August 7, 2023
Expect to see an increased number of connected cars on the road this year, according to a new Omdia report.
The report, investigating the automotive market’s landscape in 2023, found the number of connected vehicles on the road will grow by 18% this year, while more than 900 million connected cars will be on the road at the beginning of the next decade.
Global Connected Car Outlook Credit: Omdia
Companies such as Google and Apple were identified as being poised to develop associated technologies, such as in-vehicle video, communication and entertainment systems, as the market continues to boom.
Amazon is also emerging as a front-runner in developing in-car software, bringing its Fire TV entertainment platform to vehicles.
While consumer willingness to pay more for vehicle software services was found to be uncertain, the report projected automakers will continue to pursue smart car solutions, with connectivity set to become a standard feature for the majority of new car designs.
“There is ongoing uncertainty as to consumers’ willingness to pay extra for in-car services particularly as they correlate it with value for money given average journeys range between 15-30 minutes,” said David Tett, Omdia principal analyst. “Although it has been difficult to monetize, native car-based services are expected to provide such opportunities over the coming years.
“This potential has meant many stakeholders consider automotive as a key area for future growth.”
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