Gartner: Connected Car Production Will Grow Rapidly in the Next Five Years

The future connected car applications will drive a 150 percent increase in demand for contextual information from 2016 through 2020.

According to research firm Gartner, the production of new automobiles equipped with data connectivity is forecast to reach 12.4 million in 2016 and increase to 61 million in 2020. 
"Connected vehicles will continue to generate new product and service innovations, create new companies, enable new value propositions and business models, and introduce the new era of smart mobility, in which the focus of the automotive industry shifts from individual car ownership to a more service-centric view of personal mobility," said James Hines, research director at Gartner.
The research firm also forecasts that the connected car technology will create opportunities for automakers to generate postsale profits through sales of additional services and feature upgrades, as well as enhance brand loyalty through a more personalized customer experience. It predicts that future connected car applications will drive a 150 percent increase in demand for contextual information, such as image detection and geolocation, from 2016 through 2020.
"As cars become more automated, they are being equipped with an increasing array of sensing technologies, including cameras and radar systems," said Hines. 
"Many automobiles will use image detection as the primary means to identify and classify objects in the vicinity of the vehicle so they can provide more sophisticated responses and even have autonomous control," he said.
To become more automated, and also cleaner, the research firm reports that automobiles will require five percent more embedded processing functions, year over year, from 2016 through 2020.
Automated driving functions, such as adaptive cruise control, collision avoidance and lane departure warning systems, necessitate real-time camera and sensor data processing and pattern recognition. Improving fuel efficiency and reducing emissions necessitate sophisticated engine and transmission control systems.

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