Proving the Business Case for the Internet of Things

Connected car revenues to reach $20 billion by 2018: Juniper

Iain Morris
May 29, 2014
 
Revenues from connected car services are expected to reach nearly $20 billion by 2018, according to a new study from Juniper Research, with areas like car servicing, telematics-enabled big data and enhanced customer service all contributing to the overall figure.

Juniper reckons the so-called “soft revenues” that come from these add-on services will form a key part of the future market, allowing carmakers to generate revenues throughout the lifetime of a vehicle, rather than just at the point of sale.

Regulations in Europe and Latin America requiring vehicles to include SIM cards will also spur revenue growth, while “split billing” is expected to become increasingly important.

“The ability to split the telematics bill, pioneered by major operators and systems integrators will have a positive impact on the telematics market,” said Juniper’s Anthony Cox. “Granular billing for infotainment and other services will lead to new business models.”

Juniper also expects app integration into the vehicle – through smartphone tethering and direct integration into the head unit – to receive a boost from the launch of services like CarPlay, Apple’s (Cupertino, CA, USA) in-vehicle offering.

Among Juniper’s other findings are that in-vehicle apps will continue driving down the price of vehicle manufacturers’ own embedded infotainment services, while the use of 4G LTE will become increasingly widespread in development markets for telematics and infotainment, particularly in North America and Europe, despite higher module costs.
 
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