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GSMA predicts rise in connected car sales

Trade association claims the connected car market could be worth around €40 billion by 2018.

14 Jun 2013

The installation of embedded mobile technology in automobiles will lead to the creation of a 40 billion connected car market by 2018.

This is according to new research commissioned by the mobile operator trade association GSMA.

Its findings suggest the prevalence of embedded mobile technology in the motoring industry is replacing smartphone integration and tethered solutions within new cars.

We are in the midst of a connected car revolution and it is vital that the mobile and automotive industries work together to deliver scalable and pervasive connected experiences.

"Embedding mobile technology in cars will not only save lives, but also drive a range of new services and provide a significant revenue opportunity for the mobile and automotive industries," said Michael O'Hara, chief marketing officer at GSMA.

The European Commission has helped boost the development of this trend with their push for the creation of an eCall in-vehicle emergency service, which alerts local emergency services after a collision, providing location and vital impact information.

The Commission has dictated that all new cars in member states must be fitted with the system from 2015, with industry estimates predicting that eCall sales will hit 7 million units by the following year.

Globally, new car sales are predicted to reach 100 million by 2018, and 35 million of those are expected to feature embedded mobile technology, generating revenue of more than 40 billion.

However, the inclusion of embedded mobile technology is not the only thing that classifies a car as connected, as automobiles in this category can be connected to the internet in other ways.

GSMA claims, because of regulatory mandates such as eCall, safety and security will be the most common service to feature in connected cars, with the prediction being that 41.7 million will feature this kind of technology by 2018.

Social media, news, weather and music streaming are expected to be the second most common, with 32.1 million cars expected to ship with the technology, and navigation will be the least embedded service at 5.12 million cars.

"We are in the midst of a connected car revolution and it is vital that the mobile and automotive industries work together to deliver scalable and pervasive connected experiences and ensure this market reaches its potential," said O'Hara.

By 2025 most, if not all, new cars will be embedded with mobile technology ranging from SIM to internet connecting capabilities.