Gartner says connected car production to grow rapidly over next five years

Connected car production is growing rapidly in both mature and emerging automobile markets, according to the latest forecast by Gartner, Forecast: Connected Car Production, Worldwide. The production of new automobiles equipped with data connectivity, either through a built-in communications module or by a tether to a mobile device, is forecast to reach 12.4 million in 2016 and increase to 61 million in 2020.
October 7, 2016 Read time: 2 mins

Connected car production is growing rapidly in both mature and emerging automobile markets, according to the latest forecast by 2177 Gartner, Forecast: Connected Car Production, Worldwide. The production of new automobiles equipped with data connectivity, either through a built-in communications module or by a tether to a mobile device, is forecast to reach 12.4 million in 2016 and increase to 61 million in 2020.

Gartner defines the connected car as an automobile that is capable of bidirectional wireless communication with an external network for the purpose of delivering digital content and services, transmitting telemetry data from the vehicle, enabling remote monitoring and control, or managing in-vehicle systems.

"The connected vehicle is the foundation for fundamental opportunities and disruptions in the automotive industry and many other vertical industries," said James Hines, research director at Gartner. "Connected vehicles will continue to generate new product and service innovations, create new companies, enable new value propositions and business models, and introduce the new era of smart mobility, in which the focus of the automotive industry shifts from individual car ownership to a more service-centric view of personal mobility."

Connected car technology will create opportunities for automakers to generate post-sale profits through sales of additional services and feature upgrades, as well as enhance brand loyalty through a more personalised customer experience. It will also enable innovations in adjacent businesses, such as insurance, car rentals, car- and ride-sharing services, and electric vehicle charging.

Gartner predicts that future connected car applications will drive a 150 percent increase in demand for contextual information, such as image detection and geolocation, from 2016 through 2020.

"As cars become more automated, they are being equipped with an increasing array of sensing technologies, including cameras and radar systems," said Mr. Hines. "Many automobiles will use image detection as the primary means to identify and classify objects in the vicinity of the vehicle so they can provide more sophisticated responses and even have autonomous control."

To become more automated, and also cleaner, automobiles will require five percent more embedded processing functions, year over year, from 2016 through 2020. Automated driving functions, such as adaptive cruise control, collision avoidance and lane departure warning systems, necessitate real-time camera and sensor data processing and pattern recognition. Improving fuel efficiency and reducing emissions necessitate sophisticated engine and transmission control systems.

Location Based Systems

Related Content

  • April 17, 2012
    RFID market will be worth over $70 billion over next five years
    The market for RFID transponders, readers, software, and services will generate US$70.5 billion from 2012 to the end of 2017. The market was boosted by a growth of $900 million in 2011 and the market is expected to grow 20 per cent YOY per annum. Government, retail, and transportation and logistics have been identified as the most valuable sectors, accounting for 60 per cent of accumulated revenue over the next five years. “To date, the automotive sector has been a strong proponent of RFID, largely for immo
    Read More
  • February 28, 2013
    Driverless vehicles just around the corner?
    umors that self-driving taxis are about to hit the streets of Las Vegas have turned out to be untrue… but the age of the driverless vehicle is only just around the corner, as Pete Goldin finds out. From Herbie the Love Bug to Knight Rider to the cast of the Pixar film Cars, the autono­mous auto has long been a beloved icon in the entertainment industry. But how close is the fiction to fact? The general public might be surprised to find out just how soon autonomous vehicles could be driving on our roadways.
    Read More
  • February 3, 2012
    Cooperative infrastructure systems waiting for the go ahead
    Despite much research and technological promise, progress towards cooperative infrastructure system deployment is still slow. Here, Robert Cone and John Miles take a considered look at how and when it might come about. From a systems engineering viewpoint it looks logical and inevitable that vehicles should be communicating between themselves and with the road infrastructure. But seen from a business viewpoint the case is not proven.
    Read More
  • January 26, 2012
    Improving driver information, making in-vehicle systems a reality
    Scott J. McCormick, president of the Connected Vehicle Trade Association, considers what we have to do next to make the more widespread deployment of automotive telematics a reality
    Read More

Highlighted Content