Over the past few years we've seen automakers start to offer in-car apps, similar to what consumers have come to expect from their smartphones. Toyota added popular services such as Pandora, OpenTable, MovieTickets.com and Bing Search to their cars via Entune. BMW, Mercedes and many other carmakers are quickly growing their library of apps as well, and a new study suggests why. Juniper Research, a UK-based provider of research and analytical services to the global hi-tech communications sector, said in a new report titled Connected Cars: Automotive Telematics & In-Vehicle Infotainment 2013-2017, "the market for in-vehicle apps will be worth over $1.2 billion by 2017."
The report goes on to point out that there will be downward pressure on the price of carmaker infotainment systems as the app ecosystem matures.
"The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer," says the report's author Anthony Cox. He notes that tethering a data connection will become even more widespread. "Smartphone tethering will enable the creation of a wealth of apps for the vehicle just as it did for the smartphone," Cox added.
While consumers should enjoy less expensive, more feature-rich infotainment systems, there is also money to be made for the car manufacturer. The report goes on to say that, "'Big Data' derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers." Whatever that data might be is not yet clear; however, we expect consumers to demand strict guidelines on privacy.
The report goes on to point out that there will be downward pressure on the price of carmaker infotainment systems as the app ecosystem matures.
"The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer," says the report's author Anthony Cox. He notes that tethering a data connection will become even more widespread. "Smartphone tethering will enable the creation of a wealth of apps for the vehicle just as it did for the smartphone," Cox added.
While consumers should enjoy less expensive, more feature-rich infotainment systems, there is also money to be made for the car manufacturer. The report goes on to say that, "'Big Data' derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers." Whatever that data might be is not yet clear; however, we expect consumers to demand strict guidelines on privacy.
Revenues from 'Smart Vehicle' apps to Rise Ten-fold by 2017 as Car Manufacturers Embrace new Infotainment Ecosystems
In-car App Market to be worth over $1.2 billion within in five years
Hampshire, UK – 20th May 2013: The Smart Vehicle will become the new frontier for app developers over the next five years, finds a recent Juniper Research report, which forecasts that the market for in-vehicle apps will be worth over $1.2 billion by 2017.
Advancements in automotive connectivity standards such as MirrorLink and ever higher smartphone ownership will create foundations allowing the connected car ecosystem to flourish, particularly in developed North American and Western Europe markets, finds the report.
Downward Price Pressure - Consumer Benefits
The new report, Connected Cars: Automotive Telematics & In-Vehicle Infotainment 2013-2017, found that there will be a downward pressure on the price of vehicle manufacturers' own embedded telematics infotainment services - as the in-vehicle app ecosystem matures: "The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer," says the report's author Anthony Cox, noting that smartphone tethering will enable the creation of a wealth of apps for the vehicle just as it did for the smartphone.
Embedded Telematics
The market for embedded telematics systems in both the commercial and consumer areas will also see robust growth as consolidation among regional commercial telematics players begins to give an indication of which players will become a global force in telematics.
Further Findings from the Report Include:
• "Big Data" derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers.
• The wide-spread deployment of V2V (vehicle to vehicle) and vehicle to infrastructure (V2I) technologies remains a long way off, though trials of are on-going in some markets
• Insurance telematics is reaching the point of wide-scale deployment particularly in certain markets such as the US, Italy and the UK
The whitepaper, 'Connected Cars ~ Full Speed Ahead' and further details of the full study can be downloaded from www.juniperresearch.com.
In-car App Market to be worth over $1.2 billion within in five years
Hampshire, UK – 20th May 2013: The Smart Vehicle will become the new frontier for app developers over the next five years, finds a recent Juniper Research report, which forecasts that the market for in-vehicle apps will be worth over $1.2 billion by 2017.
Advancements in automotive connectivity standards such as MirrorLink and ever higher smartphone ownership will create foundations allowing the connected car ecosystem to flourish, particularly in developed North American and Western Europe markets, finds the report.
Downward Price Pressure - Consumer Benefits
The new report, Connected Cars: Automotive Telematics & In-Vehicle Infotainment 2013-2017, found that there will be a downward pressure on the price of vehicle manufacturers' own embedded telematics infotainment services - as the in-vehicle app ecosystem matures: "The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer," says the report's author Anthony Cox, noting that smartphone tethering will enable the creation of a wealth of apps for the vehicle just as it did for the smartphone.
Embedded Telematics
The market for embedded telematics systems in both the commercial and consumer areas will also see robust growth as consolidation among regional commercial telematics players begins to give an indication of which players will become a global force in telematics.
Further Findings from the Report Include:
• "Big Data" derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers.
• The wide-spread deployment of V2V (vehicle to vehicle) and vehicle to infrastructure (V2I) technologies remains a long way off, though trials of are on-going in some markets
• Insurance telematics is reaching the point of wide-scale deployment particularly in certain markets such as the US, Italy and the UK
The whitepaper, 'Connected Cars ~ Full Speed Ahead' and further details of the full study can be downloaded from www.juniperresearch.com.
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