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Connected car market to reach $141 billion, globally, by 2020 according to new research report

Automotive and Transportation Market Research

2G, 3G and 4G/LTE are the network technologies that are deployed for connectivity within the cars. Amongst these, 2G technology used for providing connectivity will gradually fade out, and will be replaced by the 3G and LTE technologies. Some of the prime reasons for this technological shift would be the rapidly changing telecommunication technology and the introduction of faster & reliable communication networks.

Connected Car Market Report, published by Allied Market Research, forecasts that the global market is expected to garner $141 Billion by 2020, registering a CAGR of 32.7% during the period 2014 - 2020.Integrated connectivity solutions segment is expected to emerge as a preferred connectivity solution for connected cars, surpassing embedded connectivity solutions segment in 2016.North America currently garners major market share and would maintain the position throughout the forecast period.

The availability of faster communication networks, advanced connectivity solutions and a user friendly interface should drive global connected car market.  an enhanced driving experience, offered by connected cars and favorable rules & regulations across numerous countries will fuel the market growth.

North America is a relatively mature market for connected cars, as it was amongst the first regions to adopt this new technology.

The European connected car market will foresee tremendous growth with the passing of Ecall regulations by the European Parliament. This rule mandates the installation of an Ecall System for every car in production from the year 2015.

The eCall system automatically alerts the nearest help service in case of an emergency. This system cuts the emergency service response time by 50% to 60%.

The European Union claims that mandating the eCall system could approximately save up to 2,500 lives every year. Following this, Russia and Brazil also look forward to implement a similar kind of legislation into their country.

This would also help in tracing cases of car thefts. A research undertaken by the US National Highway Traffic Safety Administration (NHTSA), states that the American government is also looking forward to mandate the use of M2M connectivity solutions into the vehicles.

In the years to come, Asia-Pacific should be a prominent automobile market for connected cars, owing to rising disposal incomes and a growing population of tech savvy youth in this region.

Reportwww.alliedmarketresearch.com/request-sample/153

Integrated, tethered and embedded are the network solutions used in connected cars. In 2013, embedded connectivity solutions led the market with a share of almost 40% of the global connected cars, followed by integrated and tethered connectivity.

However, the prevailing scenario should change by the year 2020, as integrated solutions would lead the market by accounting about 45% of the market share. Freedom of choice provided to the users to customize their connectivity device, data plans,.

according to their preference and stipulated budget in integrated solutions could be the main reason for this drastic change in its market share. Embedded connectivity solutions would give a tough competition to the integrated connectivity solutions in terms of revenue generation and would hold second position in the market due to its ability to function even in the absence of a mobile connection or a drained battery.

In embedded connected cars, the SIM or connectivity device is in built, enabling the system to send an SOS in case of an emergency.

Key findings of Connected Car Market:

  • 2G network technology will slowly fade out giving way to advanced telecommunication technology namely 3G and 4G
  • By 2020, integrated and embedded solutions will be amongst the most popular connectivity solutions in the connected car market and would together account for about 80% of the overall market
  • North America and Europe would prove to be the most lucrative markets in terms of revenue generation, whereas the Asia-Pacific market will grow fastest
  • Navigation and infotainment services together occupied almost 80% of the market share in 2013 and would maintain steady growth during the forecast period
  • Growing demand for connectivity solutions within the vehicle and the rising number of tech savvy youth are two prime factors that will drive the global connected cars market

Telefonica, Verizon, Harman, TomTom, AT&T Inc., Ford, BMW Audi and Mercedes Benz are the major market players that are profiled in the report. Collaboration and product launch are the prime corporate strategies adopted by these companies.

AT&T and Audi have entered into a collaboration to bring 4G LTE technology to their connected cars. With the connectivity service provided by AT&T, Audi's consumers could avail data plans at a reasonable price.

Many automakers are teaming up with software providers in order to improve their connected car services. BMWUSA, has collaborated with Apple Inc.

for software development solutions. AT&T is associated with 13 companies including LG, the South Korean giant, for R&D in the market of connected cars.

These collaborations account for stable product offerings where knowledge and technology are shared on a single platform.

Report at: www.alliedmarketresearch.com/knowledgetree
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Category: Market Research Publishers and RetailersCompany about: Allied Market Research is a global market research and business consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions”. AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market dom ...
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