As I slide into the driver’s seat of my newly delivered 2025 Kia Sorento PHEV SX-Prestige AWD, I’m struck by the array of screens and connectivity options surrounding me. Gone are the days of fumbling with a smartphone mount; now, my device seamlessly integrates with the car’s infotainment system through Apple CarPlay, alongside with Kia’s very own Kia Access app.
This personal experience mirrors a broader trend sweeping the automotive industry. By 2028, Insider Intelligence predicts that 84% of new vehicles sold in the United States will feature connected car technology. This isn’t just a statistic—it’s a glimpse into the automotive future.
The global connected car market is accelerating faster than a sports car on an open highway. Precedence Research estimates the market will reach a staggering $181.90 billion by 2034, growing at a 15.1% annual clip from 2024 to 2034.
This week, I used my phone’s voice assistant to pre-heat the 2025 Kia Sorento and turn on the kitchen lights before heading home from dinner. This kind of smart home integration, once the stuff of science fiction, is now becoming commonplace.
It’s these practical applications that are driving consumer demand and technological literacy. Not all analysts are in the fast lane when it comes to growth projections.
MarketsandMarkets offers a more conservative estimate of $26.4 billion by 2030, while ABI Research forecasts a steady 3.2% growth rate through 2034, reaching $52.9 billion.
The backbone of connected car technology is rapidly evolving. 5G networks promise to revolutionize vehicle-to-everything (V2X) communication. The 5G Automobile Association boldly claims that a robust 5G network could prevent over 60% of traffic accidents.
During a recent road trip through rural areas in the Sierra Nevada foothills of California, I experienced firsthand the limitations of current cellular networks. This is where satellite technology is stepping in, promising continuous connectivity even in the most remote locations.
Connected cars aren’t just about convenience; they’re about safety. A study published in PLoS One found that drivers in connected environments maintain safer distances during car-following and lane-changing maneuvers.
They’re also less likely to run yellow lights. I’ve noticed this in my own driving. With real-time traffic updates and advanced driver assistance systems, I find myself making more informed decisions on the road.
This does come with limitations and occasionally inaccurate data. Driving down a one-lane road through Land Park in Sacramento caused the vehicle to notify me I was driving the wrong way.
The connected car space is attracting major players from the tech world. Google and Ford have announced a six-year partnership to accelerate connected car advancements.
Apple’s secretive Project Titan and rumors of a partnership with Kia for electric car production hint at the tech giant’s automotive ambitions. For Apple enthusiasts, this could mean an even more seamless integration between their devices and future vehicles.
Despite the rosy outlook, the connected car industry faces its share of challenges. During a road trip, my car’s infotainment system decided this was the best time to perform a system update, causing a lot of frustration on my end as the driver. This experience highlighted the complexities of maintaining and updating these sophisticated systems.
As cars become more connected, they also become more vulnerable to cyber threats. Ensuring network security and addressing privacy concerns will be crucial as the industry evolves.
The proliferation of connected vehicles presents a significant challenge to the automotive industry: reconciling technological advancement with consumer privacy.
These sophisticated machines, replete with sensors and communication systems, amass substantial quantities of personal data, often without the full comprehension or explicit consent of drivers.
Research conducted by Cassie, a consent and preference management platform, indicates that 82% of connected car users are oblivious to the extent of data collection by their vehicles. This ignorance extends to data usage and sharing practices, with 79% of users uninformed about these processes.
The spectrum of collected data is extensive and frequently sensitive, encompassing location information, biometric data, driving behavior, and even in-car audio.
While this information facilitates vehicle performance optimization and personalized services, it simultaneously introduces potential privacy infringements and misuse.
Insurance providers could potentially leverage driving data to adjust premiums surreptitiously, while location data might be commoditized to advertisers for targeted marketing based on travel patterns. The risk of data breaches exacerbates these concerns, potentially exposing consumers’ movement and habit information.
The Federal Trade Commission (FTC) has acknowledged these issues, expressing intent to take action against illegal collection, use, and disclosure of personal data by automakers.
Addressing these concerns necessitates enhanced transparency and consumer education. Dealerships and manufacturers must assume responsibility for informing customers about data collection practices, usage, and privacy implications.
Providing options for consumers to limit data collection without compromising essential features is crucial. As the connected car data market expands, the industry must prioritize data protection and consumer privacy.
Striking a balance between connectivity benefits and personal information safeguarding is essential for maintaining consumer trust and guiding the future of connected vehicles responsibly.
The connected car revolution is more than just a trend—it’s a fundamental shift in how we interact with our vehicles. As someone who’s experienced this transformation firsthand, I can attest to its impact on daily life.
The coming years will likely see continued innovation, shaping not just the future of transportation, but our relationship with technology as a whole.
Sources:
Carzato. (2024). Connected Car Market Size to Hit USD 181.90 Billion by 2034. Retrieved from https://www.carzato.com/news/connected-car-market-size-to-hit-usd-181-90-billion-by-2034
Insider Intelligence. (2023). Licensed drivers to drive connected cars by 2028. eMarketer. Retrieved from https://www.emarketer.com/content/licensed-drivers-drive-connected-cars-2028
MarketsandMarkets. (2023). Connected Car Market worth $26.4 billion by 2030 – Exclusive Report by MarketsandMarkets™. PR Newswire. Retrieved from https://www.prnewswire.com/news-releases/connected-car-market-worth-26-4-billion-by-2030—exclusive-report-by-marketsandmarkets-301749008.html
Precedence Research. (2024). Connected Car Market Size to Hit USD 181.90 Billion by 2034. GlobeNewswire. Retrieved from https://www.globenewswire.com/news-release/2024/01/10/2807042/0/en/Connected-Car-Market-Size-to-Hit-USD-181-90-Billion-by-2034-Exclusive-Report-by-Precedence-Research.html
Technavio. (2023). Connected Car Market Size to Grow by USD 166.19 Billion from 2022 to 2027, Growth Driven by the Increasing Demand for Connected Cars – Technavio. PR Newswire. Retrieved from https://www.prnewswire.com/news-releases/connected-car-market-size-to-grow-by-usd-166-19-billion-from-2022-to-2027–growth-driven-by-the-increasing-demand-for-connected-cars—technavio-301740425.html
Wang, J., Wu, J., & Li, X. (2023). The impact of connected environments on driving behavior: A driving simulator study. PloS one, 18(1), e0280752. https://doi.org/10.1371/journal.pone.0280752
The Associated Press. (2023, September 6). Carmakers are failing the privacy test. Owners have little or no control over data collected. AP News. Retrieved from https://apnews.com/article/data-privacy-cars-data-collection-mozilla-foundation-c616f41983b6cbd62445da0e4962091d
Article Last Updated: December 12, 2024.
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Michael Kahn is the publisher of The Weekly Driver, serving as writer, photographer, and content creator. With a keen eye for storytelling and a passion for adventure, he specializes in uncovering the stories and experiences of automobile enthusiasts. Michael’s work is inspired by his love for off-the-beaten-path road trips, global exploration, and the pursuit of exceptional culinary experiences, all captured through the lens of a world traveler and automotive enthusiast.
