Omdia: The growth of connected vehicles on the road in 2023 will open up a new source of profitable potential revenue

Global Connected Automotive Outlook

    Omdia‘s research further shows that by the beginning of the next decade, more than 900 million connected cars will be on the road, surpassing the installation base of popular consumer devices such as pay TV set-top boxes and tablets. These cars will have a large number of screens installed in the front and back of the driver‘s cab, and the size of these screens is increasing every year to support video and gaming services.

    As seen in other product categories, platform owners Google and Apple both hope to become key gatekeepers in the automotive environment through their respective in car software solutions. Amazon has also brought its popular Fire TV entertainment solution into the car for media consumption. In response to this attempt, automotive original equipment manufacturers are developing their own software solutions that keep drivers in their ecosystem, allowing them to control the entire consumer experience of the vehicle and software.

    In the coming years, all new car sales will consider connectivity as a standard feature, making in car services and subscriptions possible, as the automotive industry focuses on duplicate revenue in new business models. Through cloud game services, heated seats, and even additional subscriptions to the car itself, monetization strategies have been put in place.

    When discussing market prospects, Omdia Chief Analyst David Tett said, "There is still uncertainty about whether consumers are willing to pay additional fees for in car services, especially considering that the average travel time is between 15 and 30 minutes, which they associate with value for money. Although it is difficult to monetize, local services based on cars are expected to provide such opportunities in the coming years. This potential means that many stakeholders see cars as a key area for future growth