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

  • September 23, 2016
    Norway continues to lead global electric vehicle market
    Norway continues to lead the global market for electric vehicles, according to the most recent plug-in electric vehicle (PEV) index from IHS Automotive, part of business information provider IHS Markit. Plug-in electric vehicles are defined as either a pure Battery Electric Vehicle (BEV) or a Plug-In Hybrid Vehicle (PHEV). Based on analysis of new vehicle registrations during the first quarter 2016, one out of every three vehicles registered in Norway during the quarter was a plug-in electric vehicle, r
  • April 16, 2014
    Strong first quarter 2014 for IRD
    International Road Dynamics (IRD), Canada-based intelligent transportation systems (ITS) supplier, has announced solid growth for the three months ended February 28, 2014. Revenue increased by 32.2 per cent to $10.3 million compared to $7.8 million for the same quarter last year. Solid growth was achieved in the Company's Canada and United States and Latin America markets, while EBITDA increased to $490,090 compared to a loss of $190,359 in the first quarter of 2013. Quarter one of 2014 is the fourth con
  • January 7, 2014
    Study forecasts growth of self-driving cars
    In its latest study, “Emerging Technologies: Autonomous cars—not if, but when,”, IHS Automotive forecasts total worldwide sales of self-driving cars (SDC) will grow from nearly 230 thousand in 2025 to 11.8 million in 2035 – seven million SDCs with both driver control and autonomous control and 4.8 million that have only autonomous control. In all, there should be nearly 54 million self-driving cars in use globally by 2035. The study anticipates that nearly all of the vehicles in use are likely to be self
  • March 4, 2016
    Electric bus sector is game changer for battery market
    According to Dr Victoria Adesanya-Aworinde, technology analyst at IDTechEx, the electric bus (e-bus) market is growing at a CAGR of 20 per cent in terms of unit sales. She says the rapid growth is a game changer for the battery market as electric buses require large-sized batteries ranging from 74 kWh (fast charging e-bus) to over 300 kWh (slow charging e-bus). IDTechEx Research forecasts that the e-bus battery market will overtake the consumer electronics sector by 2020. The new IDTechEx Research repor