Connected automobiles allow car owners to engage with all connected devices inside and outside their vehicles, as well as maintain a safe distance between vehicles on the road. These vehicles also enable drivers to mechanically check the physical condition and performance of the vehicle. Connected automated driving can also be utilized to connect smartphones and other mobile devices to automobiles.
NEWARK, DE / ACCESSWIRE / December 2, 2024 / The Europe connected car market is poised for significant growth, with an estimated valuation of USD 15 billion in 2024, projected to surge to USD 65.3 billion by 2034. This remarkable expansion represents a robust CAGR of 15.8% during the forecast period. Connected cars, which utilize internet connectivity to offer seamless navigation, entertainment, and safety features, are revolutionizing the automotive industry in Europe.
A key driver for this growth is the increasing penetration of 5G networks, enabling faster and more reliable vehicle-to-everything (V2X) communication. With enhanced network capabilities, connected cars are becoming smarter, offering features like real-time traffic updates, predictive maintenance alerts, and advanced driver assistance systems (ADAS).
Government regulations promoting vehicle safety and the integration of eco-friendly solutions further bolster the market. Programs such as the European Union's "Vision Zero" initiative, aiming to reduce road fatalities, are propelling the adoption of connected car technologies.
Connected driving experiences are in high demand. Auto manufacturers and OEMs (original equipment manufacturers) are working towards implementing connected car technologies. Safety-related legislative actions will have a significant impact on OEM technology uptake across Europe. The increased demand for electric vehicles among European customers is critical to the growth of the market for linked automobiles. The industry is expected to grow due to the widespread adoption of wireless and mobile technologies.
Furthermore, the EU government is establishing different vehicle-related rules and regulations, which is a welcome step for connected car manufacturers and dealers. The availability of modern telecommunications and road infrastructure will also continue to stimulate the European automobile market. OEMs are focusing on strengthening the market.
5G Is Critical to The Growth of the Connected Car Market
The advancement of the 5 G-enabled automobiles is a crucial development of the connected car market over the forecast period. Technology provides a feature where car owners can communicate effectively with each other.
Fifth-generation wireless technology is expected to connect everything around us with an ultra-fast, fully responsive network. 5G will improve technologies like virtual reality, the Internet of Things (IoT), and artificial intelligence. Due to this, companies are focusing on the adoption and development of 5G in connected cars. and can manage vehicle speeds with a smart motor. Several uses of the 5G network implemented in cars indicate the growing demand for the connected car market. And also, the different prospects of vehicles' IoT as a technology for autonomous driving and vehicle security have risen with connected cars.
Key Takeaways from Market Study:
The Europe connected car market is forecasted to grow from USD 15 billion in 2024 to USD 65.3 billion in 2034.
Anticipated CAGR of 15.8% during the forecast period (2024-2034).
Rising adoption of 5G technology is enhancing connected car functionality.
Germany and France remain key markets, accounting for a significant share of the revenue.
Safety and regulatory frameworks are driving the integration of advanced driver assistance systems (ADAS).
"The Europe connected car market is at the forefront of automotive innovation. With rapid advancements in 5G and IoT technologies, connected cars are no longer a luxury but a necessity, enabling safer and smarter transportation solutions. As automakers embrace digital transformation, the region is set to lead the global connected car revolution." - opines Sudip Saha, managing director at Future Market Insights (FMI) analyst.
Country wise insights
Germany Will Continue to Be the Growth Epicentre for Connected Cars
Germany stood out among the countries of the European Union as the main support for the increasing demand for linked cars. Numerous businesses are collaborating with other market participants to create innovative technology for autonomous vehicles. The majority of autonomous vehicles use electric powertrains, which is advantageous for countries trying to meet their objectives to reduce their emission levels. New technologies, supported by governments to increase connected car sales, are fostering innovation in the connected and autonomous vehicle industries.
Due to the high cost of developing, testing, and producing driverless and autonomous vehicles in Germany, businesses are concentrating on enhancing their Research and Development through a variety of partnerships and agreements.
Connected Cars Demand in the United Kingdom Is Being Driven by Real-Time Data and Advance Technologies for the Seamless Development of Connected Cars
Leading connected car developers are getting funding from investment firms to make cybersecurity adoption in linked cars possible. This is included to ensure secure data transport. In order to provide a better driving experience, top automakers are also introducing new autonomous, linked automobiles.
The connected car market in the United Kingdom is expanding as a result of top companies operating there developing to offer better and more effective linked car services. Additionally, adding cutting-edge features like ADAS (advanced driver assistance systems)has allowed automakers to provide connected vehicle services, ultimately spurring industry expansion.
The expansion of the connected automobile market in the United Kingdom is being driven by increasing interest in real-time data-enabled solutions to enhance the operation of transportation systems as well as growing government attention to enhancing road safety.
The Automobile Industry in France Is Pivoting Towards New Vehicle Architectures and 5G Spectrum
The French transportation industry is shifting to data-based mobility, with automotive OEMs investing heavily in digital technologies and placing more focus on collaborating with solution providers in a range of fields, including security, connectivity, and software.
The main elements driving the development of the connected car market in France are rising public awareness of the importance of driving safety and a supportive legislative environment that encourages the commercialization of connected car applications.
