Revenues from consumer connected car services will increase to $49.2 billion in 2022, growing at 21.6 percent CAGR, from $18.4 billion in 2017, said Juniper Research in Consumer Connected Cars: Applications, Telematics & V2V 2017-2022 report.
The technology report said that 50 percent of consumer vehicles on the road will have at least one connectivity service, such as telematics, V2X (vehicle-to-everything) communications, or connected car commerce services by 2022.
Total consumer spend over connected car commerce platforms will exceed $100 billion by 2022.
Industry involvement from OEMs and network operators, combined with the development of new V2X services, will be key drivers for future growth of connected cars.
The report suggested that automotive OEMs must prepare to capitalize on the opportunities of V2X services, such as smart parking and automated fuel payments.
North America will be the leading region in V2X services, accounting for 39 percent of all end-user spend on connected car commerce platforms by 2022.
Early rollouts of infrastructure for in-vehicle services for fuel payments, smart parking and toll roads could take up to 5 years to implement, allowing stakeholders time to cultivate use cases.
While vehicle sales will limit the take-up of vehicle-integrated commerce services, high average spend per user will offer a significant revenue opportunity to entice stakeholders.
“OEMs will begin competing on the level of convenience that their in-vehicle services offer,” said research author Sam Barker. “Soon, level of service will be more important to drivers than vehicle performance itself.”