Android Auto and Apple CarPlay to drive connected car market to $600m by 2020

(c) Alphan

A new Juniper Research study argues the use of connected car entertainment, such as Apple CarPlay and Android Auto, will help push the market to $600 million (£420.5m) by 2020.

The report, entitled “Consumer Connected Cars: Telematics, Insurance & In-Vehicle Applications 2015-2020”, argues that following this, a range of new applications will come into being in the area of in-vehicle utilisation such as advanced traffic solutions, route optimisation, and in-vehicle gaming.

On-board systems with integrated wireless functionality are expected to surpass systems requiring a smartphone. OEMs will look to benefit from more independence, better integration with other in-vehicle systems by including directly integrated units such as Apple CarPlay, Android Auto and BlackBerry’s QNX.

The research argues that OTT (over the top) players such as Apple, Amazon and Google will play a key role in the development of the connected car space as end users demand more technology in their vehicles. Efforts undertaken by Apple and Google in the autonomous driving systems segment are testament to this. The integration of the connected car and smart home segments is another area to watch out for as Amazon recently said that their voice controlled smart home service, Echo, will now be able to interact with Ford’s SYNC in-vehicle system.

The challenge of high consumer expectations is set to come along with the range of new OTT services. Apple and Google are set to offer a new application ecosystem for the vehicle environment where consumers can download new services and functionalities directly through the head unit. As a result, consumers will demand the same level of speed, functionality and features that they are used to on account of the smartphone ecosystem.

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21 Jul 2016, 2:26 p.m.

CarPlay and Android Auto will load the cellular network, especially in rush-hour time. 5G solutions that rely on smaller cells are not viable in highway case. This puts carriers into tough position - Apple & Google are enjoying this (as you rightfully pointed out), and carriers need to solve the problem without getting paid. How would that work?