Connected cars redefining the car market

30-4-2015 11:15 | Views: 2403

 

The connected car is the newest type of car entering the vehicle market nowadays. BI Intelligence estimates that by 2020, ‘75% of cars shipped globally will be built with the necessary hardware to connect to the internet.’ Out of 220 million connected cars expected to be on the road by 2020, only 88 million of them are going to be used by consumers.   Next year, the number of cars build will connectivity will be around 50 million. In the coming years the number of connected cars will continue to grow. The number of active users of cars build with connectivity will also keep growing.

“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,” according to an article by Business Insider UK.

BI Intelligence report estimates that the sales of connected cars by 2020 wll equal $2.3 trillion and the connected car hardware and software will bring revenues of $ 152 billion. Driver assistance, safety, entertainment and well being are among the top systems that will bring more revenues by 2020. Right now, this kind of car is considered a luxury and that is why its selling price is $55,000, way too high for the majority of costumers willing to buy this kind of car. But in the coming years, the price is expected to go down and more people will be able to buy and use the connected cars.

 86% of customers have not heard or don’t know exactly what this new car that will change the vehicle market can do. 44% of consumers have never hears of connected cars while 42% of them are not familiar with connected car features and services. Only 14% of consumers have heard of connected cars and know exactly what these cars can or cannot do.

Streaming music for in-car use, surfing the internet via a monitor in the car, traffic signals, congestion, accidents identified by car and a system that allows the passenger to stop the car are among the features that users desire the most.

Plenty of car manufactures and communication industries are entering the game and are contributing to the connected car market. Audi, BMW, Mercedez-Benz, and Ford are among the Car makers entering the connected car market, while at&t, Verizon, Sierra wireless and Aeris are helping and providing their contribution to the market.  Software companies such as Apple, BlackBerry, Pandora and Spotify are also showing huge interest in the connected cars.

Autonomous cars are the next type of cars that will use the latest technology after connected cars. By 2020, autonomous car’s shipments are expected to top 180,000 according to the report.

 This year, Google is expected to add 150 autonomous cars to its fleet. What is interesting is the fact that only 8% of customers desire to own a self driving car and 40% of customers are not willing to pay for a self driving car.

 

(Picture source:http://bit.ly/1HTshyw)

 

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