6. August 2021 - Providentia Editors

Connected car services with great potential

Vehicle connectivity and automation is becoming increasingly important in the automotive industry. Particularly high growth potential is currently expected for connected car services, according to a recent study by IW Consult and Fraunhofer IAO.

While the worldwide production of vehicles is currently stagnating and even slightly declining, the demand for technologies for vehicle automation and connectivity will increase strongly in the coming years. To find out the extent to which these two areas will grow, researchers compared a baseline scenario with a mobility scenario. While more than 90 million vehicles are assumed for the baseline scenario, the Mobility-as-a-Service scenario (MaaS for short) has five million fewer, justified by the assumption that fewer vehicles will be needed overall as a result of new mobility services. In addition, this would lead to the use of higher-value vehicles for traffic, i.e., potentially better-connected and more highly automated vehicles.

How is traffic changing in Germany? It is clear that the combustion engine will become less and less important. But its market volume will still be slightly higher than that of electric cars by 2030.

Automation: Threefold increase in market volume

Like electric vehicles, the automation and connectivity of vehicles is becoming increasingly important. The market for automation is expected to grow from €91 billion at present to €267 billion in 2030, and the connectivity market is forecast to grow from €94 billion to €197 billion.

Automation: Threefold increase in market volume

Like electric vehicles, the automation and connectivity of vehicles is becoming increasingly important. The market for automation is expected to grow from €91 billion at present to €267 billion in 2030, and the connectivity market is forecast to grow from €94 billion to €197 billion.

Mobility scenario requires highly automated vehicles

The more mobility services are used on the road, the more important it will be for vehicles to be sophisticated and highly automated. Accordingly, higher levels of automation, such as Level 5, already play a certain role in the MaaS scenario in 2030.

Automation and connectivity catch up

Compared with the market for motors, the areas of automation and connectivity are growing more strongly. Nevertheless, they will still lag far behind in terms of total volume in 2030 (see graphic). Due to the high growth dynamics, however, it is worth taking a more detailed look at these two areas:

Automation and connectivity catch up

Compared with the market for motors, the areas of automation and connectivity are growing more strongly. Nevertheless, they will still lag far behind in terms of total volume in 2030 (see graphic). Due to the high growth dynamics, however, it is worth taking a more detailed look at these two areas:

Environment detection more and more in demand

Environment detection in particular is picking up speed in terms of market volume and, according to the scientists’ forecast, will grow by a factor of ten in the MaaS scenario (from €15.7 billion at present to €157.8 billion), and by a factor of six in the baseline scenario (to €96.4 billion). With regard to technologies for automation, the market potential for all the technologies mentioned will increase by at least a factor of two, regardless of the scenario.

Connected car services on the rise

Across both scenarios, it is clear that there is enormous potential in connected car services in the market segment of connectivity. While still in its infancy today (€4.4 billion), the market volume for connected services in both scenarios will grow to over €30 billion. One thing is clear: The future belongs to connectivity and automation.

The entire study “Auto-Cluster Bayern: Entwicklung und Zukunftsperspektiven” (in German) by IW Consult and Fraunhofer IAO is available for download here.

Connected car services on the rise

Across both scenarios, it is clear that there is enormous potential in connected car services in the market segment of connectivity. While still in its infancy today (€4.4 billion), the market volume for connected services in both scenarios will grow to over €30 billion. One thing is clear: The future belongs to connectivity and automation.

The entire study “Auto-Cluster Bayern: Entwicklung und Zukunftsperspektiven” (in German) by IW Consult and Fraunhofer IAO is available for download here.

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