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.

For more information on companies in this article

Related Content

  • Brazil opts for freeflow tolling
    April 9, 2014
    David Crawford explores the technical background of Brazil’s First multi-lane free-flow tolling system. The 2013 opening of Brazil’s first fully-operational, all-vehicle, multi-lane free-flow (MLFF) tolling system in the state of São Paolo has set the scene for a new phase of modern electronic fee collection (EFC) deployment in Latin America’s largest country. It has toll programmes at both federal and state levels, with São Paulo – the most populous state, with the largest road network – leading in the awa
  • Safe-driver training reduces costs, increases safety
    February 3, 2012
    Hermes, one of Europe's leading home delivery specialists, and part of the Otto group's European logistics division, estimates that introducing a range of safe-driving measures in its UK operations have contributed to a US$1.5 million cost saving to the business in the 12 months to April 2010.
  • New forms of smart mobility aiding congestion reduction, report finds
    June 26, 2015
    A new report from Navigant Research analyses the global market for smart urban mobility infrastructure and services in smart cities, including car sharing, advanced traffic management, smart parking, and other transportation innovations, with regional forecasts for revenue, through 2024. According to the report, Urban Mobility in Smart Cities, the market for smart urban mobility infrastructure and services is expected to exceed US$25 billion in 2024. In cities around the world, thoughts on mobility in ur
  • Ethernet to tap new synergies for connected cars
    July 25, 2013
    Ethernet could be catalyst for bringing the automotive industry a step closer to connected vehicles. The latest report from Frost and Sullivan indicates that the need to integrate multiple consumer electronic devices into the car offering connected services and maintaining brand identity has led to a situation where original equipment manufacturers (OEMs) are shifting toward higher connectivity options which could power prioritised and personalised services, catering to varied consumer needs. With the parad