Car as a Connected L

OEMs can earn up to $1,600 per vehicle annually by 2035 across the vehicle’s lifetime by offering advanced connectivity features such as AI led interactive digital assistants, autonomous features, safety & security, connected home, connected health, connected  energy, and connected aftermarket services. The total market for connected living services is estimated to grow from  $8 Billion in 2023 to more than $1.5 Trillion by 2035, at the CAGR of 54.5%.

The connected car is all about the customer experience and how easily & effectively can customers interact with vehicle. Customers, especially the GenZ, are willing to pay a premium for the smart sensor and AI led unmatched in-car experiences services and seamless interaction with the outside world from within the car. Customers are becoming more brand agnostics with advanced connectivity levels and

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Market Dynamics:

Driver: Advanced Technologies & Customer Propensity to Adopt

Almost every OEM has launched a separate division to exploit the potential of connected cars. Stellantis, through its Dare Forward strategy, expects to have 34 billion connected vehicles that will bring in an additional EUR 20 Bn in revenue by 2030, while GM and Ford expect to have ~$20 bn in revenue from connected vehicles by 2030. Key pillars include subscriptions from connected living services, features on demand, and data as a service. VW’s strategic framework for the future of connected cars is hinged upon architecture, battery & charging, software and mobility. Through its recent Arc Strategy, Nissan’s long term focus is undertaking strategic cross industry partnerships (software and product driven), new revenue streams and differentiated innovations. Hyundai and Renault (BeyonCa) are focusing on in-car health.

Restraint: Cost of Technology & Pricing Models

OEMs need to invest in connected living technologies and an extensive stakeholder ecosystem. Additionally, some OEMs such as Toyota, GM, VW, and Tesla offer services as integrated packages, where each package consists of a range of features across different segments. Mercedes Benz and BMW,  on the other hand, offer services on a piecemeal basis – every cluster of service has a specific cost and customers can choose which clusters of service they want access to. Given the nascency of the market, arriving at the optimal packages for customers at effective prices will be critical for gaining market share.

Opportunity: Greenfield Market

OEMs stand to gain further through developing competencies in the wider automotive ecosystem such as energy management services and connected insurance. Tesla, Hyundai, GM, and Ford are not just selling EVs but the entire spectrum of services such as renewable energy generation, energy storage, V2G technology, and energy usage optimization required for energy independence. Connected insurance is yet another revenue generating service for OEMs by reducing insurance premiums paid by customers and maximizing gains for insurance companies by minimizing wear & tear. Data monetization partnerships with various stakeholders such as cities, utility companies, automotive workshops, advertising and others are some of the other revenue generating streams for OEMs. Several other revenue streams could emerge from a single connected car.

Challenge:Competitive Market

New age OEMs are potentially better positioned to capture the connected living market, especially the EV market, given their streamlined operations as opposed to legacy OEMs with established processes. Furthermore, Xiaomi’s entry into connected vehicle space re-establishes the potential of connected cars. The imminent entry of technology players implies competition to the automakers given their deep pockets and expertise in connectivity technology.

Connected Cars will Offer Connected Home Services

Various home functionalities that are expected to be controlled from the car and vice versa. While on the road, the car creates a refrigerator stock update and notifies the owner or orders it online. The car checks on the automatic locking system and places an emergency video call to the owner in the event of a visitor or potential hazard. The home heating system can be turned on before the owners return from work. What is important here is the integration of these home systems with the car’s operating system.

What Does Connected Work Mean?

Similar to workflow management connected work services offered include work diary management, journey planning & auto navigation, video calls that include transcription, and others. Future solutions include CO2 tracking, connected platforms for sustainable commuting, and integrated mobility budget solutions. This can have significant impact on corporate fleet management services.

Connected City Services

OEMs can leverage the data from its connected car and customers by not only selling subscription services for in-car tolling and taxation, energy services, and parking services to customers but also by selling the data to critical city service such as traffic systems, environmental regulators, emergency services, urban planners, and insurance service providers.

Key Market Players

The car as a connected living ecosystem market is led by OEMs such as Mercedes Benz, BMW, VW, Stellantis, Hyundai, Toyota, GM, Ford, Nio, Xpeng, and others.

Get online access to the report on the World's First Market Intelligence Cloud

• Easy to Download Historical Data & Forecast Numbers
• Company Analysis Dashboard for high growth potential opportunities
• Research Analyst Access for customization & queries
• Competitor Analysis with Interactive dashboard
• Latest News, Updates & Trend analysis

Request Sample

Click on image to enlarge

Scope of the Report

This research report categorizes the connected car features based on connected living solutions.

Based on Connected Living Solutions:

• In-car connectivity
• Connected Energy
• Connected Aftermarket
• Connected Health
• Connected Work
• Others

Recent Developments

• In January 2024, Mercedes Benz unveiled its AI powered MBUX Virtual Assistant
• In January 2024, Stellantis acquired Artificial Intelligence Technologies and IP from CloudMade for advanced connectivity features
• In January 2024, GM introduced OnStar connectivity features in Saudi Arabia

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst