The Growing Connected Car Market in Italy

13 Jun 2023 | 2 min read

The connected car market in Italy is experiencing remarkable growth, driven by advancements in technology and the increasing demand for connected services. This article examines the market data and trends surrounding connected cars and Advanced Driver Assistance Systems (ADAS) in Italy, shedding light on the substantial growth witnessed in recent years.

A quick look at numbers

The market for connected cars and ADAS in Italy has witnessed significant expansion over the past few years. Just think that in 2022 the Connected Car & Mobility market in Italy reached EUR 2.5 billion, +16% compared to 2021.

Here is a breakdown of the market size in billions of euros (mld):

2017: 0.81 mld
2018: 1.07 mld
2019: 1.21 mld
2020: 1.18 mld + 0.6 mld (ADAS) = 1.78 mld
2021: 1.28 mld + 0.64 mld (ADAS) = 1.92 mld
2022: 2,5 mld (+16%) + 0.74 mld (ADAS) = 3,24 mld

Connected Cars in Italy

Italy has seen a remarkable adoption rate of connected cars. In 2021 out of the total circulating fleet of 39.8 million vehicles, approximately 47% (18.4 million) are connected, showcasing a 2% increase compared to 2020. The connectivity technologies employed by these vehicles are of different types, as follow:

- GPS/GPRS Boxes: 54% of connected vehicles (+4% compared to 2021)
- Bluetooth: 27% of connected vehicles (+2% compared to 2020)
- SIM-Based Connectivity: 19% of connected vehicles (+21% compared to 2021)

Consumer Demand and Services

Italian consumers have shown a keen interest in additional connected car services. The total number of connected car services in Italy has reached 400 million, representing an 18% increase from 2020. As a result of researches:

52% of consumers are interested in additional services.
75% of consumers are willing to pay extra for additional services.
54% of consumers require roadside assistance services in case of breakdown.
49% of consumers require rescue services in case of accidents.
47% of consumers seek predictive maintenance services.

Survey Results

According to a recent CAWI survey conducted by the Osservatorio Connected Cars and Mobility in collaboration with Doxa in January 2023, 52% of consumers own a smart car with associated connectivity services. The most commonly used services are:

17%: Roadside assistance in case of vehicle breakdown.
15%: Dispatch of rescue services in case of accidents.
14%: Predictive maintenance to prevent breakdowns.
13%: Activation of dedicated call centers in emergencies.

In addition, among those who plan to buy a connected car in the future, as many as 75% are willing to pay an additional price for smart features. That’s not all: One in three consumers would only do so after a trial period, while one in four would pay for everything right away.

This is due to the fact that people are becoming increasingly aware of the smart features inherent in vehicles for two main reasons:

In Italy and also all over the world, there is increasing awareness of the sphere of connectivity and how technology can boost services in the automotive market.
People are starting to experience the first smart features, and they realize how much these enhance and facilitate their experience as drivers. The first smart features could be trivially traced back to voice commands, which while being something extremely simple, makes a difference in the driving experience. And if such a smart feature nonetheless gives its results, let alone all those features that, for example, provide greater security to the user or even just open and close the car without the need for keys.

Revenue and Data Management

The management of data cars and infrastructure plays a significant role in the market. The revenue generated from the sale of services related to connected cars and ADAS is expected to reach 480 million euros in 2023.