Vehicle Connectivity Will Advance To Keep Pace With Consumers' Use of CE Devices, ABI Says

A “rapid expansion” in navigation and in-car Wi-Fi will drive a compounded annual growth rate (CAGR) of 34 percent over the next five years in the connected infotainment systems market, a report from ABI Research said. More than half of the growth will come from the Asia-Pacific region by 2020, with 37 percent coming from developed regions, ABI said. Growth is largely consumer-driven as OEMs and tier one suppliers recognize the need to provide a digital experience that’s “consistent and compatible” with end users’ other consumer electronics, analyst James Hodgson said. Although many OEMs have committed to equipping the majority of their consumer vehicles in 2020 with embedded connectivity, a “significant number” will rely on smartphone integration for connectivity, ABI said. Shipments of telematics supporting smartphone integration are forecast to grow at a CAGR of 61 percent between 2015 and 2020, Hodgson said. Leveraging smartphone capabilities allows OEMs to include infotainment features at a lower cost, he said. In luxury vehicles, OEMs will likely feel compelled to include smartphone integration to “maintain relative superiority,” Hodgson said. It’s “unlikely” that platforms such as Android Auto, Apple CarPlay and the Car Connectivity Consortium’s MirrorLink will be vehicles’ sole infotainment systems but instead will complement an OEM’s proprietary system, Hodgson said, citing the Volvo XC90 model as an example.