Monday, September 21, 2015

Connected Car Hardware, Software and Services Will Hit $150 Billion in 2020

It perhaps is a reasonable bet that revenue from connected car applications and services will change over the next decade.

Up to this point, connected-safety features have generated the most revenue of all of today's connected-car services, at $13 billion. In part, that is because few other services have been created and marketed.

But safety will lose its spot as the top revenue stream to driver assistance in 2017, eclipsing $60 billion in annual revenue. Driver assistance includes such functions as self parking.

Still, connected-safety features will bring in $44 billion in 2020, Business Insider predicts. Safety features  include alerting customers of road conditions, such as severe weather or an approaching hazard, as well as collision-avoidance.

Entertainment is one of the most popular features available for the connected car, but it is not a major revenue driver. The category will account for only $13 billion in revenue in 2020. Entertainment features include integrations with apps such as Pandora, Yelp, and Facebook.

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