55 million app-enabled cars to be sold by 2020 in Europe, Middle East and Africa
Smartphone apps integration software from Apple and Google are forecast to be sold in more than 55 million cars by 2020 in Europe, the Middle East and Africa (EMEA), according to a new study released by IHS Inc.
EMEA represents a significant growth market for original equipment manufacturers (OEMs), Apple, Google, and for app developers. In 2014, IHS Automotive forecasts that Google Projected Mode and Apple’s CarPlay will only be available in 7,000 and 52,000 cars sold, respectively. By 2020, Google Projected Mode software will be sold in more than 28 million cars, and Apple’s CarPlay software will be sold in more than 27 million cars. These cumulative sales will be greater than sales in China during the same period.
“Apps for autos are growing rapidly and will have a profound impact on auto infotainment and connectivity in the next decade,” said report author Egil Juliussen, research director at IHS Automotive. “Auto apps will influence the competitive landscape among auto OEMs and will even change the brand market share between them. OEM’s will have to keep up to remain competitive.”
Currently, Western Europe leads the entire EMEA region in Smartphone apps integration software due to its lead in automotive sales and Smartphone app sales. But by 2020, Eastern Europe, the Middle East and Africa will see spikes of growth of their own. By 2020, cumulative car-enabled sales of Apple’s CarPlay and Google’s Projected Mode in the Middle East and Africa will top sales in Korea and sales in Eastern Europe will top sales in Japan.
Almost 200 million units sold globally by Google and Apple CarPlay by 2020
While Apple is the current leader in announced OEM design wins for Smartphone apps integration in EMEA and worldwide, Google will take the number one place in EMEA and worldwide sales by 2020. IHS forecasts that Google Projected Mode software will be enabled in nearly 100 million cars. Apple’s CarPlay will be a close second place with 92 million cars sold with CarPlay software. Many cars sold will have both Apple CarPlay and Google Projected Mode as the OEM does not know which Smartphone their buyers will have.
Global app spending to hit $40 billion by 2020
World consumer spend on mobile apps is set to grow from $24 billion in 2014, to more than $40 billion by 2020. “While games will dominate, other services such as Music, Location and Navigation will contribute to revenue growth,” said Jack Kent, mobile analyst at IHS Technology.
IHS research shows that apps are the fastest growing digital content category. The rise of devices that connect to Smartphones and tablets, including cars and also wearable and other smart devices, will further increase mobile app downloads and revenues.
App stores will be the key distribution channel for auto apps. “App stores have revolutionised how consumers access digital content and services, providing a global distribution, discovery and billing platform that will reach well beyond Smartphones and tablets,” Kent said.