Commentary

Connected Car Ecommerce Projected To Hit $265 Billion

While consumers may not be ready for self-driving cars, they’re about to be faced with an increasing amount of in-car connectivity leading to more consumer spending while in cars.

An estimated 775 million consumer vehicles will be connected via telematics or by in-vehicle apps by 2023, growing 19% annually from 330 million this year, according to a new study by Juniper Research.

Juniper defines telematics as ‘the use of wireless technologies and in-vehicle information technology to relay information to and from vehicles, with the aim of improving the driver experience or providing additional information and analysis to the driver or a third party.’

Just over a million cars will be capable of vehicle-to-vehicle (V2V) communications next year, but that number is projected to balloon to more than 62 million by 2023, a growth rate of 173%.

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A connected car is not necessarily an autonomous vehicle, but it is where marketing, advertising and commerce will become a logical fit. Total spending over connected car ecommerce platforms will reach $265 billion by 2023, according to Juniper.

Usage of voice assistants in cars is also projected to increase, with more than 370 million in-vehicle voice assistants being accessed by 2023. This means voice assistants will have to be enabled to access a vehicle’s basic functionality, such as climate control, while manufacturers prioritize security of data and driver distraction, according the Juniper study.

AT&T already has 24 million connected cars in 200 countries on its network along with another 3 million connected fleet vehicles.

The new 5G speeds coming will be a big driver of car connectivity. While the current 4G speeds focused on consumer-oriented services like infotainment and in-car applications, 5G will enable vehicle-to-everything services.

The new speeds can facilitate new connected car payment services, such as for fuel payment, automatic toll road payments, vehicle monitoring and maintenance, third-party retail apps and automatic parking payments.

These cars won’t drive themselves, but they will make many tasks easier on the driver.

1 comment about "Connected Car Ecommerce Projected To Hit $265 Billion".
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  1. R MARK REASBECK from www.USAonly.US , December 12, 2018 at 8:18 p.m.

    Juniper is Bovine Scatology.  can't be 330 million cars this year that are connected when the new car sales worldwide in 2016 was 88.1 million.  They are expecting people trading their car every year?  And if it's all about advertising, haven't we since the invention of ads
    found away to avoid them???
      turn the station.  record and fast forward, ad-blocker, DVR. Net flicks.  etc
    why would their not be a way to dump the junk in the car? Even You-Tube has a "skip" in  5 seconds, and we ALL use it.    Pie in the Sky.

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