A new report from Juniper Research predicts that by 2022, 50 percent 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 report, “Consumer Connected Cars: Applications, Telematics & V2V 2017-2022,” also predicts that revenue from consumer connected-car services will grow from $18.4 billion in 2017 to $49.2 billion in 2022, expanding at a 21.6 percent 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, Juniper Research asserts.
New Revenue Streams
The research found that automotive OEMs must prepare to capitalize on the impending opportunities of V2X services, such as smart parking and automated fuel payments.
North America will emerge as the leading region in the space, accounting for 39 percent of all end-user spend on connected-car commerce platforms by 2022, according to the report. Stakeholder investments and public-private partnerships will be as critical to future V2I (vehicle-to-infrastructure) services as OEM involvement, the report explains.
Additionally, the report asserts that in-vehicle services must remain specific to the vehicle or risk being viewed as unnecessary and invasive. Consequently, lucrative services will be restricted to fuel payments, smart parking and toll roads.
“OEMs will begin competing on the level of convenience that their in-vehicle services offer,” said research author Sam Barker. “Soon, level of service will be more important to drivers than vehicle performance itself.”