The Connected Car

PC Magazine defines a connected car as "a vehicle that provides Internet access to all the mobile devices used by the driver and passengers. It accesses the Internet via cellular or satellite communications and provides tablet-sized screens for passengers or a Wi-Fi hotspot for passengers' own devices." Although vehicle performance and fuel efficiency have been improving, the connected car is the future.

Strategy& foresees annual sales of connected car technologies tripling to €122.6 billion by 2021. "This is a slight slowdown in adoption speed compared to earlier estimates, attributable to the decision by European regulators to give OEMs a three-year extension until 2018 to install automatic emergency calling systems.We expect connected car technologies to generate €40.3 billion in end-customer spending next year." (Source: Strategy&)

The mobile phone industry is evolving with the connected car:

• Apple now has CarPlay, which can access apps and connect seamlessly with Apple products.

• Google's Alphabet Android Auto is competing with CarPlay. (Source:TheStreet)

Safety 

The number one priority for consumers is safety. "A survey from Telefonica showed that 73% of respondents say safety is the most important feature they'd like to see enhanced in cars in the future. Already, big companies are developing unique safety options." (Source: Strategy&)

"Connected safety hasn't necessarily been a purchase decision to date but is certainly becoming more relevant," said Ian Digman, general manager of Nissan, in the Telefonica report. Some of the safety features of connected cars include greatly improved roadside assistance, collision protection and emergency alerts.

In 2010, the Chinese car market outgrew the United States. The difference continues to flourish as more Chinese buy vehicles.  Many noteworthy US companies are innovating the connected car industry, China is potentially becoming the most lucrative market. 

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