Connected Car Market in U.S. to Grow Massively in Coming Years

Posted May 27, 2022 by PuneetShah

Increasing Occurrence of Road Accidents Fueling Connected Car Demand in U.S.
The rising focus on greater vehicle safety and security, on account of the growing prevalence of road accidents, is one of the major factors driving the demand for connected cars in the U.S. According to the U.S Department of Transportation’s National Highway Traffic Safety Administration (NHTSA), around 38,680 people lost their lives because of road accidents in the country in 2020. This was the largest reported number of casualties since 2007 and represented an increment of nearly 7.2% from the number of casualties reported in 2019.

Owing to the aforementioned reason, greater vehicle safety has become a priority area for end users, the government, and original equipment manufacturers (OEMs). As a result, many OEMs are increasingly integrating advanced driver assistance systems (ADAS) such as lane assist and automatic braking in their offerings in order to improve the safety of the vehicle as well as the driving experience. Moreover, these technologies assist in reducing traffic rule violations, which are majorly responsible for the escalating incidence of road crashes in the country.

Furthermore, the NHTSA is working closely with various players operating in the U.S. connected car market for raising public awareness about the benefits of ADAS technologies, which is also predicted to fuel the market at a CAGR of 20.8% from 2018 to 2023. Additionally, the value of the market is expected to rise from 12,354.8 million in 2017 to $37,350.1 million by 2023. Fleet manager, OEM services, processors, sensors, aftermarket services, and wireless and cellular modules are the major products and services currently being provided to connected car owners in the country.

Out of these, the demand for fleet manager services was found to be the highest in the past years, due to the large-scale incorporation of connected car technologies, especially the tracking of automobiles in the fleet by fleet manager. These technologies assist fleet managers in tracking the condition of the vehicle and conduct proper vehicle maintenance before the occurrence of serious accidents. 3G, 2G, and 4G/LTE are the most widely adopted technologies in connected cars. Amongst these, the popularity of the 4G/LTE technology is predicted to rise sharply in the coming years.

This technology allows consumers to download files over a wireless network and also offers improved voice quality, higher bandwidth, and enhanced navigation and provides greater ease in using social networks, IM, video calling, media streaming. The major trend currently being witnessed in the U.S. connected car market is the advent of the autonomous vehicle (AV) technology. The commercial incorporation of this technology in cars is picking up pace, primarily because of its ability to massively improve the safety of the vehicle.

Hence, it is safe to say that the demand for connected cars will surge in the U.S. in the coming years, mainly because of the growing requirement for greater vehicle safety, better in-vehicle connectivity, and improved driving experience, on account of the rising incidence of road accidents in the country.
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Tags connected car market , connected car market 2022 , connected car market in us , connected car market usa , demand for us connected car market , us connected car market , us connected car market share
Last Updated May 27, 2022