Despite 74 million connected cars currently on the road, the market for these next-generation vehicles is expected to quadruple by 2020. An important and vital segment for the automotive industry, manufacturers in the connected car market are investing heavily in these future technologies. What does this market represent in the economy and who are its main players?
A growing market for connected cars
According to a study by Strategy&, the global market for connected cars is expected to grow from €31.87 billion in 2015 to €115.2 billion by 2020. The largest share of revenue in this market is represented by the safety segment, with €12.18 billion, followed by the driving segment with €7.49 billion. By 2020, these figures are projected to reach €47.34 billion and €35.66 billion, respectively, for the connected automotive industry. The future of automotive largely relies on these new technologies, which emphasize home automation, connectivity, and the latest NFC wireless technology systems. Even though big data seems to be currently sidelined by major manufacturers, companies like Valeo, Faurecia, and tech giants Google and Apple are at the forefront of technology.
Cutting-edge innovations
The Frankfurt Motor Show was the focus of attention for high-tech and digital companies. Valeo, for example, introduced its Remote Clean4U system, which is revolutionary. This technology allows remote defrosting of a car with a system placed in the windshield wipers. After its virtual start-up system via smartphone, Valeo continues to innovate to offer drivers connected cars equipped with innovative systems. Mobius, for example, disrupts the traditional dashboard by developing a driving system that integrates real-time weather parameters. At the heart of automotive innovation, NFC wireless technology undoubtedly constitutes the central device of the connected car. Mobile applications and onboard screens allow the management of numerous parameters and automatic customization of settings based on driver preferences.
Alliances between manufacturers and tech giants
Always at the forefront of technological advances, Google and Apple are the two firms that can further develop this already lucrative market for connected cars. Mastering software and capable of investing heavily in big data and R&D, the two giants from across the Atlantic are also tasked with managing maintenance data for future customizable applications. From driving habits to musical preferences to the driver’s health status, future embedded technologies promise even greater connectivity. Fierce competition and alliances have been forming for some time, with Google announcing its CarPlay and Google Auto Link systems embedded in Hyundai’s Sonata. It seems that the time has come for closer ties between Internet giants and automakers. Thus, Google, which wants to impose its Android mobile operating system, has partnered with Audi, Honda, Hyundai, and General Motors. The introduction of 4G in the French-speaking market also represents an interesting opportunity for manufacturers, and Orange has partnered with Renault to develop this market segment.
