According to a recent report published by ReportsnReports The Connected Car Ecosystem: 2016 – 2030 – Opportunities, Challenges, Strategies & Forecasts, the use of telematics is already widespread with the growing adoption of applications such as fleet management, emergency calling, navigation, vehicle tracking and remote diagnostics.
Between 2016 and 2020, automotive OEMs and other ecosystem players will continue to invest heavily in dedicated connected car programs that go beyond traditional telematics. Multiple automotive OEMs are beginning to integrate in-vehicle payment capabilities with their connected car platforms to make it possible for drivers to pay for services such as fuel, parking, food and tolling, without having to leave their vehicles.
By the end of 2016, research estimates that connected car services will account for $14 Billion in annual revenue, driven by a host of applications. The market is further expected to grow at a CAGR of 31% between 2016 and 2020. Although the market is presently dominated by infotainment and telematics, connected driver assistance systems and autonomous driving applications will witness the highest growth rate over the next four years.
The connected car ecosystem continues to consolidate, with larger players investing in acquisitions to increase their market share, technical capabilities, revenue and geographic reach. For example, semiconductor giant Intel has made a spate of acquisitions including Altera, Yogitech, Arynga and Itseez, to bolster its IoT and connected car capabilities. And many mobile operators have expanded beyond their traditional role as connectivity providers, to offer end-to-end connected car platforms directly to automotive OEMs and aftermarket suppliers.
The report presents an assessment of the connected car ecosystem including OEM connected car programs, enabling technologies, key trends, market drivers, challenges, applications, collaborative initiatives, regulatory landscape, standardization, opportunities, future roadmap, value chain, ecosystem player profiles and strategies. It also presents market size forecasts for connected car services from 2016 through to 2030. The forecasts are segmented for 3 connectivity models, 5 application categories, 5 regions and 17 leading countries.