Europe Connected Car Market

Europe Connected Car Market Size (2024 to 2029)

The Europe connected car market size is predicted to be reach USD 42.6 billion by 2029 from USD 30.36 billion in 2024, growing at a CAGR of 7.01% from 2024 to 2029.

The connected vehicle trend is emerging, in which European car manufacturers and automotive suppliers are developing several relevant solutions. Based on connectivity, the demand for integrated solutions, linked solutions, and others for connected cars has increased over the years. Likewise, the use of telematics and fleet management solutions for connected utility vehicles has expanded.

Car manufacturers are focusing heavily on providing connectivity solutions in their vehicles to increase their car sales due to the growing need for connectivity. In addition, the increased willingness of consumers to stay connected to the outside world, even when traveling, encourages the adoption of connected cars worldwide. Also, integrating connectivity solutions into the vehicle has become a top priority for automakers, as consumers expect their vehicles to perform tasks like computers and smartphones.

The multiple connectivity solutions integrated into modern cars require Internet service to perform their respective functions. One of these connectivity solutions is used to provide an Internet connection to the driver and passengers traveling in the vehicle. By using a smartphone, modem, or connectivity device, an access point can be created in the car to provide Internet access to all devices in the vehicle. As a result, the growing trend in connectivity solutions is driving the connected car market.

The demand for a connected driving experience is increasing rapidly in this region. Major automakers and OEMs are working to make this a reality very soon. Safety-related regulatory initiatives will have a decisive effect on the adoption of OEM telematics across Europe. The growing demand for electric vehicles by European consumers plays a crucial role in boosting the market for connected cars. Besides, the market is expected to gain strength due to the widespread adoption of mobile and wireless technologies. Some governments within the EU are introducing various vehicle safety regulations and initiatives, which could be a positive move for manufacturers and dealers of connected cars. In addition, the availability of advanced telecommunications and road infrastructure will also continue to fuel the European connected car market.

OEMs in Europe face challenges in the form of rising costs, extended supply chains, more compact vehicles, growing customer demand, and the need for unprecedented manufacturing flexibility.

REPORT COVERAGE

This research report on the European connected car market has been segmented and sub-segmented into the following categories.

Europe Connected Car Market Analysis By Service

• Fleet Management
• Driver Assistance
• Entertainment  
• Safety & Security
• Autonomous Driving

The fleet management segment is ruling with the dominant share of the market. Fleet management is an innovative technology that helps locate or track the movement of other vehicles and reports driver behavior within a fleet. The driver assistance segment is set to have the fastest growth rate during the forecast period. Driver assistance service in the connected cars helps the drivers stay safe in an emergency by providing lane departure warnings, adaptive cruise control, and automatic emergency braking. The safety and security segment is likely to have the dominant growth rate in the future period. The growing prominence of adopting the high technological advancements in the automotive industry is to showcase growth opportunities for the safety and security segment’s share in the market. 

Europe Connected Car Market Analysis By Technology

• 2G
• 3G
• 4G/LTE

The 4G/LTE segment holds a significant share of the Europe-connected car market. High-speed internet connectivity will help the automotive industry deliver advanced features in connected cars as they are equipped with internet connectivity along with sensors and communication devices. The launch of 4G wireless technology in connected car solutions enabled consumers to seek the best in cloud-based applications and access the network at high speed. Audi was the first automaker to adopt the 4GLTE Wi-Fi hotspot access. Other companies were also utilizing the 4G LTE technology services with varied ranges and gaining huge profits by enabling advanced features. Top companies are seeing a huge surge in the sales of connected cars with the launch of various features using 4G technology that build efficiency and scalability. 

Europe Connected Car Market Analysis By End-User

• OEMs
• Aftermarket

The OEM segment is set to have a prominent share of the market. OEMs come up with different strategies for offering the packaging and commercialization of connected cars. Original equipment manufacturers always check up on the connectivity services and deliver high-quality solutions for the customers. The aftermarket segment is accounted for for maintaining the constant growth rate during the forecast period. Penetration of advanced technologies in every platform enables the user to find a way to avail themselves of effective services. With the launch of new applications in the smartphone, the connected car user can avail of various features such as vehicle service, emergency assistance, parts, and others with ease.

Europe Connected Car Market Analysis By Country

• UK
• France
• Spain
• Germany
• Italy
• Russia
• Sweden
• Denmark
• Switzerland
• Netherlands
• Turkey
• Czech Republic
• Rest of Europe

Europe has always been very supportive of promoting connected car technology. European CEN and ETSI have established specific standards for cooperative information transport systems (ITS), in line with the European Commission's request for safer, more efficient, and more sustainable transport. The latest standards oblige manufacturers to equip each car model with a GPS and 3G/4G connectivity. Also, the technology is expected to interconnect drivers with automakers, dealerships, and auto repair shops, which is a significant advance for the connected car market in Europe.

KEY MARKET PLAYERS

Airbiquity Inc., Aptiv PLC, Autoliv, Continental AG, Denso, NXP Semiconductors, Robert Bosch GmbH, TomTom, WirelessCar, and ZF Friedrichshafen are some of the notable companies in the Europe connected car market. These companies have secure global distribution networks and offer a wide range of products. They adopt strategies such as new product development, collaborations, and contracts and agreements to maintain their market position.

RECENT HAPPENINGS IN THE EUROPE CAR CONNECTED MARKET

• In September 2019, Continental launched Cosma Solution, a digital door opener for Honda E, which is an access solution based on smartphones that will allow Honda owners to open their vehicles or share the key with other people using only their smartphone. With the My Honda + application, customers can unlock the car remotely via Bluetooth Low Energy (BLE). The new Honda will be available in 2020 Europe.
• In July 2019, Bosch developed a new software service connected to the cloud to manage and monitor the battery life of electric vehicles. The new connectivity would allow companies to monitor and manage battery status remotely to reduce battery wear by up to 20%.
• In June 2019, Airbiquity partnered with Wind River, a leader in the provision of IoT software for critical infrastructure, to develop an end-to-end software lifecycle management solution for connected and autonomous vehicles, extending from the car to the cloud. The solution would allow secure and intelligent OTA software updates and data management.