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Connected car, it is worth 152 billion

Connected cars turn digital services into a deal for manufacturers, not just an industry exclusive prerogative for telco and software houses

26 Apr 2016

There is a huge business opportunity for car manufacturers and those providing services to drivers and is represented by the development of the connected car. Business Intelligence (Business Insider analysis and reporting service) tried to measure it.

The technology in vehicles is becoming more powerful and sophisticated and allows manufacturers first of all to boost the car’s safety, improve performance and diagnostic systems; with the latest generation of internet access (built into the car, and not obtained through a device like a smartphone) car data, environmental data can be gathered, updates to the car system can be remotely sent and controlled, and services provided. The car becomes a digital platform.

BI report says that by 2020 the market for services provided through the Internet connection of cars, will be worth about 152 billion dollars; and 75% of cars worldwide will be equipped with hardware and software to be connected to the network.

The type of services that can be offered by connected car are different, ranging from those referring to the safety and the driving experience (for example, alert service for weather or road conditions, gps tracker, car parks finder, etc.), up to the entertainment.

This sector will be worth $ 13 billion by 2020 and includes the range of applications for music or video streaming, or integration with social networks, Skype, Whatsapp. Just an example of what already in place, many of the major manufacturers (BMW, Volvo, Opel) especially with flagship models, aimed at a young target, have integrated Spotify, which has become the most popular streaming music service worldwide.

Another key remark of the report concerns the acceptance and use of this new type of services and functionality by persons: only half of those who own a connected car use new features and services, being by the way satisfied.

Very often consumers are not sufficiently aware of the “connected car” characteristics of their own car, but are impressed by the possibility of using a streaming music service.

Consumers are quite divided on how they want to pay for the services, at least 25% of them would accept to receive advertising and offers in return for free of charge use.

Easy to guess that the business related to the connected car will also be able to change the scenario of the big players in the automotive sector.

infografica connected car business insider

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