Markets, the global market for connected cars will reach $53.9 billion by the end of 2020.
- The market was initially projected to be valued at $63.2 billion in 2020 but the decline in sales and production as a result of the COVID-19 pandemic has had a negative impact on the projection for this year.
- The global market is expected to grow at a CAGR between 14.5% and 25% until 2027, reaching $215.23 billion.
- One of the main drivers for the rapid adoption of connected technologies in cars is the demand for increased comfort and safety.
- Governments have also started pushing for the production of advanced driver-assistance systems (ADAS) and safety features.
- The European and North American connected markets are expected to register significant growth in the near future, mostly driven by the desire to increase safety.
- Some of the biggest players in the global connected car market by revenue, size, and expert consensus include Bosch, Harman, and Continental.
- Bosch is German technology company that focuses on the development of environment-friendly connected services for in-home and automotive applications.
- In 2019, the company generated over €77 billion in revenue, employing 72,600 researchers and engineers around the world and over 400,000 associates.
- They have facilities in over 150 countries in Africa, Asia, Europe, North America, South America, and Oceania.
- One of its main advantages lies in its commitment to the environment.
- The company has pledged and abode by its promise to create a process that is sustainable and environment-friendly.
- Moreover, they have always marketed itself as creators and innovators pushing for a more sustainable future through its products.
- To do that, Bosch has consistently invested in R&D in order to remain ahead of its competition and keep its promises to its customers.
- In 2019, the company spent €6.1 billion on research and development.
- They have also been consistently rated among the most stable and progressive companies in the world by S&P and Fitch.
- Harman is a global leader in the design and engineering of cconnected products and solutions for automakers and consumers.
- They specifically focus on producing connected car systems, audio and visual products, and enterprise automation solutions.
- In 2017, Harman was acquired by Samsung due to its unique position in the automotive market and its innovative approach towards connected technologies.
- Their revenue just before being acquired amounted to $6.9 billion, with their last quarter, Q2 of 2017, generating over $1.9 billion in revenue and employing over 26,000 people.
- Their acquisition by Samsung allowed them to explore new markets, improve their quality and focus more on their innovative initiatives.
- Harman’s efforts have been able to improve the quality and functions of audio devices in the car, introducing voice commands and clear in-car communication.
- As a result of their continued efforts to push connected car technologies, in 2019 alone, the company’s design team received 25 iF Design awards, bringing their total rewards to over 370.
- They have also recently announced that they have developed a cloud application that is designed to monitor the car‘s condition and report any anomalies.
- Continental is a German automotive manufacturer that has been specializing in the production of brake systems, interior electronics, automotive safety products, powertrain and chassis components, tachographs, and tires for over 150 years.
- Their goal is to provide solutions and products that will lead the world towards a more sustainable future.
- In 2019, the company generated €44.5 billion in revenue, employing over 244,000 people worldwide.
- Continental’s strengths lie in their smart way of optimizing their manufacturing capabilities, while stile keeping a high-quality process.
- To do that, they have opted to move part of its production in developing countries in order to cut on their overall costs and consistently report high profit margins.
- This has been an important step, as the company manufactures over 10,000 different types of products.
- This has also allowed them to focus a lot more on research and development, investing over 7.6% (or €3.5 billion) of their total revenue in the development of innovative products.
Companies Using Predictive Analytics
- NTT Data is Japanese multinational system integration company that focuses on data intelligence, IoT, cyberscurity, IT optimization, and customer experience.
- The company has over 70,000 employees in more than 50 countries.
- NTT Data has partnered with many different automotive manufacturers, including Mazda and Toyota.
- In 2014, NTT Data developed a traceability platform that allowed Mazda to improve its manufacturing efficiency of its innovative SKYACTIV-G engine. Their partnership later led to the development of an AI solution in model-based development with the Mazda Co-Pilot Concept that aims to improve human-centered autonomous driving.
- NTT Data also recently partnered with the Japanese manufacturer Toyota to develop a cloud solution that will be able to store data from the company’s connected car fleet.
- The aim of the partnership is to develop the functions and services of Toyota’s Mobility Service Platform (MSPF) to increase the company’s software development capabilities and expand their global operations.
- The MSPF platform will collect data from millions of cars in 7 different regions.
- Stefanini is a multinational company that has more than 30 years of experience in digital innovation.
- The company focuses primarily on automation, cloud, Internet of Things (IoT) and user experience (UX).
- Stefanini has developed specific smart driving solutions that aim to facilitate a safer and easier transportation experience through the implementation of smart grids, signs, parking lots, and street lights.
- At the end of 2019, Toyota partnered with Stefanini with the aim to develop a predictive data analytics solution that can aggregate data from different sources.
- By developing a new AI-powered analytics platform, Toyota will be able to promote the development and management of some of its most innovative technologies, such as connected cars and sensors.
- KDDI is one of the biggest telecommunications providers in Japan.
- However, they also heavily focus on IT solutions such as data analytics, IoT, cloud solutions, and cybersecurity.
- KDDI also features a specialized software specifically designed for vehicle management and optimization.
- In November 2020, Toyota announced that it will be continuing its partnership with KDDI to develop a global telecommunication network for the proper data share between cars in different cities and continents as well as the creation of a management system that will increase the safety of connected cars.
- The two companies have been partners since 2002. In 2016, they started focusing more on the development of technology applications for connected cars.
- They built a “global communications platform, independent of existing roaming services, to ensure stable high-quality telecommunications around the globe between vehicle communications devices and cloud services.”