Skip to main content

Connected Car Commerce Revenue will Reach $100B

The notion of Connected Cars refers to devices installed in a vehicle which allow Machine-to-Machine (M2M) communication. Moreover, M2M is typically wireless communication between two single machines or systems, without requiring any human interaction.

In relation to vehicle telematics, this capability enables data to be sent from the vehicle to another location and thereby used for vehicle conditioning, or to monitor the vehicle driver's behavior.

Beyond the connected car ecosystem, there are opportunities for integration with other emerging technology ecosystems -- such as the smart home and smart city technology. The ultimate commercial value of the ecosystem will be determined by others, such as government policymakers and Mobile Network Operators (MNOs).

Connected Car Market Development

A new market study by Juniper Research has revealed that, by 2022, 50 percent of consumer vehicles on the road will have at least one connectivity service -- such as telematics, vehicle-to-everything (V2X) communications, or connected car commerce services.

The study found that revenues from consumer connected car services will rise from $18.4 billion in 2017 to $49.2 billion in 2022 -- that's a 21.6 percent compound annual growth rate (CAGR).

According to the Juniper assessment, increasing industry involvement from OEMs and network operators, combined with the development of new V2X services, will be key drivers for future growth.

The research found that automotive OEMs are preparing to capitalize on the opportunities for V2X services, such as smart parking and automated fuel payments. North America is likely to emerge as the leading region in this space, accounting for 39 percent of all end-user spend on connected car commerce platforms by 2022.


Juniper analysts believe that stakeholder investments and public-private partnerships will be as critical to future vehicle-to-infrastructure (V2I) services as OEM involvement.

Additionally, the study found that in-vehicle services must remain specific to the vehicle or risk being viewed as unnecessary and invasive. Lucrative services will therefore be restricted to fuel payments, smart parking and toll roads.

That being said, the analyst also highlighted that early roll-outs of infrastructure could take up to five years to implement, allowing ecosystem stakeholders time to cultivate the appropriate use cases.

Outlook for Connected Car Commerce

While vehicle sales will limit the adoption of vehicle-integrated commerce services, the high average spend per user will offer a significant revenue opportunity to entice stakeholders. Juniper predicted that total consumer spend over connected car commerce platforms will exceed $100 billion by 2022.

"OEMs will begin competing on the level of convenience that their in-vehicle services offer," said Sam Barker, analyst at Juniper Research. "Soon, the level of service will be more important to drivers than vehicle performance itself."

Popular posts from this blog

The AI Application Integration Challenge

Artificial intelligence (AI) has rapidly become the defining force in business technology development, but integrating AI into applications remains a formidable challenge. According to a recent Gartner survey, 77 percent of engineering leaders identify AI integration in apps as a major hurdle for their organizations. As demand for AI-powered solutions accelerates across every industry, understanding the tools, the barriers, and the opportunities is essential for business and technology leaders seeking to evolve. The Gartner survey highlights a key trend: while AI’s potential is widely recognized, the path to useful integration is anything but straightforward. IT leaders cite complexities in embedding AI models into existing software, managing data pipelines, ensuring security, and maintaining compliance as persistent obstacles. These challenges are compounded by a shortage of skilled AI engineers and the rapid evolution of AI technologies, which can outpace organizational readiness and...