The connected car market is projected to reach $US166B by 2025, from $US53.9B this year, thanks to a rise in consumer demand for connectivity solutions, among other things.
The other key factors that are contributing to this growth include a greater need for constant connectivity, higher dependency on technology, and an upsurge in the tech-savvy population, according to Research and Markets.
“However, lack of proper communication infrastructure in developing countries will restrict the connected car market in the coming years,” said the research company in a news release. Some of the automakers that offer levels of connectivity in their models include Ford, BMW, Audi, Volvo, Hyundai, and Toyota.
The North American connected car market is anticipated to register the fastest growth between 2020 and 2025. This comes thanks to relative economic stability in Canada and the U.S. (compared to some other countries), and a higher standard of living and disposable income. Infrastructure availability and supportive government policies also play an important role.
“As people have high standards of living and disposable income in these countries, they would like to spend more on safety and comfort features,” said Research and Markets. “The demand for self-driving cars in the U.S. is resulting in OEMs introducing advanced connected car technologies that are expected to drive the North American connected car solution and services market.”
Demand for connected car services in the aftermarket segment is also expected to grow significantly in the near future, due largely to technological advancements and higher demand for safety and comfort features.
