Connected Car Market Trends in the Coming Years

Published : 2016-08-22

As ever more wireless connected cars foray in the market, numerous trends are becoming apparent. Here are few calculations regarding the Connected Car Market trends in the coming years:

The Connected Car Market to become vast, comprehensive, and international

Connected cars are now enhancing the machine-to-machine cosmos. According to market experts, there will be almost quarter-billion connected cars on the road by 2020, with new vehicles intensely growing the magnitudes of connected cars. Especially, guidelines necessitating emergency connectivity, or eCall, for new cars in Europe, are facilitating to boost the ecosystem. Further, the increase of vehicle connectivity will have associations across the foremost functional areas of automated driving, telematics, infotainment and mobility services.

Multiple radio access technologies to boost the market

Automotive makers are aspiring to assimilate an array of wireless technologies in their vehicles, from telematics-based connectivity to LTE, 2G and 3G for light, and Wi-Fi for heavy infotainment. Although LTE connectivity is estimated to mature most rapidly, there are likely to be usage cases for 2G and 3G in addition to demand for access to various generations of wireless technologies.

Services and analytics to be a huge factor in revenue generation

Revenue resulting from service providers for the connectivity and additional basic value-added services they impart to the connected cars is likely to grow three folds from 2013 to 2018 to $16.9 billion globally. It is predicted that the connected car services market is developing at a 2013–2018 compound annual growth rate (CAGR) of 25%, approximately 21 times the growth rate projected for conventional mobile voice and data services during the same time period.

Connected Car Market to be dominated by embedded connectivity options

Other possibilities comprise banking on smartphone assimilation or after-market devices for connectivity, but embedded solutions are anticipated to ultimately dictate the market.

What began as a high-end play has already become mainstream

Luxury carmakers are keen to deal connected car features, such as Porsche’s Car Connect, along with companies comprising Tesla and BMW. However, wireless connectivity is extending to different price points. The connected car is now a reality, and in-vehicle wireless connectivity is promptly intensifying from luxury models and finest brands, to high-volume midmarket models.

Capable does not mean connected

Although the Connected Car Market expects strong numbers for connected competency, almost 75% of vehicles will be proficient of Internet connectivity by 2020 or around 220 million. However, only about 88 million of those cars will essentially be stimulated end points, as various car owners choose out.