The connected car market will reach a value of $100 billion USD in 2019, according to a new forecast from the Korea Institute for Industrial Economics & Trade (KIET). And in 2020, connected cars will make up 55 percent of the traffic on the road.
As BusinessKorea reports, the forecast is one of ‘exponential’ growth for the fast-emerging market, which will include a number of products and services new to the automotive sector, including in-car voice recognition systems and insurance policies based on users’ driving habits. Meanwhile, the connected car market’s “segments covering telematics, mobile services and vehicular wireless communications in particular are likely to show a rapid growth,” BusinessKorea reports.
That’s good news for tertiary players like Gemalto, whose Trusted Services Hub is being used to provision digital car keys for Mercedes Benz’s newest line of E-Class cars; and for Gentex and Delta ID, who have worked together to develop iris scanning technology to be embedded in the rearview mirrors of smart cars. But the overall growth is also promising for the major car makers that are showing increasing interest in bringing such innovative technologies to their offerings, with Toyota having recently partnered with Microsoft to bring its IT solutions to its cars, and Ford having just announced a new CEO who appears poised to intensify the company’s smart car efforts.