Revenues from ‘smart vehicle’ apps to rise ten-fold by 2017, according to report by Juniper Research
Hampshire, UK – The smart vehicle will become the new frontier for app developers over the next five years, finds a recent Juniper Research report. It forecasts that the market for in-vehicle apps will be worth over US$1.2 billion by 2017, as car manufacturers continue to embrace new infotainment ecosystems.
The report ‘Connected cars: automotive telematics & in-vehicle infotainment 2013-2017‘, found that advancements in automotive connectivity standards, such as MirrorLink and ever higher smartphone ownership, will create foundations allowing the connected car ecosystem to flourish, particularly in developed North American and Western Europe markets.
It also found that there will be a downward pressure on the price of vehicle manufacturers’ own embedded telematics infotainment services as the in-vehicle app ecosystem matures.
“The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer,” says the report’s author Anthony Cox, noting that smartphone tethering will enable the creation of a wealth of apps for the vehicle just as it did for the smartphone.
The market for embedded telematics systems in both the commercial and consumer areas will also see robust growth as consolidation among regional commercial telematics players begins to give an indication of which players will become a global force in telematics.
Further findings from the report include:
‘Big Data’ derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers;
The wide-spread deployment of V2V (vehicle to vehicle) and vehicle to infrastructure (V2I) technologies remains a long way off, though trials of are on-going in some markets;
Insurance telematics is reaching the point of wide-scale deployment particularly in certain markets such as the US, Italy and the UK.
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.