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Dec 6, 2017,  by Allianz Partners Business Insights

Market for connected cars set for global expansion by 2020

The expansion of the smart car sector shows no signs of abating, with experts estimating that it will continue to rise at least until 2020, with Europe set to be the main market. Nevertheless, there could be obstacles to its growth.

Navigation smartphone

 

The market for connected cars has been growing steadily ever since 2010, and the tendency is not set to change in the years to come – on the contrary, it is actually predicted to increase by an even greater rate between now and 2020. Smart vehicle penetration in the automotive market shows no signs of slowing down, with growth rates varying according to location.

 

Europe set to overtake North America

 

This is the conclusion drawn by a report entitled "Connected Cars Market: Europe Industry Analysis and Opportunity Assessment 2014 – 2020", and reported by the website Digital Journal. Those behind the study point out that North America currently represents the largest global market for this type of car, but that this is about to change, as experts estimate that by the end of 2020, Europe will have taken the lead.

Regardless of the geographical area, the growth of the sector can be put down to one main catalyst, namely growing demand from drivers looking for vehicles that can guarantee better safety on the roads. As well as being fitted with plenty of other functionalities, connected cars can alert their drivers to problems with the vehicle, provide automatic driving assistance and also ensure that the car is travelling at a safe distance from those around it.

 

Boon for automotive giants, telecoms also set to benefit

 

Smart models promise much in the way of security, thus guaranteeing peace of mind for the driver, and are seen as representing the future of driving around the world, according to the report. This type of car could also unlock new perspectives for other sectors, such as telecoms for example. Innovations and improvements in technologies in this area can only help to drive the market for connected vehicles by multiplying the number of services that they offer to the consumer.

Added to this is the desire on the part of several European states to adopt new road safety regulations, meaning that various groups with a vested interest in the sector will be looking to make healthy profits. Not everything in the garden is rosy, however, particularly in Europe, where drivers are less than enthusiastic about the idea of sharing personal data via networks that are set up to ensure the smooth running of this type of car.

 

Optimism tempered by potential difficulties

 

Another study carried out recently in several European countries also showed that while they find the idea of connectivity appealing, drivers would prefer to have it via their smartphones as opposed to a system on board their vehicle, as technology for telephony is evolving and changing more quickly than for cars. Finally, there is another obstacle in the shape of the standards on which manufacturers base the development of their in-house systems, which are usually different and often incompatible.

 

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