250 million connected cars on road by 2020

Thondacarpethe connected car market in snowballing. Last year, Gartner predicted 150 million connected cars on the road by 2020, the latest reports predicts 250 connected cars on the road within in five years.

Gartner predicts that one in five vehicles on the road worldwide will have some form of wireless network connection by 2020. This vehicle connectivity will effect telematics, automated driving, infotainment and mobility services.

The connectivity allows systems to share information with other cars and with roadside infrastructure to make intelligent traffic systems possible and features for self-driving vehicles. Cars will be able to report hazards and traffic conditions, select routes to avoid congestion, coordinate with traffic signals to optimize traffic flow and travel in caravans to minimize energy consumption.

Connected car wireless connectivity features are expanding from luxury cars to high volume midmarket models. Consumers accustomed to advances in digital content will want more sophisticated infotainment systems creating markets for faster processors, graphics accelerators and new Heads Up Displays. There is also the possibility of new usage models and alternatives to car ownership.

On top of that connected kitchens will save contribute to about 15% savings in the food and beverage industry, while leveraging big data analytics. Better yet, a connected kitchen connected to your car could remind you when the milk is expiring and you need to buy more and advise you where to buy it for the lowest price.

More information is contained in the Gartner report “Predicts 2015: The Internet of Things.”

For the 2014 CES show Gartner predicted, by 2016, the majority of average car buyers for a standard brand vehicle in mature markets will expect at least basic Web-based information availability in their new automobiles.  By year-end 2020, Gartner predicts that more than 80 percent of all new vehicles sold in mature automobile markets, such as the United States, will offer connected-vehicle functionality.

Gartner also noted previously, the era of  connected cars ill help the automotive industry to redefine value propositions for its customers by going beyond realizing all profits at the point of sale when a customer purchases a vehicle.

The ability to be connected and talk to a consumer while driving represents a unique and truly captive audience to allow the automotive industry to move into an intermodal-transportation-solution-provider business model that offers all kinds of transportation solutions plus adjacent Infotainment value propositions.