Several car companies operating in France have developed connected services that will eventually support the expansion of the connected car market in the nation. Due to the cooperation of top connected vehicle firms and the implementation of the 5G network for connected cars, the market for connected cars is predicted to increase exponentially. Furthermore, wireless service providers are aiming to develop cutting-edge wireless platforms for connected cars, which is also anticipated to support the market's expansion.
Category wise Insights
Why the demand for the Vehicle-To-Vehicle (V2V) in Europe Connected Cars Market Has the Highest Market Share?
The Vehicle-to-Vehicle segment is expected to dominate the market during the forecast period. Technological advances are becoming more and more common in vehicle-to-vehicle (V2V) communication trends. Large companies involved in vehicle-to-vehicle communication focus on developing new technical solutions to strengthen their position.
Vehicle-to-vehicle communication can help reduce traffic congestion in large cities, improve road safety, and improve passenger comfort. The development of wireless technology and the increasing deployment of advanced devices such as sensors and GPS in V2V systems are expected to maintain the dominance of this segment during the forecast period.
Growing interested in traffic safety is expected to boost the growth of the vehicle-to-vehicle communication market in the future. V2V technology helps establish efficient traffic management and saves time for vehicle users. As cars communicate with their environment, information about road signs, traffic signs, traffic jams, and traffic diversions can help determine the best route between the starting point and destination.
Why the adoption of 5G connectivity in Europe Connected Cars Market is Increasing?
5G is an integral part of the transformation of the automotive industry, especially as it relates to connected cars, how automotive original equipment manufacturers (OEMs) design and build vehicles, how they perform on the road, and how they interact with customers? Mobile network providers are already providing these capabilities with the seamless integration of 5G.
Car vendors like Hyundai and MG Hector are implementing technologies to include internet connectivity within their vehicles and 5G connectivity can help these companies expand upon their solution offerings.
Key Companies & Market Share Insights:
Prominent players in the Europe connected car market include:
BMW Group
Daimler AG
Volkswagen Group
Renault Group
Stellantis N.V.
Continental AG
Robert Bosch GmbH
These companies are focusing on strategic partnerships, R&D investments, and product innovation to maintain a competitive edge in the market.
How Driver Assistance Is Driving the Growth of the Europe Connected Cars Market?
Driver assistance systems are designed not only to increase driver safety but also to provide a more comfortable and easier driving experience to the driver. Driver assistance systems consist of several components that perform some basic operations like lane assist, pre-crash systems, etc.
Advanced Driver Assistance Systems are passive and active safety electronic systems within a vehicle that uses advanced technology to assist the driver in eliminating human error during vehicle operation. It offers a variety of applications such as lane departure warning/correction, pedestrian detection/avoidance, automatic emergency braking traffic sign recognition, and blind spot detection.
Key market players are launching advanced driver assistance systems for highly automated vehicles such as connected cars, which evidently drive the growth of the Europe Connected Cars Market.
Due to these factors, Driver Assistance Segment had the larger market share of 28.2%.
How Passenger Cars Are Fuelling the Growth of the Europe Connected Cars Market?
Rising demand for comfort, convenience, and safety is driving the market for vehicles with advanced HMI (human-machine interface) capabilities, more connected technology, and the integration of advanced driver assistance system (ADAS) solutions. Growing demand for electric vehicles from European customers is playing a key role in boosting the market for connected driving experiences. The market is expected to gain strong traction due to the proliferation of mobile and wireless technologies.
An in-vehicle infotainment system is an interface between various parties, i.e., customers, Internet service providers, and companies that manufacture vehicles, home appliances, and electronics. Growing customer awareness of connected car services and an increasing willingness to pay for premium features are contributing to the growth of connected cars in the European market.
How Automotive OEMs Are Supporting the Growth of the Europe Connected Cars Market?
Increasing technological developments such as uninterrupted connectivity, cyber security, and the development of self-driving vehicles with integrated and highly secure software are expected to support OEM dominance over the forecast period. Moreover, increasing partnerships with key players to develop high-quality and cost-effective components is another reason driving the growth of the OEM segment.
Key Segments of Industry Report
By Communication Type:
The communication type segment includes Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-To-Pedestrian (V2P), and others.
By Application:
Driver assistance, infotainment, vehicle safety & security, telematics & navigation, and other applications are categorized in this segment.
By Connectivity Technology:
Based on the connectivity technology, the industry is divided into 3G, 4G LTE, 5G, and others.
By Vehicle Type:
Based on the vehicle type, the industry is bifurcated into passenger cars and commercial vehicles.
By End User:
Based on the end user, the industry is bifurcated into automotive OEMs and automotive aftermarket.
By Country:
United Kingdom, Germany, France, Spain, Italy, BENELUX, Russia, and the rest of Europe are covered in the report.
To Gain In-Depth Insights on Market, Browse Complete Report:
https://www.futuremarketinsights.com/reports/europe-connected-cars-market
Author by:
Sudip Saha is the managing director and co-founder at Future Market Insights, an award-winning market research and consulting firm. Sudip is committed to shaping the market research industry with credible solutions and constantly makes a buzz in the media with his thought leadership. His vast experience in market research and project management a consumer electronics will likely remain the leading end-use sector cross verticals in APAC, EMEA, and the Americas reflects his growth-oriented approach to clients.
He is a strong believer and proponent of innovation-based solutions, emphasizing customized solutions to meet one client's requirements at a time. His foresightedness and visionary approach recently got him recognized as the ‘Global Icon in Business Consulting' at the ET Inspiring Leaders Awards 2022.
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