ABI Forecasts 210m Connected Cars by 2016

According to a new report from ABI Research the installed base of embedded and hybrid connected car systems is expected to grow from 45 million at the end of 2011 to 210 million by 2016.

ABI distinguishes four different flavours of connected car implementations:

– Fully embedded OEM systems such as GM’s Onstar and BMW’s Connected Drive

– Embedded aftermarket solutions for vehicle tracking, road user charging and insurance

– Factory-installed hybrid systems such as Ford SYNC

– Hybrid aftermarket solutions from Pioneer and Kenwood offering Pandora Internet radio via smartphone integration

ABI Research practice director Dominique Bonte feels that “the prospects for the connected car look good, with growing interest from a range of stakeholders.”

According to ABI Research several factors are fueling this growth. After repeated delays Brazil’s stolen vehicle regulation and Europe’s and Russia’s eCall mandates are now clearing the last hurdles towards implementation.

In addition, Many governments across the globe are looking at road user charging systems to more fairly tax their citizens while at the same time managing congested roads.

Furthermore, Insurance companies are showing real interest in car connectivity in an attempt to rationalize and differentiate their industry.

ABI also notes that car manufacturers are keen to implement predictive maintenance and use connectivity as a communication channel with the end user. Other examples include car sharing initiatives with ZIPCAR’s imminent IPO and BMW’s and Sixt AG DriveNow joint venture.

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