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

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c