Technavio analysts forecast the global connected car M2M market to grow at a staggering CAGR of nearly 28% during the forecast period, according to their latest report.
According to the report, the market will witness a rapid growth owing to the increased awareness about safety and security services among consumers. North America and Western Europe will contribute most of the revenue to the connected car M2M market. The demand for vehicles with Internet connectivity is increasing among consumers and businesses. Consumers use this feature to reduce fuel consumption, enable safe driving, and avoid traffic congestions.
Technavio ICT analysts highlight the following three factors that are contributing to the growth of the global connected car M2M market:
Availability of high-speed wireless networks
Telecom operators play a significant role in the growth of the global connected car M2M market as the connectivity of the connected car M2M modules and platforms depend solely on telecom networks. Some connected car M2M services require high-speed wireless networks. For instance, on-the-move radio streaming, music, video, location-based services (LBS), and on-demand content require high-speed wireless networks.
Increased customer demand for advanced infotainment services
A connected car provides advanced infotainment services such as multimedia streaming, personalized music streaming, social media and networking, and in-car Wi-Fi hotspot connectivity. For instance, GM offers lomation, which is an advanced technology that enables users to find services and goods while traveling. GM also offers advanced navigation systems as part of its infotainment package.
Growing number of smartphone integrated services
The demand for in-vehicle connectivity and telematics has led to technological advances that aim to enhance the overall in-vehicle experience of both the passengers and drivers. Consumers are spending plenty of time on their personal mobile devices. Thus, they expect a similar enhanced experience from their in-vehicle entertainment and information systems, particularly with respect to user interface.
The evolution of connectivity in vehicles has prompted consumers to connect their smartphones and tablets to the vehicle’s infotainment systems. For instance, CarPlay and Android Auto that are Apple’s car integration systems, are used widely by the automobile OEMs in their infotainment systems to allow drivers to connect their smartphones to the automotive hardware.