Connected car shipments will hit 70 million by 2022, says Frost & Sullivan
A new report titled “Global Connected Car Market Outlook, 2017” by Frost & Sullivan forecasts global connected car shipments will increase from around 25 million to almost 70 million units by 2022.
According to the report, automotive suppliers – considering the potential in data explosion – are attempting to capture and sell car data by leveraging their software and hardware platforms. While over-the-air (OTA), human-machine interface (HMI) and connected services generate direct revenue streams, Big Data analytics will help save costs and accelerate returns on investments (ROI) for automotive original equipment manufacturers (OEMs).
Frost & Sullivan mobility analyst Siddhanth Kumaramanickavel, said: “A notable example of cross-industry collaboration is the integration of virtual assistants such as Amazon Alexa into the vehicle. This allows non-automotive players to invest in connected homes and cars. Companies like Maluuba, iNAGO, Promptu, Sensory and Baidu also are working on offering natural speech assistants, AI-enabled speech assistants, and voice biometrics to automotive manufacturers.”
The adoption of 4G LTE has increased connected car uptake and widened the subscriber base for telematics services. On the other hand, retention rates following free trials remain low. In order to attract more buyers, car manufacturers are experimenting with new service models such as product-as-a-service. Commission-based and transaction volume-based models will define revenue streams as businesses move toward this model.
Kumaramanickavel noted: “As North America and Europe are generating ROI from connected, automated and mobility-related services, OEMs are focusing on introducing the same experience in emerging regions.”
Another report titled “Connected Car Devices Market - Global Forecast to 2021” by Research and Markets projects the global connected car devices to grow at a CAGR of 16.3% to $57.15 billion by 2021. According to the report, the Asia-Pacific region is projected to witness the highest CAGR in the period.
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