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

  • Connected Commerce points to tomorrow
    October 28, 2014
    How are we going to shop tomorrow? The answers will be found in the CARTES Connected Commerce Area, where the bright future of retail and payment technologies will be on show. A new addition to CARTES, the dedicated exhibition is designed to help answer questions about the future direction of the sector in this vital and lucrative area of business. Retail and payment are both going through a revolution thanks to new technologies, solutions and approaches which in turn are transforming the customer experienc
  • Ballard and Siemens sign $9 million agreement on fuel cell engine train
    November 16, 2017
    Ballard Power Systems (BPS) has announced it has signed a development agreement with Siemens, with a contemplated value of $9 million (£6.8 million), to develop a zero-emission fuel cell engine to power Siemens’ Mireo light rail train in Germany. Initial deployments of the train are planned for 2021. BPS will develop a 200-kilowatt fuel cell engine for integration into the new train platform which aims to reach speeds of up to 160 km per hour (100 miles per hour). Sabrina Soussan, chief executive officer
  • Automotive OEMs ‘prefer a hybrid approach to power C-ITS’
    May 25, 2017
    The growing demand for road safety and efficient mobility is driving the adoption of cooperative intelligent transportation solutions (C-ITS) and a key enabler of C-ITS is Vehicle-to-X (V2X) communication, says Frost & Sullivan. It supports the exchange of information between vehicles, infrastructure and other road users, such as pedestrians. Vehicle-to-vehicle (V2V) communication is enabled using 802.11p (DSRC or ITS-G5) or cellular technology. 802.11p is a proven technology; however, it is not future proo
  • CES 2021 | Connecting cities
    March 1, 2021
    Covid-19 forced the Las Vegas Convention Center to close its doors for CES 2021, but the trade show’s online debut suggests the pandemic is helping cities