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October 4, 2016

Connected car boom set to see production hit 61 million in 2020

Connected cars will introduce a vast increase in smart mobility.


Gartner has forecast connected car production to hit 12.4 million in 2016, with a boom in both mature and emerging markets set to see that number surge to 61 million by 2020.

From 2016 through to 2020, connected car applications are set to see a potential increase of 150 percent due to demand for contextual information, such as image detection and geolocation.

As defined by Gartner, the connected car is an automobile that is capable of bidirectional wireless communication with an external network for the purpose of delivering digital content and services.

James Hines, Research director at Gartner said: “Many automobiles will use image detection as the primary means to identify and classify objects in the vicinity of the vehicle so they can provide more sophisticated responses and even have autonomous control.”

Connected car technology is to create opportunities for automakers to generate profits through sales of additional services and feature upgrades, including brand loyalty through a more personalised customer experience.


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It is also expected to enable innovations within adjacent businesses, which include insurance, car rentals, car and ride-sharing services and electric vehicle charging.

Hines added: “As cars become more automated, they are being equipped with an increasing array of sensing technologies, including cameras and radar systems.”

Cars will require five percent more embedded processing functions in order to become more automated and cleaner, year over year from 2016 through 2020.

James Hines said in a statement: “Connected vehicles will continue to generate new product and service innovations, create new companies, enable new value propositions and business models, and introduce the new era of smart mobility, in which the focus of the automotive industry shifts from individual car ownership to a more service-centric view of personal mobility.

“The connected vehicle is the foundation for fundamental opportunities and disruptions in the automotive industry and many other vertical industries.”


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