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The connected automotive infotainment systems market is forecast to grow at a compound annual growth rate of 33.8 percent over the next five years, driven by connected navigation and in-car Wi-Fi, according to ABI Research.
The report, Automotive Infotainment Market Research, finds that “developed regions, which accounted for more than 60 percent of shipments in 2014, will account for only 37.4 percent of shipments in 2020.” More than 50 percent of all shipments in 2020 will be in the Asia-Pacific region, according to ABI.
A Frost & Sullivan report, 2015 Outlook of the Global Connected Car Market , finds that 90 percent of OEMs in North America have deployed connected telematics solutions, making it the leading market for related innovations. However, mandates around eCall, vehicle safety and driver distraction will drive telematics use in Europe, according to the market research firm.
The big technologies driving the global connected automotive market in 2015 include advanced infotainment systems, over-the-air (OTA) updates, big data analytics, mobility services and in-car security, with human machine interface (HMI) input and output solutions and heads up display (HUD) ready to take off, according to Frost & Sullivan.
The global connected vehicle system market is forecast to grow from $96.3 million in 2016 to $36.6 billion by 2025, according to Navigant Research.
The Navigant report, focusing on the key components of vehicle-to-external communications (V2X) technologies finds that the big push is driven by demand for “safer cars with lower emissions and energy consumption.”
“According to the U.S. Department of Transportation, adding V2X communications could help prevent 70 to 80 percent of vehicle crashes,” said Sam Abuelsamid, senior research analyst with Navigant Research, in a press release. “Connected vehicles have enormous potential to provide drivers with increased situational awareness of upcoming hazards and congestion.”
In addition, it’s driving the development of autonomous and plug-in electric vehicles “that rely on real-time data to vehicles, drivers, and pedestrians through connected vehicle systems such as V2X,” according to Navigant.
At the same time, there is big demand for connected infotainment.
“This growth in connected infotainment is largely consumer driven, with OEMs and Tier 1 suppliers both recognizing the need to provide an integrated digital experience which is consistent and compatible with the remainder of the end-user’s consumer electronics,” said James Hodgson, ABI’s research analyst, in a press release.
“By leveraging as many of the user’s smartphone capacities as possible, smartphone integration allows the inclusion of a number of infotainment features at a lower marginal cost. This makes it an ideal solution for price-sensitive vehicle segments,” Hodgson continued. “In more luxurious vehicles, OEMs will feel compelled to include smartphone integration in order to maintain relative superiority. However, it is unlikely systems such as Android Auto, Apple CarPlay and MirrorLink will serve as the vehicle’s sole infotainment system. Rather, they will complement the OEM’s own proprietary system, as is the case with the new Volvo XC90.”
Microchip Technology Inc. announced this week that the Volvo Car Group migrated from the MOST25 to the latest MOST150 standard in its new Volvo XC90 model, using Microchip's OS81110 Intelligent Network Interface Controllers (INICs). The reason: “Volvo Cars needed to enable its latest infotainment systems with the ability to carry Ethernet packets.” MOST150 is said to be the first and only standard to provide an automotive-ready physical layer for Ethernet packet transport inside cars and in accordance with the IEEE 802.3 Ethernet specifications.
Microchip said Volvo Cars is the fourth automaker to adopt MOST150 technology for their high-speed infotainment network.
The MOST Cooperation standards give automotive OEMs and their Tier 1 suppliers a supported “methodology for defining and implementing high-bandwidth infotainment and Advanced Driver Assistance (ADAS) systems, including a standard physical layer and a robust method for system management and control with superior reliability and Quality of Service (QoS).”
Despite many OEMs set to equip the majority of their consumer vehicles shipping in 2020 with embedded connectivity, ABI analysts expect a significant number of vehicles to rely on smartphone integration for their connectivity. ABI forecasts a CAGR of 60.6 percent between 2015 and 2020 for telematics systems supporting smartphone integration.
"While embedded connectivity is on the rise due to specific regulations related to telematics, shared data plans and smartphone-based connectivity will also gain prominence in the global mass market," agreed Ramnath Eswaravadivoo, Frost & Sullivan’s automotive & transportation research analyst in a press release. "OEMs wanting to compete with free smartphone-based navigation solutions are offering connected capabilities with dynamic re-routing, real-time traffic and point of interface services."
A case-in-point: Hyundai announced this week that it is the first automaker to launch Android Auto on production vehicles, premiering on the 2015 Sonata with Navigation.
Here’s how it works:
"Owners will need the Android 5.0 "Lollipop" operating system or later, and the Android Auto companion app on their compatible phone to integrate Android Auto into Sonata's screen and controls. A micro USB cable is required to connect the phone to the car's USB port. The first time an owner plugs his or her phone into their parked Sonata, the phone will prompt the download of the Android Auto companion app from the Google Play. Users of Android Auto will instantly recognize familiar Android phone applications, such as Google Maps, Google Now, messaging, phone calling and Google Play Music upon connecting their Android phone to their Hyundai vehicle. These applications can be controlled by voice, steering wheel controls and touchscreen. Android Auto also will offer many popular third-party audio apps that owners have on their phones, including iHeartRadio, Spotify, TuneIn, NPR, Stitcher, Skype, TextMe and many more. Owners can find out up-to-date information about phone compatibility at https://support.google.com/androidauto."
However, like all connected systems, there is big data to be mined from these systems that can drive additional services and revenues.
"Meanwhile, the large-scale acceptance of big data and predictive analytics will bring in new service and revenue opportunities," said Praveen Chandrasekar, Frost & Sullivan’s automotive & transportation research manager, in a press release. "Harnessing vehicle data into the next generation of advanced diagnostics will enable OEMs to lengthen customer relationships to more than than three years and tap into the longer-term maintenance and service business."
