5 Connected Car Business Opportunities for 2018
As the auto industry transitions into the age of Internet-connected vehicles, both challenges and opportunities await automakers and the plethora of technology providers that will help them along the journey. The new automotive revolution will drive connected car business development for years to come.
Connected Car Market Size
Connected vehicles are filling dealer lots at an increasing rate. Industry experts predict a quarter billion of them will be on the road by 2020, with market value reaching $141 billion globally by the same year. Contrast that with the paltry $24 billion market in 2014 and you can see a significant trend.
Whether the connected car industry remains a nascent market, or has moved beyond the definition, is up for debate. What is certain is that the auto industry is on the verge of transformation, and that the changes it experiences will create business opportunities well beyond the showroom floor.
Business Opportunities in the Connected Car Ecosystem
The connected car ecosystem is an ever-increasing collection of technologies that underpin the growth of the connected car industry. Bringing order to such a dynamic array of disciplines is not straightforward. One could diagram the vehicle IoT ecosystem in a number of ways, including OEM vs. third-party solutions, onboard vs. external solutions, and so on.
For the purposes of our discussion, we will explore five major components of the ecosystem, along with a few of its subparts, to see what business opportunities they present for the year ahead. Since the full scope of the connected car ecosystem is beyond what a single article can fully address, we will focus on opportunities that are either really new, or not so new but still really hot.