The market for in-vehicle apps will be worth over US$1.2 billion by 2017, according to a Juniper Research report.
The study, Connected Cars: Automotive Telematics & In-Vehicle Infotainment 2013-2017, finds that advancements in automotive connectivity standards such as MirrorLink and higher smartphone ownership will create foundations allowing the connected car ecosystem to flourish, particularly in the more-developed North American and Western Europe markets.
The new report found that there will be a downward pressure on the price of vehicle manufacturers' own embedded telematics infotainment services as the in-vehicle app ecosystem matures.
"The biggest winner from the rapid roll-out of smartphone tethering and in-vehicle Apps will be the consumer," says the report's author Anthony Cox, noting that smartphone tethering will enable the creation of a wealth of apps for the vehicle just as it did for the smartphone.
According to the report, the market for embedded telematics systems in both the commercial and consumer areas will also see robust growth as consolidation among regional commercial telematics players begins to give an indication of which players will become a global force in telematics.
Meanwhile, the report noted that big data derived from telematics service provision is likely to emerge as an unexpected revenue driver for telematics companies and automotive manufacturers.
The widespread deployment of V2V (vehicle to vehicle) and vehicle to infrastructure (V2I) technologies remains a long way off, though trials are ongoing in some markets, while insurance telematics is reaching the point of widescale deployment particularly in certain markets such as the US, Italy and the UK.
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