Connected car market ‘to grow almost 500 per cent by 2018’

The market for connected cars is growing rapidly, with an expected compound annual growth rate (CAGR) of 41.2 per cent between 2013 and 2018 and mobile network operators (MNOs) are jumping on the opportunity for new revenue streams and enhancement of customer loyalty that comes with this growth, according to the latest report from research firm Heavy Reading Insider, a research service from Heavy Reading.

MNOs Hold the Keys to Success for Connected Cars examines the connected car market, analysing how mobile network operators are likely to become involved in the connected car arena, as well as areas of growth expected in the market over the next two years. It discusses drivers and challenges in the industry and includes a comparative analysis of solutions available. Finally, it examines the geographic landscape of the market and details trends that are likely to occur in the industry over the next 18-24 months.

"Vehicle-to-vehicle (V2V) communications is closer to becoming a reality than many people realise," says Denise Culver, research analyst with Heavy Reading Insider and author of the report. "In many cases, traffic and safety boards, as well as other governmental agencies, have recognised that enabling cars to 'talk' to one another, road signs and other pieces of the transportation ecosystem can decrease the number of traffic accidents and, thus, fatalities on roadways each year."

The total shipments of connected cars are expected to grow at an estimated CAGR of 41.2 per cent between 2013 and 2018, Culver says. "This will account for more than 50 per cent of total global car shipments by 2018," she continues. "Various connectivity solutions, such as LTE, 3G, Wi-Fi and HSPA, are being bundled with OEM manufactured cars, apart from the existing traditional connectivity such as Bluetooth and 2G."