Connected car service provider’s revenue to grow 300% by 2018 or so says latest report from market research firm Infonetics Research.
Infonetics Research has just released excerpts from its study which forecasts revenue derived by service providers for the connectivity and other basic value-added services they provide to the automotive, transport, and logistics to more than triple from 2013 to 2018, to $16.9 billion worldwide.
This represents a 2013–2018 compound annual growth rate (CAGR) of 25%. It is expected to be nearly 21 times the growth rate expected for traditional mobile voice and data services during the same timeframe
“Unlike the smart grid vertical, which favors 2G technology to keep usage cheap, or connected cameras, which require at least 3G and ideally 4G technology for good quality, the connected car vertical is able to make use of every generation of cellular technology available. This means that just about any communications service provider, whether they have 2G, 3G, 4G, LTE or a combination of technologies, can find a niche in the connected car space,” explained Godfrey Chua, directing analyst for M2M and the Internet of Things at Infonetics Research.
Chua added: “Next-gen 3G and 4G technologies are paving the way for improved interactivity, video, real-time analytics, and other smart apps in the connected car space—and thus a greater probability for service adoption. LTE will be the fastest-growing cellular technology in cars, expanding 135% annually between 2014 and 2018. A major boon will come from AT&T’s agreement with GM to deploy LTE for the OnStar service.”