South America, Middle East & Africa Connected Car Market Outlook, 2029

The South America, Middle East, and Africa (SAMEA) region is witnessing a profound transformation in the automotive industry with the rapid adoption and advancement of connected car technologies. The convergence of telecommunications, computing, and automotive engineering has paved the way for a new era of mobility, characterised by intelligent, networked vehicles that offer enhanced safety, convenience, and entertainment features. The SAMEA connected car market encompasses a diverse landscape of countries with unique socio-economic conditions, regulatory frameworks, and consumer preferences but is united by a shared enthusiasm for embracing cutting-edge automotive innovations.

In recent years, the region has emerged as a significant growth hub for connected car technologies, driven by factors such as increasing urbanisation, rising disposable incomes, growing demand for advanced safety solutions, and a burgeoning middle class with a penchant for tech-savvy vehicles. Initiatives to encourage the use of linked cars are being carried out by governments throughout the SAMEA area. This covers laws requiring specific safety measures to be installed in cars as well as financial incentives for eco-friendly automobiles, including tax rebates and subsidies. In SAMEA nations, possibilities are being created for the adoption of connected automobile technology through infrastructure development activities like the introduction of 5G networks and smart city projects. In order to support the connection needs of connected cars and enable features like over-the-air upgrades, real-time data interchange, and vehicle-to-vehicle contact, advanced telecommunications infrastructure is necessary.

According to the research report "South America and Middle East and Africa (SAMEA) Connected Car Market Outlook, 2029,", the South America and Middle East and Africa (SAMEA) Connected Car market is projected to add more than USD 2 Billion from 2024 to 2029. Advanced safety features like automated emergency braking, collision avoidance systems, and vehicle-to-vehicle communication are made possible by connected automobile technology, and they improve both driver and passenger safety. There is a rising demand for automobiles with these safety-enhancing features in areas like the Middle East and Africa, where road safety is a major concern.

Traffic congestion is a common issue in many urban areas across South America, the Middle East, and Africa. Connected car technologies, such as real-time traffic updates, navigation assistance, and adaptive cruise control, help drivers navigate congested roads more efficiently, reducing travel times and fuel consumption. Consumers in the SAMEA region are increasingly seeking vehicles that offer seamless connectivity and integration with their digital lifestyles. Connected car features such as in-car infotainment systems, smartphone integration, and remote vehicle monitoring and control appeal to tech-savvy consumers who value convenience and connectivity on the go. The need for personal mobility is being driven by the fast-rising middle class and urbanisation in many regions of Africa, the Middle East, and South America. The demand for connected automobiles as status symbols and lifestyle accessories is predicted to increase as more people migrate into cities and acquire more disposable income.

Market Drivers

• Urbanisation and Traffic Congestion: Rapid urbanisation and increasing traffic congestion in major cities across SAMEA are driving the demand for connected car technologies that can help alleviate congestion and improve traffic management. Features such as real-time traffic updates, navigation assistance, and predictive maintenance solutions are becoming increasingly important for consumers navigating urban environments.
• Consumer Demand for Connectivity: Consumer demand for connectivity and convenience features in vehicles is fueling the growth of the connected car market in SAMEA. Features such as in-car infotainment systems, smartphone integration, and remote vehicle monitoring appeal to tech-savvy consumers who value connectivity and seamless integration with their digital lifestyles.

Market Challenges

• Regulatory Complexity: The regulatory landscape for connected cars in SAMEA can be complex and fragmented, with varying regulations and standards across different countries and regions. Navigating regulatory requirements related to safety, emissions, data privacy, and cybersecurity can pose challenges for automakers and technology providers operating in the region.
• Consumer Awareness and Education: Many consumers in SAMEA may lack awareness and understanding of connected car technologies and their benefits. Educating consumers about the features, functionalities, and potential advantages of connected cars is essential for driving adoption and acceptance in the market.

Market Opportunity

• Emerging Markets: SAMEA countries represent emerging markets with significant growth potential for connected car technologies. As awareness of the benefits of connected cars increases and consumer preferences evolve, there is a growing opportunity for automotive manufacturers and technology providers to capture market share and establish a strong presence in these rapidly expanding markets.

Based on the technology, they are segmented into 4G/LTE, 3G, and 5G. In terms of connectivity, solutions are bifurcated into integrated, embedded, and tethered.

By comparison with other wireless technology generations, 5G delivers far more bandwidth. As a result, linked automobiles and infrastructure, such as traffic control systems and cloud-based services, can communicate more quickly and reliably. Because of this, linked automobiles have improved navigation, safety, and entertainment capabilities by being able to access and interpret massive volumes of data in real time. Furthermore, 5G technology serves as an enabler for emerging technologies such as artificial intelligence (AI), machine learning, and edge computing in the connected car ecosystem. These technologies rely on high-speed, low-latency connectivity to process and analyse large volumes of data in real time.

With 5G networks, connected cars can leverage AI algorithms for advanced driver assistance systems, predictive maintenance, and personalised user experiences. Further embedded as the connectivity solution types are growing in market, advanced Vehicle-to-Everything (V2X) communication is made possible by 5G technology, which permits real-time data transmission between automobiles and smart city systems, infrastructure, pedestrians, and other vehicles. This feature increases overall road safety, traffic flow, and situational awareness. Embedded connectivity refers to built-in connectivity features integrated directly into the vehicle's hardware. In South America, the Middle East, and Africa, the growing adoption of embedded connectivity in connected cars is driven by the increasing demand for seamless, always-on connectivity and the desire for integrated solutions that do not rely on external devices or tethered connections.

