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The Evolution of Connected Cars

Lux Research
February 24, 2020

Our new report, “Key Players and Business Models in the Connected Car,” looks into the complex ecosystem of connected car players and helps companies navigate the opportunities and challenges on the road ahead.

As recently as the mid-2000s, the concept of a connected car was limited to maps and music. Now, as we begin a new decade, the market for hardware and software systems inside these connected vehicles is expected to reach $12.7 billion by 2030.

The connected car marketplace – and the opportunities surrounding it – has changed significantly since its hyper consumer- and leisure-focused infancy. Cellular connectivity, cloud management, data access, and data analytics make up the key pillars of the next frontier.

Just as smartphone app developers learned to use advertisements to supplement revenue from app users, connected car services need to find revenue sources other than drivers themselves. Looking ahead, connected car use cases will be increasingly centered around autonomous driving and cater more toward businesses than consumers.

While we anticipate the global market for connective technologies inside of cars to reach almost $13 billion by 2030, it is likely that the market cap will grow even higher due to increased investment in related technologies outside the car, such as cloud computing and connected infrastructure.

In advance of this growth in market share, the commercialization of connected car technologies has already begun in earnest. The Lux Tech Signal indicates that innovation interest in connected cars is more than double the average of the 2,500 technologies that Lux tracks. The influx of activity surrounds 5G capability, vehicle-to-everything communication (V2X), and driverless cars.

For more information about the rapid evolution of connected car technologies and insight into what the future holds for this emerging market, you can download the report’s executive summary here.






FURTHER READING:

- Download the Executive Summary: Key Players and Business Models in the Connected Car

- Download the Executive Summary: How to Avoid AI Failures

- Press Release: Beyond the AI Hype: Four Factors Businesses Should Consider Before Investing in AI

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