420 million Connected Cars until 2018?

420 million Connected Cars until 2018?

420 million Connected Cars until 2018?

0 comments 📅01 December 2014, 22:31

According to IDATE – a European organisation analysing the technology market – by the year 2018 there will be 420 million cars connected to the Internet. In their report “Connected Cars”, the researchers present analyses of strategies of car manufacturers, cell phone operators and suppliers of applications. The report also lists the main drivers of growth and barriers in development in the industry. In Europe, a good example of such driver would be regulations for increased car safety (for example eCall – noted by eco.driving.info) and in the US a 4G module (installed as standard equipment in cars produced by GM).

The report shows three ways how cars can access the Internet. The first, most obvious and technologically beneficial is a permanently installed Internet car module (today most often used for FMS solutions). The second option is to use a smartphone as a modem or a router allowing access to entertainment or navigation. The third is a hybrid of the previous two, with a clear division between telemetry (installed in the car) and infotainment (available via smartphone). The purpose behind these systems is to enable cars to communicate externally (M2M: safety, maintenance, road assistance) and provide Internet access to the driver and the passengers. Analysts point out that financing such solutions could be switched from CAPEX to OPEX opening another revenue channel for the automotive industry.

IDATE also sees new opportunities for cell phone operators connected mainly with the sale of data transfer and supply of entertainment. Presently, however, the main business model is defined as B2B2C (wholesale offer for mobile data transfer to car manufacturers and retail products for consumers). One of the companies providing an alternative model of cooperation is AT&T (USA) which, as of March 2014, made a special offer directly to Audi A3 drivers. The operator also plans to extend this offer to mass market consumers.

The strategy of cell phone operators seems simple – cars, following smartphones, tablets and PCs will become connected to the Internet. Apple and Google view the situation differently. Their target is to provide their products to drivers and additionally for Google, to be able to collect marketing data.

IDATE forecasts that the turnover linked with connected cars could be worth more than 8 billion euros in 2018, of course, provided that the designed solutions are accepted by the market. The goal of all the parties mentioned in the report is to convince the drivers like us, that such solutions are necessary in terms of increased safety and comfort of travelling.

Source: http://www.idate.org

Author: Michał Baranowski https://eco-driving.info

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