Connected car M2M connections and services: Key market research findings
- Increased safety and security awareness drives market growth
- Safety and driver assistance account for majority share of the market
- Key vendors—Audi Connect, BMW, Delphi, Ford, and Toyota
Technavio’s market research analysts expect the connected car M2M connections and services market in SEA to reach almost $5 billion in revenue by 2020. Increasing awareness about safety and security among vehicle drivers is the primary growth factor of this market. Safety and security features in the connected car segment include the ability to contact emergency services, the capability to track stolen vehicles, and vehicle diagnostics and directions. Currently, Malaysia dominates the connected car M2M connections and services market in SEA by occupying around 39% of the market space. Increased execution of the Internet of things (IoT) is expected to contribute to growth in the connected car M2M connections and services market in Malaysia by 2020.
The new market research report from Technavio presents a breakdown and analysis of the connected car M2M connections and services segments based on application.
“The latest trend in the market is the increasing preference for smart parking with embedded sensors. Smart parking efficiently reduces traffic congestion in cities with high population density. These systems make use of sensors that are deployed in the center of the parking area. Data with respect to aspects such as the number of standby vehicles and the number of vehicles in line to acquire parking space is gathered from these sensors. This data is then used to analyze and process the traffic flow and notify the passengers with the relevant alerts,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
During 2015, the safety and driver assistance segment accounted for around 30% of the market share to dominate the connected car M2M connections and services market in SEA. The majority share of the connected vehicle services revenue is generated from the driver assistance application owing to the growing demand for safety, convenience, and comfort. Vehicle manufacturers are increasingly adopting secured cloud technologies to ensure network security and reliable information transfer. Night vision systems, drowsiness monitoring systems, superior vehicle performance, and fuel-efficiency are some of the factors that will boost the growth of the safety and driver assistance market in SEA during the forecast period.
The key vendors in the market include Audi Connect, BMW, Delphi, Ford, and Toyota. The connected car M2M connections and services market in SEA is highly fragmented owing to the presence of several well-established international, regional, and local suppliers. With telecommunications companies, telematics providers, automobile companies, chip makers, and technology providers exploring the market, the vendor competition is likely to intensify in the coming years.
A more detailed analysis is available in the Technavio report, Connected Car M2M Connections and Services Market in SEA.
We can customize reports by other regions and specific segments upon request.
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