Japan Connected Car Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 9.3% from 2023 to 2033.
• The Japan Connected Car Market Size is Expected to Hold a Significant Share by 2033.

The Japan Connected Car Market Size is expected to hold a significant share by 2033, at a CAGR of 9.3% during the forecast period 2023 to 2033.

Market Overview

Connected cars are vehicles that have been provided with internet connectivity and advanced communication technology, allowing for the smooth interchange of information across different channels. Their objective is to improve vehicle performance, increase convenience to users, and enable better communication between the transportation system and its surroundings in order to prevent accidents and send notifications about available parking places. These vehicles also provide drivers with rapid traffic alerts and can contact emergency personnel in the event of an unforeseen occurrence. Furthermore, these alerts and signals help to improve overall traffic performance and road safety management, while also providing ideal driving comfort. Furthermore, the connected car industry's increasing digitalization and the significant R&D projects carried out by major participants in the market are additional factors driving market expansion. In addition, the implementation of stringent laws by governments in various Japan has prompted car manufacturers to design vehicles with ADAS features in response to growing concerns about passenger safety, hence helping market growth. Also, factors such as ongoing R&D efforts, rapid digitalization in the automotive industry, and the rise of self-driving trends are projected to create a positive market growth in Japan.

Report Coverage

This research report categorizes the market for Japan connected car market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan connected car market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan connected car market.

Driving Factors

The increased demand for in-vehicle safety solutions drives the connected car market in Japan. As an outcome, the widespread integration of connected automobiles with advanced driver assistance systems (ADAS) for obstacle mapping and anti-lock brake systems (ABS) to promote safe braking is expected to encourage a positive market outlook. Furthermore, the introduction of 5G connectivity, as well as the growing usage of artificial intelligence (AI) and machine-to-machine (M2M) communication across various vehicles, are positively impacting the industry. Simultaneously, continuing improvements in the production of advanced suspension systems are propelling the industry forward. The market's growth is further boosted by an increased predilection for luxury cars among people with large disposable incomes and the advent of trends connected to autonomous driving. Other factors driving market growth include growing digitalization in the automotive sector and considerable research and development (R&D) initiatives carried out by leading industry players.

Restraining Factors

A lack of IT and communication infrastructure in Japan, as well as delays in government regulations, can hamper the growth of the connected automobile market in these countries. In addition, as telecom service providers, industry actors may be subject to country-specific telecom legislation, such as legal intercept and in-country entity requirements. The interoperability of the various platforms and cross-border use cases must be discussed and regulated. The reliance on data networks creates the issue of net neutrality, in which internet service providers prioritize certain data transmissions.

Market Segment

• In 2023, the 5G segment accounted for the largest revenue share over the forecast period.

Based on the network type, the Japan connected car market is segmented into 3G, 4G, 5G, and satellite. Among these, the 5G segment has the largest revenue share over the forecast period. Telecommunications companies are developing enhanced 5G networks to boost communication in connected vehicles and other devices. The seamless 5G network can reduce road accidents by more than 56%. The satellite segment market is predicted to grow at a quick pace over the forecast period. Also,with the increased usage of sensors and the 5G technologies, AI will be critical in making sense of everything. Some autos now employ AI for Level 3 autonomous driving, but for the industry to reach Level 5, significant improvements to the vehicles and infrastructure are required.

• In 2023, the embedded segment accounted for the largest revenue share over the forecast period.

On the basis of technology, the Japan connected car market is segmented into embedded, integrated, and tethered. Among these, the embedded segment has the largest revenue share over the forecast period. This system allows for infinite data sharing and is less expensive than embedded and tethered systems. Also, the embedded market is the second-fastest growing area due to factors such as cost optimization of service plans and cloud computing.

• In 2023, the driver assistance mobility management segment is expected to hold the largest share of the Japan connected car market during the forecast period.          

Based on the services, the Japan connected car market is classified into telematics, infotainment, driver assistance mobility management and others. Among these, the driver assistance mobility management segment is expected to hold the largest share of the Japan connected car market during the forecast period. The driver assistance category is predicted to dominate the market due to its advanced system, which includes technologically advanced features like as adaptive cruise control, 360-degree camera, park assist, and others.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan connected car market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Honda Motor Company, Ltd.
• Isuzu Motors Ltd.
• Daihatsu Motor Co., Ltd.
• General Motors Company
• Hino Motors, Ltd.
• Mazda Motor Corporation
• Mitsubishi Motors Corporation
• Nissan Motor Co., Ltd.
• Suzuki Motor Corporation

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In January 2024, Honda presented a new electric vehicle series that will go on sale in 2026, along with a futuristic concept car, at the Consumer Electronics Show in Las Vegas.

Market Segment

This study forecasts revenue at regional, and country levels from 2022 to 2033. Spherical Insights has segmented the Japan connected car market based on the below-mentioned segments:

Japan Connected Car Market, By Network Type

• 3G
• 4G
• 5G
• Satellite

Japan Connected Car Market, By Technology

• Embedded
• Integrated
• Tethered

Japan Connected Car Market, By Services

• Telematics
• Infotainment
• Driver Assistance Mobility Management
• Others