Connected Car Market Expects 15.4% Increase in 2014

Connected Car Market Expects 15.4% Increase in 2014


The connected car market is growing at a rapid pace. It also is undergoing major changes, thanks to the introduction of new competition, global regulation, and increasing profit potential. Visiongain’s commercial director, Sara Peerun, and head of reports, Daniel Harrison, recently shared some insights into this industry based on the new report, “Top 20 Connected Car Companies 2014: mAutomotive, Telematics, Infotainment, Diagnostics, Connectivity, Safety & Security.”

They emphasize the impact on the market as new players joined the foray this year. Specifically, telecommunications and Internet giants, competing with OEMs, are both starting to become prevalent in the connected car industry. Although OEMs currently lead the market, other types of companies will increasingly sell in-car technology and provide connectivity. Apple and Google, for example, are introducing operating systems to work with iPhone and Android. MNOs, like Verizon and Telematics, also are gaining interest.

As a result, different companies are shaping up to be industry leaders in the relatively new market. Car manufacturers and OEMs like GM, Ford, and BMW will have a generous market share in 2014. Yet wireless-modem chipset providers like Qualcomm and Broadcom also will be prevalent. MNOs also will have a stake, such as AT&T and telematics software providers. Yet it is important to keep in mind that the connected car market is still relatively small. As a result, new players like Google and Apple could reshape it.

In addition to the influx of technology companies in this market, Peerun and Harrison note that regulatory efforts are driving connected cars forward. In the European Union, for example, eCall will be mandatory in every new vehicle by 2015. This automated call to emergency services is initiated after an accident with a minimum set of emergency-related data (MSD). It is predicted to speed up emergency response time by 40% in urban areas and 50% in rural areas.

Additionally, Russia’s Emergency Road Assistance (ERA)- Global Navigation Satellite System (GLONASS) is expected to be required in all vehicles sometime this year. ERA-GLONASS is an emergency system like eCall. It will force foreign and domestic manufacturers to ensure that calls to emergency services can be made with basic connectivity technology. Also slated for 2014 is a vehicle tracking system to combat Brazil’s auto-theft problems. The stolen-vehicle-tracking (STV) device is called Contran 245.

In 2014, the connected car market is expected to be $25.5 billion—an increase of 15.4% from 2013. Peerun and Harrison note that this growth is driven by both demand for wireless connectivity and global regulatory safety mandates. In countries where the demand for wireless connectivity is shown by high levels of smartphone and tablet adoption, the car is the natural next frontier for seamless connectivity. As safety regulations ease any privacy concerns on the part of drivers, the growth of telematics solutions should translate into prices dropping to levels that consumers will more readily pay. Given such an outlook, the connected car market indeed seems destined for growth.  

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