Skip to main content

Revenue growth of 30 per cent forecast for connected car market in 2016

According to research company Statista’s Digital Market Outlook (DMO), 2016 will see approximately 11 million connected cars in America, with almost 32 million intelligent cars on America’s streets by 2020. Worldwide the number of connected cars is forecast to rise to 160 million intelligent vehicles. Statista claims the main impact of the enormous growth of the market comes from the rapid development of new features and possibilities. The biggest segment however, according to the DMO, is not infotainmen
March 16, 2016 Read time: 2 mins
According to research company Statista’s Digital Market Outlook (DMO), 2016 will see approximately 11 million connected cars in America, with almost 32 million intelligent cars on America’s streets by 2020. Worldwide the number of connected cars is forecast to rise to 160 million intelligent vehicles.

Statista claims the main impact of the enormous growth of the market comes from the rapid development of new features and possibilities. The biggest segment however, according to the DMO, is not infotainment but security and driving assistance, which it says is being dominated by China. The revenue of the safety and supporting upgrades of connected cars in China will reach US$4.7 billion this year.

Google and Apple have already announced their cooperation with 994 Volkswagen to roll out services including the ability to remotely lock and unlock using the smartphone for 2016 model year vehicles.

However, the most rapid growing segment of connected cars is the intelligence maintenance and diagnosis of the cars and even of the drivers. This segment has seen a growth of over 200 per cent in revenue in 2015.

Now that Microsoft has announced it will join the connected car market, Statista forecasts huge potential for the software provider, which is focusing on business features as well as entertainment. The company has already announced partnerships with 609 Volvo to integrate Microsoft Band 2 with a Windows 10 smartphone and the Volvo on Call Universal App and with car accessories specialist 6328 Harman to integrate key elements of Microsoft Office 365 productivity suite capabilities into Harman infotainment systems.
 
The global market leader is America, according to Statists, which forecasts a market volume of around US$8.3 billion in 2016, followed by China with around US$8.1 billion. Japan is predicted to reach a cumulative revenue of US$3.8 billion and Germany US$ 3.1 billion.

Related Content

  • March 3, 2016
    Growth of OEM telematics in new passenger cars
    The latest research by ABI Research forecasts the global penetration of embedded and hybrid factory installed OEM telematics in new passenger cars to exceed 72 per cent by 2021. Growth will mainly be driven by key volume car OEMs in the US, European Union and China markets. Brands within these markets showing accelerated growth include GM, which expects to reach 12 million OnStar subscribers globally by the end of 2016, including its Opel brand in Europe and Cadillac in China; and Ford, which claims to have
  • July 24, 2013
    Reports says Apple iOS too late and too limited
    According to Frost and Sullivan, Apple’s new iOS 7 for the automotive industry is too late and too limited for the automotive market. The device has notable changes to the interface and improved voice capabilities of personal assistant SIRI. Auto OEMs however, with their respective partners have moved many a mile without the need for Apple’s involvement. The announcement may be seen as a phased approach after last year’s announcement of SIRI EyesFree by Apple at WWDC. “If compared to other players, such as
  • November 28, 2014
    Connected cars market expected grow by a third globally by 2020
    A new report by Allied Market Research, Global Connected Cars Market (Technology, Connectivity Solutions, Application, Products & Services and Geography) - Size, Share, Global Trends, Company Profiles, Demand, Insights, Analysis, Research, Report, Opportunities, Segmentation and Forecast, 2013 - 2020, indicates that the global connected cars market is forecast to reach US$141 Billion by 2020, growing at a CAGR of 32.7 per cent during the period 2014 - 2020. The integrated connectivity solutions segment
  • April 6, 2017
    Connected car devices market predicted to grow at 16.3 per cent by 2021
    The latest research report from MarketsandMarkets indicates that the connected car devices market is projected to grow at a CAGR of 16.3 per cent from 2016 to 2021, to reach US$57.15 Billion by 2021. Some of the major factors responsible for the growth of the market are government regulations for safety and increasing electrification of vehicles. Connected car devices with dedicated short range communication (DSRC) as connectivity use short range communication technologies such as radar and Lidar, which