THE CONNECTED CAR REPORT: Forecasts, competing technologies, and leading manufacturers
BI Intelligence
The connected car is already on the market and generating significant revenue for car makers and tech companies.
Over the past year, there has been a significant uptick in the number of connected cars on the road. And as internet integration becomes more commonplace, the automobile as we know it will transform.
Over the next five to 10 years, this internet integration is expected to change the car ownership model, create a new platform for consumers to access content, lead to fully autonomous vehicles, and revolutionize the auto industry.
The market position of the car today is similar to where the smartphone was in 2010 — it's just taken off and is ready to explode.
In research from BI Intelligence, we take a deep dive into the connected-car market. We size the market for connected cars, determine the average selling price and how it will decline over time, and assess different manufacturers' approaches.
Here are some of the key takeaways from the report:
- The connected-car market is growing at a five-year compound annual growth rate of 45% — 10 times as fast as the overall car market. We expect that 75% of the estimated 92 million cars shipped globally in 2020 will be built with internet-connection hardware.
- But of the 220 million total connected cars on the road globally in 2020, we estimate consumers will activate connected services in only 88 million of these vehicles.
- Connected-car vehicle prices are out of reach for most car buyers, but they will drop significantly in the next few years. The high average selling price of $55,000 is driven by the fact that connected-car shipments tilt toward the luxury category.
- Connected-car technology is now split between approaches that put the internet connection in the car and those relying on a secondary device. Embedded connections don't require a phone's data plan to operate, and consumers and carmakers gain access to a wider variety of features and data.
- Embedded connections will win, in part because they offer two clear advantages to carmakers. They allow auto companies to collect data on cars' performance and send updates and patches to cars remotely, avoiding recalls related to the car's software.
In full, the report:
- Sizes the connected car market and who will benefit the most from consumer adoption
- Determines total revenue from connected car sales between 2015-2020
- Assesses what percentage of connected cars will actually have services that are used by consumers
- Explains the two key competing connected car technologies and determines which one will win out and why
- Examines how car companies will pair with wireless service providers to bring internet service to cars
- Looks at key examples of sales among select connected car manufacturers
Interested in getting the full report? Here are two ways to access it:
- Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now
- Purchase & download the full report from our research store. >> Purchase & Download Now
BI IntelligencePS. Did you know...
Our BI Intelligence INSIDER Newsletters are currently read by thousands of business professionals first thing every morning. Fortune 1000 companies, startups, digital agencies, investment firms, and media conglomerates rely on these newsletters to keep atop the key trends shaping their digital landscape — whether it is mobile, digital media, e-commerce, payments, or the Internet of Things.
Our subscribers consider the INSIDER Newsletters a "daily must-read industry snapshot" and "the edge needed to succeed personally and professionally" — just to pick a few highlights from our recent customer survey.
With our full money-back guarantee, we make it easy to find out for yourself how valuable the daily insights are for your business and career. Click this link to learn all about the INSIDER Newsletters today.