Connected Car to experience dramatic growth

January 27, 2015 // By Christoph Hammerschmidt
Already in a few years, the number of connected cars out on the roads will reach a quarter billion. Market research and IT consultant firm Gartner predicts a dramatic growth — and many new business opportunities for hardware and software vendors.

The IoT is currently the big thing in technology, and the automotive version of the IoT is the Connected Car. Marketing research frim Gartner has put figures on the expected growth of the Connected Car might achieve.

By 2015 (that is, during the current year), the number of connected things will reach 4,9 billion units — up 30 percent from 2014. By 2020, this figure will quintuple to 25 billion units, believes Gartner. In this picture, connected cars are a major element. "The connected car is already a reality", said Gartner research director James F. Hines. "and in-vehicle wireless connectivity is rapidly expanding from luxury models and premium brands to high-volume mid-market models."

The increased consumption of digital content in the car drives the demand for the hardware infrastructure capable of reproducing this content. The sophisticated infotainment systems required to process this content (audio, video, navigation, V2V information etc) will translate into business opportunities for all kinds of semiconductors — application processors, graphics accelerators, displays, and HMI interface technologies. At the same time, new concepts of mobility and vehicle usage will create new business models which in turn will typically be IT-based, Hines said. The same holds true for the expanding range of alternatives to car ownership, in particular in urban areas.

By 2020, one in five vehicles will possess some kind of wireless network connection by 2020. This amounts to more than a quarter billion connected cars. The proliferation of vehicle connectivity will greatly influence the most important functional areas of telematics, automated driving, infotainment and mobility services.

With respect to the entire IoT (not only the connected car), Gartner sees no single dominant IoT ecosystem platform through 2018. The lack of any coherent set of business or technical models for the IoT will continue to force companies to develop their own IoT ecosystems.

www.gartner.com