Italian connected car love and growing appreciation is driving growth in the Internet of Things (IoT) with an 11 percent increase in its value reported for last year. The number of mobile-connected objects in Italy has now reached six million and is growing fast, according to a new report published by the School of Management of the Politecnico of Milan. In Italy, the market for objects that communicate through a cellular network, the study says, is now worth €900m compared to €810m in 2012, with a positive outlook for the near future thanks to the growing popularity of connected cars and smart home products.
Cars make up largest chunk of mobile-connected objects
The largest chunk of mobile-connected objects, the report states, is made of cars which account for 47 percent of the objects and 31 percent of the total market value. It’s also the fastest-growing segment: more than 35 percent year-on-year.
Currently, most of the applications for this market involve location-based services for private vehicles and the recording of driving metrics through in-car GPS as part of the market for usage based insurance (UBI).
“Right now the market is being driven by consumers who are willing to let insurance companies collect data on their driving through a connected box in exchange for a discount on their insurance,” Miragliotta said.
In the next few years, he said, manufacturers will bring IoT products so far only found on high-end vehicles to more affordable cars. The market will get a further fillip from the EUs eCall initiative, which mandates that, starting from October 2015, each new vehicle should be able to automatically place a call to the emergency services.
All these factors combined will make ‘smart’ cars more common: according to the Politecnico’s research, they should grow from eight percent of all cars today to 20 percent in 2016, meaning more than 7.5 million ‘intelligent’ automobiles will be driving on Italy’s roads.