‘Connected Cars’ Are Driving Exponential New Business Opportunities

Internet apps on car dashboards are optimizing vehicle performance and providing drivers with enhanced navigational services, automatic notification of crashes, notification of speeding and safety alerts. roadside assistance, parking information, engine controls and car diagnostics.

“According to McKinsey, one in five cars will be connected to the Internet by 2020.”

But that’s not all: drivers and their passengers also are now leveraging Internet connectivity to receive a wide array of entertainment services and even shop online or receive marketing offers from nearby retailers.

According to McKinsey, one in five cars will be connected to the Internet by 2020, increasing as much as 30% each year for several years.

The explosive trend will dramatically increase the global market for connectivity components and services nearly sixfold, to roughly $10 billion by 2020, McKinsey says, and also will likely “significantly alter the competitive landscape.”

“Companies from the software and telecommunications sectors are already entering the automotive market, and…original-equipment manufacturers need to act now to secure control over critical industry sectors,” the authors wrote.

Katie Kuehner-Hebert :Katie Kuehner-Hebert has more than two decades of experience writing about corporate, financial and industry-specific issues. She is based in Running Springs, Calif.