The concept of connected cars has fundamentally changed how we perceive and engage with our automobiles. These vehicles, equipped with telematic tools and capable of connecting to the internet and other devices, are poised to play a major role in both our daily lives and transportation systems.
As the decade draws to a close, it’s evident that the number of connected cars is rising at an unprecedented rate, drastically altering the European automotive market.
Shift from Vision to Reality
Connected cars are not just a futuristic vision; they are quickly becoming an imminent reality. In 2016, connected vehicles held a modest 7.3% market share in Europe. By 2025, this number is projected to skyrocket to 39.8%. This remarkable growth reflects a broader trend within the automotive industry geared towards enhanced connectivity and digital integration.
According to a comprehensive study by the Autopromotec Observatory, powered by insights from Roland Berger, nearly 70% of cars on European roads will be connected by 2025. This figure far exceeds previous estimates and significantly surpasses the 2019 prediction of 41%.
Europe is rapidly integrating 5G into connected cars to facilitate real-time communication between vehicles, infrastructure, and other road users. A study from IEEE Xplore highlighted how 5G enables faster data transfer and reduces latency, allowing connected cars to share information about road conditions, traffic, and hazards, improving safety and efficiency. This technology underpins projects like the 5G-CARMEN initiative, which tests cross-border 5G corridors in Italy, Austria, and Germany.
The European Commission’s Digital Strategy emphasizes the importance of secure data exchange between connected cars and the broader digital economy. The Gaia-X project is working on developing cloud-based data-sharing platforms with a focus on trust and data sovereignty, ensuring that the data exchanged between connected cars and various systems remains secure and complies with stringent GDPR regulations.
Leading European automakers like Volkswagen and BMW are heavily investing in combining electric vehicle (EV) technologies with connected car systems. A case study titled “Transport Research Part A: Policy and Practice” revealed how integrating autonomous features in electric vehicles can help manage energy efficiency, reduce emissions, and enhance mobility. Germany and France have been prominent in piloting autonomous EV projects in urban areas.
Europe is building smart infrastructure to support the widespread deployment of connected cars. Initiatives like C-Roads brings together various EU member states to establish a coordinated deployment of Cooperative Intelligent Transport Systems (C-ITS). According to a Journal of Traffic and Transportation Engineering study, these systems, which include smart traffic lights and digital signage, have been proven to reduce congestion and improve traffic flow. Furthermore, connected car technologies are integral to MaaS platforms, allowing seamless integration with public transportation networks.
The European Union is setting ambitious sustainability targets, pushing for the decarbonization of transportation. Research published in Sustainable Cities and Society highlighted the role of connected cars in reducing emissions through optimized route planning and fuel-efficient driving patterns. The EU’s Green Deal and the Fit for 55 package also provides a strong policy framework that supports the integration of connected cars as part of Europe’s sustainable mobility future.
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Drivers of Growth
The rise in connected cars is driven by two key factors: the growing prevalence of natively connected vehicles and the expanding market for retrofit solutions. Natively connected cars, equipped with factory-installed connectivity systems, offer seamless technological integration right from the assembly line.
In 2016, these vehicles made up 7.3% of the market. By the end of 2019, their share had surged to 17.4%, and is anticipated to eventually reach 39.8% by 2025. This represents a remarkable increase over a decade, underscoring the swift pace of technological advancement and rising consumer adoption.
In parallel, retrofit solutions—vehicles that gain connectivity through aftermarket components—are also experiencing significant growth. These solutions enable older models to integrate modern telematics, bridging the gap between existing vehicles and the latest technological advancements. In 2016, retrofit solutions comprised 6.3% of the market and are expected to stabilize around 30% by 2025. This growth highlights the flexibility and innovation within the aftermarket sector, allowing a broader range of vehicles to benefit from connected technology.
The transformative impact of connected cars extends beyond mere market statistics. These vehicles are redefining the automotive experience, offering enhanced safety, convenience, and efficiency. They facilitate real-time communication with road infrastructure, other vehicles, and mobile devices, enabling features such as advanced driver-assistance systems (ADAS), real-time traffic updates, and predictive maintenance. This interconnectedness not only improves the driving experience but also contributes to greater road safety and environmental sustainability.
Also Read: The Quiet Revolution: Unveiling the Rise of the Private 5G Market in Europe
Challenges Ahead for the Aftermarket and Repair Sectors
However, the rise of connected cars also introduces new challenges, particularly for the aftermarket and repair sectors. Garages and repair shops will need to adapt to the growing complexity of vehicle systems and the influx of data generated by these advanced technologies. The shift towards connected cars necessitates an upskilling of technicians, who must become proficient in new diagnostic tools, software, and repair techniques. Additionally, garages will need to stay abreast of evolving standards and regulations related to vehicle connectivity and data privacy.
To meet these challenges, the automotive repair industry will have to embrace innovative solutions and technologies. This includes investing in advanced diagnostic equipment, developing expertise in data analysis, and adopting new repair methodologies. The ability to efficiently service and repair connected cars will be crucial for maintaining vehicle performance and ensuring customer satisfaction in a rapidly evolving market.
The rise of connected cars represents a notable moment in the automotive industry. The dramatic increase in market share, driven by both natively connected vehicles and retrofit solutions, signals a profound transformation in how we interact with our vehicles.
As we move towards a future where nearly 70% of cars on European roads will be connected, the industry must prepare for the accompanying shifts in repair and service practices. Embracing this change will be essential for stakeholders across the automotive spectrum—from manufacturers to repair shops—as they navigate the exciting and challenging landscape of connected mobility.
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