According to ABI Research, a technology market advisory group, connected car sales will increase by 20% in 2021 and a compound annual growth rate (CAGR) of 10.4% between 2020 and 2026.
New car sales in 2020 were lower than expected, but down 15%. Consumers recovered in late 2020 and in the first quarter of 2021. Catch automakers whose daily supply is declining.. End users are becoming more demanding on infotainment systems. According to the ABI, there is a keen interest in connected cars and opportunities for OEMs to miss.
One example is Hyundai’s partnership with Nvidia to standardize AI-based infotainment systems. According to ABI research, connected cars are reshaping the industry with more powerful infotainment systems. Nvidia, Qualcomm, Xilinx, NXP, and TSMC have AI-based enhanced platforms with plenty of room for updates and apps.
Vehicles with infotainment will increase by 23% in 2021 and return to pre-pandemic levels, ABI claims. They say this is due to increased penetration into emerging market areas. When the Ford-Google alliance moves to the Android operating system, its penetration will double in 2023 and 2024. Google’s advantage arose due to inadequate reviews of embedded systems and the predominance of existing smartphones.
Currently, connected car subscriptions are not profitable. Sensor data marketplaces, OTA updates, and in-vehicle commerce have the potential to monetize connectivity during the vehicle life cycle. To realize this potential, ABI advised that OEMs need to provide a more compelling user experience to increase touchpoints with embedded systems.
Tesla, Mercedes-Benz, Volvo / Polestar, Harman, Visteon, and Aptiv are OEM and Tier companies with significant investments in connected car technology. The source was the ABI Research Connected Car Report. The ABI provides technology companies, innovators, and decision makers with research and guidance focused on technologies that are changing the industry, economy, and workforce. Their aim is to help clients stay ahead of the market and its competition, a high goal in the midst of chip shortages and diverse platforms.
Connected car sales up 20% in 2021
Source link Connected car sales up 20% in 2021