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

  • Growth of smart parking initiatives
    April 25, 2013
    New initiatives in smart parking have been announced in the US and Europe in recent months. Is the age of smarter parking finally with us? Jon Masters investigates. Smart parking comes to Manchester, reads the headline to a story posted on the UK city’s website towards the end of March this year. Sensors will be fixed to parking spaces to give drivers and authorities information on parking availability via mobile phone apps and other software, the story goes on to explain. Lower down the page, Manchester Ci
  • Measuring vehicle lengths with a single loop - promising results
    July 27, 2012
    District 7 of Caltrans has been conducting trials to see whether the use of a single inductive loop to measure vehicle lengths and so identify heavy trucks is feasible. So far, the results have been very promising, according to Lead Transportation Engineer Steve Malkson. Between them, the adjoining ports of Los Angeles and Long Beach, the US's two biggest, cover some 10,700 acres (43km2) and 68 miles (109km) of waterfront.
  • M&A in ITS: upward mobility
    February 17, 2021
    2021 has kicked off with a flurry of M&A activity. Adam Hill asks the bosses of IRD and Iteris what we should make of their new purchases – and finds out why the whole process is a bit like dancing…
  • Mobility itself is moving says cubic
    June 9, 2015
    Cubic’s Chris Bax looks at the challenges and benefits of implementing transport as a service. Imagine paying for travel in exactly the same way you buy your phone service. For example, you would pay a set amount in exchange for a monthly travel package covering up to 100km of free taxi journeys in your home city (including a guaranteed 15 minute pickup) and public transport usage within a 1,500km radius of your home. Not only would this option be cheaper than owning and maintaining your own car, you would