A new report from Juniper Research reveals that by 2022, 50% of consumer vehicles on the road will have at least one connectivity service, such as telematics, V2X (vehicle-to-everything) communications, or connected car commerce services.
The new research, Consumer Connected Cars: Applications, Telematics & V2V 2017-2022, found that revenues from consumer connected car services will rise from US $18.4 billion in 2017 to US $49.2 billion in 2022, a 21.6% CAGR (compound annual growth rate). Increasing industry involvement from OEMs and network operators, combined with the development of new V2X services, will be key drivers for future growth.
(TOP: A connected car dashboard. Photo: Gemalto blog).
New Services ~ New Revenue Streams
The research found that automotive OEMs must prepare to capitalise on the impending opportunities of V2X services, such as smart parking and automated fuel payments. North America will emerge as the leading region in this space, accounting for 39% of all end-user spend on connected car commerce platforms by 2022. It argued that stakeholder investments and public-private partnerships will be as critical to future V2I (vehicle-to-infrastructure) services as OEM involvement.
Additionally, the report found that in-vehicle services must remain specific to the vehicle or risk being viewed as unnecessary and invasive. Lucrative services will therefore be restricted to fuel payments, smart parking and toll roads. However, the report highlighted that early rollouts of infrastructure could take up to 5 years to implement, allowing stakeholders time to cultivate pertinent use cases.
Connected Car Commerce Opportunities
Whilst vehicle sales will limit the take-up of vehicle-integrated commerce services, the report found that high average spend per user will offer a significant revenue opportunity to entice stakeholders. Juniper predicted that total consumer spend over connected car commerce platforms will exceed US $100 billion by 2022.
“OEMs will begin competing on the level of convenience that their in-vehicle services offer” remarked research author Sam Barker. “Soon, level of service will be more important to drivers than vehicle performance itself.”
Our latest Consumer Connected Cars analysis focuses on the OEM (Original Equipment Manufacturer) and after-market telematics industry, in-vehicle infotainment and insurance telematics.
The research addresses the future of emerging technologies including V2V (vehicle-to-vehicle) and connected car commerce services. It consists of Market Trends & Competitive Landscape; 5 Year Market Sizing & Forecasts and an Executive Summary & Core Findings.