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Connected car market to hit $17bn [ITWeb]
[July 17, 2014]

Connected car market to hit $17bn [ITWeb]

(ITWeb Via Acquire Media NewsEdge) LTE will be the fastest-growing cellular technology in cars, says Infonetics Research.

Connected car service providers are poised to almost triple their revenues to earn close to $17 billion by 2018, as players like GM, BMW, Tesla and others ramp smart apps.

That's according to market research firm Infonetics Research in its Connected Car M2M Connections and Services market size and forecasts report, which focuses on the telecom-related services available for automotive applications, fleet management and telematics, as well as the business models and trends that are driving the connected car machine-to-machine (M2M) market.

A connected car ( is equipped with Internet access, and usually also with a wireless local area network (LAN). This allows the car to share Internet access with other devices both inside and outside the vehicle. Often, the car is also fitted with special technologies that tap into the Internet access or wireless LAN and provide additional benefits to the driver.

Infonetics Research reveals that in 2013, the connected car market was valued at close to $6 billion, which is expected to rise to about $8 billion in 2015, and reach $16.9 billion come 2018.

"Unlike the smart grid vertical, which favours 2G technology to keep usage cheap, or connected cameras, which require at least 3G and ideally 4G technology for good quality, the connected car vertical is able to make use of every generation of cellular technology available," says Godfrey Chua, directing analyst for M2M and the Internet of Things at Infonetics Research.

"This means that just about any communications service provider, whether they have 2G, 3G, 4G, LTE or a combination of technologies, can find a niche in the connected car space." He points out that next-generation 3G and 4G technologies are paving the way for improved interactivity, video, real-time analytics and other smart apps in the connected car space-and thus a greater probability for service adoption.

"LTE will be the fastest-growing cellular technology in cars, expanding 135% annually between 2014 and 2018. A major boon will come from AT&T's agreement with GM to deploy LTE for the OnStar service," Chua adds.

In an effort to differentiate their vehicles, says Infonetics Research, major auto manufacturers including GM, BMW and Tesla are making significant investments in connected car programmes; the result is growing partnerships between leading M2M service providers like AT&T and China Mobile and automotive brands.

The market research firm says some service providers are seeing as much as 90% of their M2M revenue generated from the connected car segment.

According to the report, North America is the foundation of the global connected car business, accounting for 37% of global service revenue in 2013; Europe and Asia will be fast-growing regions. With sizeable auto markets and large land areas, countries like the US and China are ideal for connected vehicle services, the firm says.

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