More and more cars these days are connected – equipped with sensors and internet access, allowing the vehicle to connect to other devices within the car and to devices, networks and services outside the car.
Within five years, half of all consumer vehicles on the road will have at least one connectivity service, such as telematics, V2X (vehicle-to-everything) communications, or connected car commerce services, according to a new report from Juniper Research.
The research firm says that increasing industry involvement from OEMs and network operators, combined with the development of new V2X services, will be key drivers for future growth.
Consumer Connected Cars: Applications, Telematics & V2V 2017-2022 predicts that revenues from consumer connected car services around the world will rise from $18.4bn (£14.3bn) in 2017 to $49.2bn (£38.1bn) in 2022, growing at a compound annual rate of 21.6%.
To be successful in this growing market, automotive OEMs must prepare to capitalise on the opportunities presented by V2X services, such as smart parking and automated fuel payments, Juniper Research believes.
“OEMs will begin competing on the level of convenience that their in-vehicle services offer,” commented research author Sam Barker. “Soon, level of service will be more important to drivers than vehicle performance itself.”
In the V2I (vehicle-to-infrastructure) sector, stakeholder investments and public-private partnerships will be as critical as OEM involvement.
The report also said that in-vehicle services must remain specific to the vehicle or risk being viewed as unnecessary and invasive. Lucrative services will therefore be restricted to fuel payments, smart parking and toll roads.
However, the report pointed out that early rollouts of infrastructure could take up to five years to implement, allowing stakeholders time to develop pertinent use cases.