Connected Cars to Increase Fivefold Over Next Five Years, Ushering in Smart Mobility Era
Published2016.10.04 09:41According to a recent forecast released by Gartner Inc., production volumes of connected cars in the automotive market are increasing sharply.
New vehicle production equipped with data connectivity capabilities through embedded communication modules or portable device connectivity is projected to increase from 12.24 million units in 2016 to 61 million units in 2020.
Gartner defines connected cars as automobiles capable of bidirectional wireless communication with external networks for the purpose of providing digital content and services, remote data transmission from vehicles, remote monitoring and control, and in-vehicle system management.
▲Hyundai Motor Connected Car
James Hines, principal research analyst at Gartner, stated, "Connected cars will provide a fundamental foundation of opportunity and innovation for the automotive industry and other related industries. Connected cars will produce new and innovative products and services, spawn new companies, drive the adoption of new value propositions and novel business models, and usher in a new era of smart mobility. The automotive industry's perspective will shift from individual vehicle sales to a service-centric approach for personal mobility."
Automakers will be able to generate additional revenue through service sales and upgrades even after selling connected cars, and will gain opportunities to enhance brand loyalty through customer-tailored services. Furthermore, they will contribute to innovation in adjacent business sectors such as insurance, vehicle rental, car sharing and ride-sharing services, and electric vehicle charging.
Gartner forecasts that demand for contextual information such as video sensing and geographic location information in connected car applications from 2016 to 2020 will grow by 150%.
▲ Global Connected Car Production Forecast by Connection Type (Unit: Thousand Units) Source: Gartner (September 2016)
*Embedded type: SIM chip-based embedded modem
**Tethered type: A method that allows mobile IP data connectivity to be shared with the vehicle using wired and wireless connections
Research analyst James Hines stated, "As vehicles become increasingly automated, numerous sensor technologies such as cameras and radar systems are being installed. Many vehicles will be able to distinguish and identify surrounding objects using video sensing technology, demonstrate more sophisticated responses, and enable automatic control as well."
To achieve environmentally friendly and increasingly automated vehicles, embedded processing capabilities must be enhanced by 5% annually from 2016 to 2020. Autonomous driving functions such as adaptive cruise control (ACC), collision avoidance, and lane departure warning systems require real-time camera and sensor data processing and pattern recognition. Sophisticated engine and transmission control systems are necessary for improved fuel efficiency and reduced exhaust emissions.
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