Growth of embedded mobile technology will see the value of the connected car market triple to €40 billion in 2018
The GSMA has predicted that all new cars will have some form of mobile connectivity by 2025.
This is according to research carried out on its behalf by SBD, which said this will be due largely to the growth of embedded mobile technology.
The GSMA said that based on forecasts, the value of the connected car market will triple from €13 billion last year to €40 billion in 2018.
According to the research, €32.6 billion of revenues – 83 per cent of the total – will be driven by the growth of embedding SIM technology into vehicles to enable mobile connectivity.
This will then encourage a range of mobile-based services around safety, security, infotainment, traffic information, navigation and vehicle diagnostics.
The GSMA said the growth of the connected car market will also be boosted by the European Commission’s selection of ’embedded mobile’ for its eCall in-vehicle emergency call services mandate, in place of alternative connectivity means such as smartphone integration or tethered solutions.
The initiative requires all new car models in member states from 2015 to have the European eCall system fitted, which will connect a vehicle to emergency services following a collision and provide location and impact information. It added that eCall sales in 2016 are expected to reach seven million units.
In addition, the GSMA said sales of new cars are expected to reach more than 100 million by 2018, more than 35 million of which will be shipped with embedded mobile technology, representing a 31 per cent penetration rate and outstripping growth of alternative connectivity means. Of this 35 million, almost half will be shipped to Europe.
By contrast, 21 million cars (18 per cent) will be fitted with smartphone integration and 10 million (nine per cent) with tethered solutions.
GSMA chief marketing officer Michael O’Hara said: “Embedding mobile technology in cars will not only save lives, but also drive a range of new services and provide a significant revenue opportunity for the mobile and automotive industries.
“We are in the midst of a connected car revolution and it is vital that the mobile and automotive industries work together to deliver scalable and pervasive connected experiences and ensure this market reaches its potential.
“The growth of the connected car market is also being aided by key initiatives such as the GSMA’s Connected Car Forum, where leading mobile operators and automakers come together to overcome barriers to growth and to improve the speed and uptake of telematics and infotainment services.
“As a result, not only will mobile operators play a major role in connecting all new cars by 2025, they are also well positioned to move further up the value chain and provide innovative value added services to their customers.”