150 million cars will be connected to the Internet by 2020
In just five years, most cars and trucks will be connected to the Internet, according to a report from Gartner Inc. By 2020, about 150 million vehicles will be connected via Wi-Fi, and 60% to 75% of them will be capable of consuming, creating and sharing Web-based data, the report states.
The added connectivity will let carmakers change their business model from pure hardware to tech innovators that draw income from mobile apps. To do that, however, vehicle manufacturers will need to team up with companies such as Google, Apple and Samsung.
By 2018, two automakers will have announced plans to become technology companies and expand their connected-vehicle value experiences to other industries and devices. And by 2020, at least one auto company will achieve 10% of its total revenues from connected mobility and service offerings so says Gartner. As the amount of information being fed into in-car head unit or telematics systems grows, vehicles will be able to capture and share not only internal systems status and location data, but also changes in surroundings in real time.
In the future, apps will be tailored to in-vehicle services, such as scheduling service appointments, driver-related content such as real-time navigation updates, and streaming music and video services and even the ability to shop online or find and then pay for parking online. Also driving statistics can be anonymized and used to improve roadways. For example, analysis of vehicle tracking data could play a role in efforts to improve intersections where there are a lot of accidents.
The in-vehicle navigation service TomTom, for example, already routinely provides anonymized information to some police forces.
But once mobile devices are connected to car infotainment systems and cars are connected to the Internet, vehicles will become a rich source of data for manufacturers, marketers, insurance providers and the government.
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