Will Connected Car be the "Next Big Thing?"

The broad trend in the information technology business, and for many consumer products, is that more value is generated from services rather than the core products. That is likely going to be true in the auto business as well, with revenues and profits shifting from hardware (cars) to software, from products (vehicles and accessories) to services.

Mobility services, though perhaps shrinking as a percentage of total ecosystem revenues, might well increase as a percentage of ecosystem profits. That is one reason some tier-one mobile operators are so focused on connected car services.

For AT&T and Verizon, the carrot is that the United States is expected to be the single largest connected car market in 2022.






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