According to the report, applications are segmented into Driver Assistance, Safety, Infotainment, Telematics, Fleet Management (Vehicle), Mobility Management, and Others. In terms of the end user, they are segmented into OEMs and aftermarket.

In the region, driver assistance is the leading market. Because of the huge number of accidents and fatalities that occur on roads in many SAMEA nations, road safety is a major concern. With features like adaptive cruise control, lane departure warning, and collision avoidance, driver assistance systems help drivers drive more safely and reduce the chance of accidents. Rapid urbanisation in cities across South America, the Middle East, and Africa has led to increased traffic congestion and more complex driving environments. Driver assistance systems provide valuable support to drivers in navigating congested roads, identifying potential hazards, and maintaining safe distances from other vehicles.

Government regulations mandating the inclusion of certain safety features in vehicles, as well as incentives for automakers to incorporate advanced driver assistance technologies, are driving the adoption of driver assistance systems in the SAMEA region. These regulations aim to improve road safety and reduce the number of accidents on roadways. Furthermore, based on the end-user aftermarket, which significantly contributes to the market, owners of vehicles have the opportunity to add new features and capabilities to their cars through aftermarket connected car solutions. Customers customise their connected car experience to meet their unique needs by adding aftermarket solutions, such as improved safety features, remote vehicle monitoring, or navigation capabilities. The aftermarket sector of the connected car market in SAMEA is benefiting from increasing market maturity and consumer awareness of connected car technologies. As awareness grows and consumers become more familiar with the benefits of connected vehicles, there is a greater demand for aftermarket solutions to retrofit existing vehicles with these features.

Brazil and the UAE are playing a key role in the market. Brazil and the United Arab Emirates are important participants in the automobile sector since they have some of the biggest economies in their respective areas. These nations are perfect locations for the development and implementation of connected cars, as they have robust automotive industries with well-established manufacturing and technological infrastructure. Brazil and the UAE have been at the forefront of technological innovation in their regions, particularly in the automotive sector.

Both countries have invested in research and development initiatives to drive innovation in connected car technologies, fostering a conducive environment for automotive startups, research institutions, and technology companies to thrive. Both Brazil and the UAE have governments that prioritise innovation and technological advancement. They have implemented policies and initiatives to support the development and adoption of connected car technologies, including incentives for research and development, investment in infrastructure, and regulatory frameworks to facilitate testing and deployment of connected car solutions. Brazil and the UAE offer significant market potential for connected car solutions due to their large populations, high levels of urbanisation, and growing demand for automotive technologies. In Brazil, urban congestion and road safety concerns drive demand for connected car features, while in the UAE, the government's focus on smart city initiatives and innovation makes it an attractive market for connected car technologies.

The competitive landscape of the connected car market is dynamic and characterized by the presence of diverse players spanning automotive manufacturers, technology companies, telecommunications providers, and startups. These entities contribute to the development, integration, and proliferation of connected car technologies. Traditional automotive manufacturers play a significant role in the connected car market by integrating connectivity features directly into their vehicles. Companies such as General Motors, Ford, Toyota, and BMW are incorporating advanced infotainment systems, telematics, and driver assistance technologies into their vehicles. OEMs often collaborate with technology partners to enhance their connected car offerings.

Technology giants are increasingly entering the connected car space, leveraging their expertise in software, artificial intelligence, and cloud computing. Companies like Apple, Google (through Android Auto), and Microsoft are developing platforms and ecosystems that seamlessly integrate with connected vehicles, providing services such as voice-activated controls, navigation, and in-car entertainment. The success of connected cars relies heavily on robust communication networks. Telecommunications companies like Verizon, AT&T, and Vodafone play a crucial role by providing the necessary connectivity infrastructure, including 4G and 5G networks. These providers are pivotal in enabling real-time data transfer, over-the-air updates, and other connected car services. Automotive suppliers, often referred to as Tier 1 suppliers, contribute essential components and systems to connected cars. Companies like Bosch, Continental, and Denso specialize in providing sensors, communication modules, and other hardware crucial for the functioning of connected car technologies. These suppliers work closely with OEMs to integrate advanced systems seamlessly. The connected car market is also influenced by a multitude of startups and niche players specializing in specific aspects of connectivity. These include companies focusing on cybersecurity for connected vehicles (e.g., Argus Cyber Security), AI-powered navigation (e.g., WayRay), and advanced driver assistance systems (e.g., Mobileye). These players often bring innovation and agility to the market, contributing to its overall dynamism.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Connected Car market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Technology

• 4G/LTE
• 3G
• 5G

By Connectivity Solutions

• Integrated
• Embedded
• Tethered

By Application

• Driver Assistance
• Safety
• Infotainment
• Telematics
• Fleet Management (Vehicle)
• Mobility Management
• Others

By End Market

• Original Equipment Manufacturer (OEMs)
• Aftermarket

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases.

After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Connected Car industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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