Investors and entrepreneurs on the lookout for the next big opportunity just could be considering the so-called “connected car market.” As automakers strive to make motor vehicles smarter, apps makers and communications companies are linking up. But how big is the opportunity? According to research firm Allied Market Research, the market will be …

How about $141 billion?

So the firm concludes in its new “Global Connected Cars Market (Technology, Connectivity Solutions, Application, Products & Services and Geography)” analysis.

The firm forecasts growth of 32.7 percent compound annual growth rate.

So what are the drivers?

“The availability of faster communication networks, advanced connectivity solutions and a user friendly interface should drive global connected car market,” the report says. “Also, an enhanced driving experience, offered by connected cars and favorable rules and regulations across numerous countries will fuel the market growth.”

Governments are helping drive demand with the European Union mandating an “Ecall system” for vehicles manufactured in 2015 and beyond.

The U.S. may mandate M2M (machine-to-machine) connectivity down the road as well. 

Other key findings:

  • By 2020, integrated and embedded solutions will be amongst the most popular connectivity solutions in the connected car market and would together account for about 80% of the overall market
  • North America and Europe would prove to be the most lucrative markets in terms of revenue generation, whereas the Asia-Pacificmarket will grow fastest
  • Navigation and infotainment services together occupied almost 80% of the market share in 2013 and would maintain steady growth during the forecast period
  • Growing demand for connectivity solutions within the vehicle and the rising number of tech savvy youth are two prime factors that will drive the global connected cars market

For more information, check out the report summary.