Eight predictions for the connected car market by 2020

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Connected car solutions company Abalta Technologies has released eight predictions for the connected car market in the run up to 2020 that provides insight on development and growth in the sector.

The eight predictions for the market are:

  • New connected car traffic solutions will finally deliver:  The report argues that, in the future, traffic management systems will be part of the transportation infrastructure – but for the time being, swarm intelligence systems enabling drivers to alert each other of real-time traffic conditions will have “an immediate positive impact” on traffic congestion.

  • Connected cars will save drivers time and money: Telematics will exchange data with a central traffic management system, ensuring drivers are directed to the best available route. The city of Los Angeles is already experimenting with such a system.

  • A new urban landscape for shared mobility: Naturally inspired by the rampant success of companies such as Uber, Abalta predicts carmakers will eventually put forward their own ride sharing services. In the future, users could theoretically call for a car, enter a destination, and even choose music for the ride and be billed automatically.

  • Autonomous vehicles will struggle as they hit the market: Researchers generally agree that there will be several stages of autonomous cars, from self-parking to self-driving. Whether the accepted practice is to develop an entirely new type of car, such as Google, or whether automotive manufacturers will slowly integrate these elements into their current offerings, remains to be seen.

  • Demand will rise for distraction-free connected car interfaces: It will be up to vehicle manufacturers and OEMs to ensure that features are introduced with no risk to the user – as consumers continue to insist on using wireless technology behind the wheel.

  • The app economy will thrive with the connected car: According to Abalta’s research, the two things consumers want from their car the most are music and navigation. Similar to the smartphone revolution, the natural way to deliver such services will be through apps.

  • Hackers will create chaos with ‘car lockdown’: As various stories hit the press about how hackers have disabled car features, Abalta fears the situation will only get worse. Automotive security will have to comprise several forms, as OEMs need to treat cars as self-contained enterprise networks.

  • Connected car technology will differentiate vehicle manufacturer brands: As connected cars disrupt the automotive landscape, traditional carmakers will have to work out who they should partner with – Apple for CarPlay, Google for the Open Automotive Alliance, Microsoft for Windows Embedded and so on – and rebrand accordingly.

The global market for connected car technology is estimated to increase at a CAGR of 34.7% to reach $131.9 billion by 2019. The areas in which automakers will bring about differentiation while meeting consumer demand are mobility management, safety, vehicle management, driver assistance, entertainment systems and well-being.

Abalta Technologies’ whitepaper forecasts the success of connected car traffic solutions at easing the life of commuters. Drivers are also expected to gain savings in terms of time and money due to these innovative technologies. Shared mobility is gaining traction in cities across the world and Frost & Sullivan holds that car-sharing memberships have risen to 3.3 million in 2013 from 1.3 million in 2010, with consumers saving an estimated $3,000 per year on account of these services.

Abalta Technologies founder and CEO, Michael O'Shea, said: “With consumer demand for new in-car infotainment systems such as streaming audio and gaming, and new concerns about safety and security systems, the face of the connected car market is rapidly evolving.”

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