The connected car is quickly pulling out of being an aspirational technology to being a real force on the road. Today, these connected automotive technologies are offering a solid revenue stream for both automakers and technology OEMs.
“By 2020, 75% of cars shipped globally will be built with the necessary hardware to allow people to stream music, look up movie times, be alerted of traffic and weather conditions, and even power driving-assistance services such as self-parking,” BI Intelligence said in a January 2016 report.
The research firm estimates that:
- The connected-car market is growing at a five-year compound annual growth rate (CAGR) of 45% — which exceeds the overall car market by 10x.
- 75% of the estimated 92 million cars shipped globally in 2020 will be built with internet-connection hardware.
- Of the 220 million total connected cars on the road globally in 2020, consumers will activate connected services in only 88 million of these vehicles.
- Although out of reach for many buyers today, connected-car vehicle prices will drop significantly in the next few years. Today's $55,000 average selling price represents the reality that these cars are in the luxury category.
“The increasing consumer demand for smartphone features in a vehicle and the growing number of telematics mandates by various governments (both existing and expected) are key drivers of the connected car market,” Markets and Markets said in a recent report.
A new infographic from Spireon, a GPS vehicle tracking technology company, clearly demonstrates the interest that consumers have in the newest, coolest automotive technology. Take a look and let us know whether there's a clear road to connected car adoption in the comments section below.