Market outlook of connected car M2M connections and services
Technavio’s market research analyst predicts the global connected car M2M services market to grow at a CAGR of over 30% while the connections market is expected to grow at a CAGR of over 28% during the forecast period. The growing awareness of safety and services among drivers is one of the primary reasons for the growth of the market. According to Technavio, around 75% of vehicle drivers consider safety and security as a vital feature of a connected car. Connected car M2M services enable emergency services, vehicle diagnostics, and assistance on vehicle theft tracking.
Another spectacular trend is the demand for in-car infotainment services, which is a major driver for the market. In the automotive industry, infotainment technology is among the fastest growing technologies. Consumers use infotainment services for news, entertainment like music, video, Internet, and gaming, and education such as e-learning. Most audio product manufacturers have been experiencing increased profits because of the rise in demand for in-car infotainment services.
Services segmentation of the connected car M2M connections and services market
- Safety and security
- Driver assistance
- On-drive management
- Vehicle management
- Other services
The safety and security segment dminated the market during 2015, with a market share of almost 35%. Nowadays, every car comes with inbuilt safety and security measures. Another trending factor is the demand for the vehicle to vehicle (V2V) communication technology in the US, which will drive the market towards the upward trajectory during the forecast period. V2V technology allows cars on the roads to automatically exchange relevant data and information.
Geographical segmentation of the connected car M2M connections and services market
Americas accounted for over 55% of the market share during 2015 and is expected to grow at a CAGR of almost 27% during the forecast period. The US contributed the majority of the revenue to the connected car M2M services market. The increased demand for in-car infotainment services, availability of the high-speed wireless network, awareness of safety and security services among consumers, and increased usage of advanced applications to manage vehicles are among the factors that drive the market.
Competitive landscape and key vendors
The connected health M2M connections and services market is highly competitive with vendors competing on the basis of price, quality, innovation, service, reputation, distribution, and promotion. The high vendor competition has also led to an increased number of mergers and acquisitions.
The leading vendors in the market are -
- General Motors
- Sierra Wireless
- Verizon Telematics.
Other prominent vendors in the market include telecommunication operators and automotive service and equipment providers. Telecommunication operators include AT&T, Bell Mobility, BT, China Mobile, Datora Telecom, Deutsche TeleKom, Ericsson, Everything Everywhere, KDDI, Orange, Sprint, Telefonica, Telenor, Vodacom, Vodafone. Automotive service and equipment providers include Airbiquity, Apple , Audi, Autonet Mobile, Axway, Broadcom, CalAmp, Daihatsu, Daimler, Delphi Automotive, Ford Motor, Garmin, Google, Harman International, HERE, Hyundai Motors, IBM, Intel, Intelligent Mechatronic Systems, IturanLuxoft Holdings, Mahindra, Masternaut, Microsoft, Nokia, Nuance Communications, OmniLink, Oracle, Porche, Qualcomm, RACO Wireless, Selftrack, Sony, Tata Consultancy Services, Tech Mahindra, Telit Communications, Tesla Motors, TomTom, Toyota Motors, Transatel, Viper, Virdata, Volvo, Wireless Car, Zhejiang Geely, and Zubie.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global connected car M2M connections and services market?
- What are the key market trends impacting the growth of the global connected car M2M connections and services market?
- What are the challenges to market growth?
- Who are the key vendors in the global connected car M2M connections and services market?
- What are the market opportunities and threats faced by the vendors in the global connected car M2M connections and services market?
- Trending factors influencing the market shares of the Americas, EMEA, and APAC.
- What are the key outcomes of the five forces analysis of the global connected car M2M connections and services market?