New car sales fell 15% in 2020, better than the initially more negative forecast. What’s more, consumer enthusiasm began to rebound in late 2020 and the first quarter of 2021, which caught automakers and their suppliers by surprise. Meanwhile, consumers have become more demanding about their expectations of an in-car infotainment system, which has sparked a lot of interest in connected cars and increased opportunities for the industry to grow. Analyst firm ABI Research expects connected vehicle sales to grow by 20% in 2021, with an average annual growth of 10.4% between 2020 and 2026.
Shipments of vehicles with infotainment systems connected to the global network will grow by 23% in 2021, returning to the level before the pandemic. This will be driven by the growing popularity of connected cars in emerging markets, analysts say. The recently announced partnership between Ford and Google marks a significant move to Android, which will more than double its current level of penetration into production vehicles by 2023-2024.
While the connected car subscription model has yet to prove profitable, selling sensor data, distributing updates over the air, and in-car trading are examples of how connectivity can help OEMs move from a transactional relationship to continuous monetization throughout the lifecycle. car.
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