New data from market research firm Infonetics Research paints a promising portrait of where connected car service providers are headed.
Straight for the bank.
The new Connected Car M2M Connections and Services market size and forecasts report suggests big earnings are on the way for automakers that stand behind the new technologies being introduced.
“Unlike the smart grid vertical, which favors 2G technology to keep usage cheap, or connected cameras, which require at least 3G and ideally 4G technology for good quality, the connected car vertical is able to make use of every generation of cellular technology available,” says Godfrey Chua, directing analyst for M2M and The Internet of Things at Infonetics Research.
“This means that just about any communications service provider, whether they have 2G, 3G, 4G, LTE or a combination of technologies, can find a niche in the connected car space,” Chua adds. “Next-gen 3G and 4G technologies are paving the way for improved interactivity, video, real-time analytics, and other smart apps in the connected car space—and thus a greater probability for service adoption.”
LTE will be the fastest-growing cellular technology in cars, expanding 135% annually between 2014 and 2018, the analyst explains.
The bottom line? Infonetics expects revenue derived by service providers for the connectivity and other basic value-added services they provide to the automotive, transport, and logistics (a.k.a. connected car) segment to more than triple from 2013 to 2018, to $16.9 billion worldwide.