A new report predicts that half of consumer owned and operated vehicles will be linked to the Internet of Things within five years. And that connectivity will top horsepower as a requirement for buyers.
“OEMs [original equipment manufacturers] will begin competing on the level of convenience that their in-vehicle services offer,” says author Sam Barker in the report for Juniper Research. “Soon, level of service will be more important to drivers than vehicle performance itself.”
The Consumer Connected Cars: Applications, Telematics & V2V 2017-2022 report says that V2X, or vehicle-to-everything, demand and capabilities are growing rapidly.
Another emerging opportunity: V2I, or vehicle-to-infrastructure.
The market for such connectivity will reach nearly $50 billion a year with half of vehicles being brought into the IoT world by 2022.
The market opportunity also means more demands for OEMs, Juniper adds.
“OEMs must prepare to capitalize on the impending opportunities of V2X services, such as smart parking and automated fuel payments,” Juniper says.
“North America will emerge as the leading region in this space, accounting for 39% of all end-user spend on connected car commerce platforms by 2022,” Juniper adds.
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