Demand for connected cars is on the rise. Consumers are increasingly expressing their preferences for cars and other vehicles that have infotainment systems, driver assistance programs, advanced safety functions, and other advanced technologically-based features. The global connected vehicle market is projected to surpass a value of USD 8 billion by 2021, and is dominated by the Americas and EMEA. Some estimates predict that 2 out of every 3 cars on the road will be connected vehicles in four years鈥� time.
What are connected cars?
Connected cars have direct access to the Internet and, typically, to a wireless local area network, which allows them to enable connectivity to other connected objects, including smart phones and other IoT devices. Connected vehicle technologies allow vehicles to communicate and transmit data between each other and the world around them. These technologies can also enhance safety, warning the driver of potential hazards on the road and issues with the vehicle itself. Connected vehicles convey information to drivers to help them make informed decisions.
Connected car trends
Infotainment systems and safety assistance technology are two of the biggest trends in the connected vehicle market. Though the adoption of infotainment systems was previously limited to the luxury car segment, they can now be found in cars in most price ranges. The demand for infotainment services is growing among all segments of passenger cars and many commercial vehicles. Vehicle infotainment systems typically provide a combination of navigation, news, weather, communication (including phone calls), and audio/video streaming. Many connected vehicles also have Bluetooth connectivity and voice commands.
Safety assistance technologies are also known as advanced driver-assistance systems (ADAS) and are designed to provide enhanced safety and vehicle operation. They can alert the driver to dangerous road conditions, hazards, and issues with Currently, safety assistance technology may be built into a vehicle or be available for purchase as an add-on option, but in the future they are expected to be a standard component of most鈥攊f not all鈥攁utomobiles across all segments. Many regulatory bodies are already making these technologies, or aspects of them, mandatory. For example, the US Department of Transportation鈥檚 National Highway Traffic Safety Administration (NHTSA) will require all new vehicles under 10,000 pounds to have rear view cameras by May 2018.
Top connected car manufacturers in the global market
General Motors Co.
Honda Motor Co.
BMW AG
Fiat Chrysler Automobiles
Volvo
Tesla Inc.
Ford Motor Company
Volkswagen Group
Daimler AG
Toyota Motor Corporation
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