Connected "smart cars" They will soon dominate the automotive market
The Internet of Things is predicted to be one of the strongest trends to dominate the mobile world this year. A big part of this phenomenon is the so-called. connected cars. connected cars), or smart cars, connected to the internet. Last year, many companies made significant strides in making ordinary cars “smart cars”. Recent studies show that by 2020 we can already expect to see a significant number of such vehicles on the streets around the world.
According to BMW Group CEO Norbert Reithofer, connected cars have the potential to revolutionize the automotive industry far more than hybrid or electric cars.
Research conducted by Business Insider shows that connected cars will grow in popularity and their number on the streets will increase every year. Their popularity is influenced by factors such as Growing smartphone penetration, telecom network development and the declining average price of connected cars. They are expected to enjoy the greatest success in Asia, followed closely by North America. Western Europe ranks third in terms of estimated sales volume of connected cars.
Last year, 7 million smart cars were sold worldwide. It is estimated that already this year this number will double. The number is expected to grow to nearly 70 million by 2020.
According to the report, Asia Is to continue to dominate the automotive market, producing the largest number of connected cars. Asian mobile companies such as Alibaba and Baidu could have a significant impact on the popularization of these vehicles. When it comes to United States, It is estimated that By 2020, about 97% of cars produced and sold in the U.S. will be internet-connected vehicles.
Adaptation of smart cars in Europe will also proceed at a rapid pace. In 2021, the ratio of connected to non-connected cars was 13%. This figure is expected to rise to 95% within the next five years.
The adaptation of connected cars will be slowest in South America and Eastern Europe, due to the fact that the fewest cars are purchased in these regions, and that these regions are among the developing rather than developed markets.
The trend for connected cars is growing not only thanks to car manufacturers themselves. The main software’players in the mobile market – Google and Apple – last year prepared their versions of software dedicated to cars. Emerging CarPlay prepared by Apple and Android Auto from Google. With these systems, the car will take on many of the functionalities known from smartphones.
Huawei, meanwhile, invested in 5G network expansion, that will be able to withstand the data load that smart cars will generate in the future. With the Internet of Things developing so rapidly, more and more car manufacturers will offer smart cars as standard. Because of this fact, in a few years’ time the production of “ordinary” cars, without internet connectivity, may disappear completely.
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