Autonomous driving to propel connected car market at CAGR of 31% through 2020

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A report from SNS Research has revealed that connected car services will bring in $14 billion in annual revenue, at a CAGR of 31% in the period 2016–2020.

Though infotainment and telematics are playing a major role in this market, connected driver assistance systems and autonomous driving applications will witness the highest growth rate over the next four years.

At present, the use of telematics has resulted in broad adoption with the utilisation of applications such as fleet management, emergency calling, navigation, vehicle tracking and remote diagnostics. Over the next four years, automotive OEMs and other ecosystem players will invest in connected car programs that concern the realm that is beyond traditional telematics. Several automotive OEMs have begun combining in-vehicle payment capabilities with their connected car platforms to facilitate commerce with regard to fuel, parking, food and tolling – all from the car.

The connected car ecosystem continues to witness consolidation, with larger companies undertaking acquisitions to boost market share, technical capabilities, revenue and geographic reach. For instance, Intel has made a number of acquisitions including Altera, Yogitech, Arynga and Itseez, to boost its IoT and connected car capabilities. Several mobile operators are expanding their purview from beyond their role as connectivity providers, to offer end-to-end connected car platforms directly to automotive OEMs and aftermarket suppliers.

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