The world passenger car market is projected to reach 86.5 million units by the year 2017, while OEM-connected car system shipments are expected to grow from 8.22 million in 2012 to 39.5 million in 2016. This according to data released by Global Industry Analysts, Inc., and ABI Research, respectively.
These growing markets represent a huge potential for providers of connected vehicle services. With the connected vehicle becoming a reality, the automotive industry and connected car yechnology providers might partner and work with the rapidly changing wireless industry in order to remain relevant.
Providers’ next step will be to go beyond selling connectivity to car OEMs to target telecoms operations. Whether the automotive industry can embrace a different mindset towards connectivity and what the various wireless data business models will look like across vertical markets are key questions going forward. Cars can be connected to the Internet through embedded or smartphone-based systems.
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Airbiquity has partnered with telecom operators, such as Verizon and AT&T. At the International CTIA Wireless 2012 conference this week in New Orleans, Airbiquity said it will focus on working with wireless companies in order to enhance discussion on customizing its platforms. “There are a number of opportunities for telecom operators,” Leo McCloskey, Airbiquity’s VP of marketing, told RCR Wireless News.
“We have a number of discussions going on with mobile operators and different partners because we develop platforms that are very specific to connected vehicles and mobile operators are interested in discussing how they can use this platform to create services.”
In other words, mobile operators could also become channels for connected vehicle providers.
Main trends
A couple of things are going on that will boost the market. “Awareness of both the consumer and the regulatory sides, as well as in the insurance side, about the importance of connected vehicles” is growing in the context of an increase in connected consumers, McCloskey noted. He added that technology is maturing and moving toward the cloud.
>>> Listen to McCloskey talking about main trends in the connected market.
Airbiquity is betting on a solution for integrating mobile phones, applications, and cloud-based services with the driving experience.
The challenge for vehicle manufacturers is that they are creating a product that is based on yesterday’s model. By integrating access with vehicles, commercial enterprises can not only communicate with driver, but monitor the vehicle, too, McCloskey said.
“It helps in the economy of scale,” McCloskey explained. (Listen to McCloskey talk about about the adoption of connected vehicles.)
