October 6, 2015 — Look for the connected car to be the next big paradigm shift in mobile communications. Trends are showing up, and research companies like Infonetics and Gartner are predicting that there will be 250 million connected cars on the roads by 2020, the time the Internet of Things (IoT) will up and running and 5G will be launched. According to Gartner, “the proliferation of vehicle connectivity will have implications across the major functional areas of telematics, automated driving, infotainment and mobility services.”
Connected vehicles of all types will integrate everything from small cells and big cells to Wi-Fi, LTE/LTE-U, Bluetooth and Zigbee. The vehicle will literally be roving radio cells. And, they will be a broad platform for all types of services and analytics that will become a gigantic revenue generator.
And all of this will be embedded. Connected cars will act as relay points with automatic integration of smart devices. No longer will one need to carry a smart device while driving; the car itself will be the smart device, capable of everything from communications to self-driving to automatic synchronization with the IoT, the smart home, your family and work…your life.
The smart car will be as integral and indispensable tomorrow, as the smart phone is today. And it won’t be just the Teslas, BMWs, Jags, or Mercedes. It will be every vehicle. That same smart vehicle platform will also include mass transportation.
Infonetics predicts that, “revenue derived by service providers for the connectivity and other basic value-added services they provide to the automotive, transport, and logistics (a.k.a. connected car) segment to more than triple from 2013 to 2018, to $16.9 billion worldwide. The connected car services market is growing at a compound annual growth rate (CAGR) of 25 percent, nearly 21 times the growth rate expected for traditional mobile voice and data services during the same time period, according to Infonetics.
On a parallel path, the European, the Middle Eastern and African market (EMEA) has started to look at how to integrate the multitude of various sectors that comprise the intelligent vehicle market into a single M2M platform that can become ubiquitous across the driving landscape. There is little solid progress here, simply because there is such a diverse transportation infrastructure worldwide. But at least this show that there are people starting to think about it.
Anyway, if much of what is going on in this sector is even close to what is going to occur, the implications are staggering, from both a technological and an economic perspective.