Omdia: Connected car on the road to grow 18% in 2023 opening potential lucrative new revenue streams
LONDON, July 25, 2023 /PRNewswire/ — Connected cars on the road are set to grow 18% in 2023 according to Omdia’s latest outlook into the automotive market’s media landscape. Companies including the likes of Google and Apple are positioning themselves to capture and develop the potential revenue opportunities from this market over the coming decade.
Omdia’s research further reveals that over 900 million connected cars will be on the road at the start of the next decade, eclipsing the installed base of popular consumer devices such as pay-TV set top boxes and tablets. These vehicles will include a plethora of screens in the front and rear of the cabin which are growing in size each year to enable video and gaming services.
As seen with their approach across other product categories, platform owners Google and Apple are looking to become key gatekeepers within the car environment with their respective in-car software solutions. Amazon is bringing its immensely popular Fire TV entertainment solution in-vehicles for media consumption too. In response to this attempt, car OEMs are developing their own software solutions to keep drivers within their own ecosystems, allowing them to retain control of the whole consumer experience across both the vehicle and the software.
Over the next few years all new car sales will include connectivity as a standard feature enabling services and subscriptions in the car cabin as the industry pivots its focus to repeated revenues in a new business model. Monetization strategies are already being put in place through add-on subscriptions ranging from cloud gaming services to heated seats and even the cars themselves.
Discussing the market outlook, Omdia Principal Analyst David Tett commented: “There is ongoing uncertainty as to consumers’ willingness to pay extra for in-car services particularly as they correlate it with value for money given average journeys range between 15-30 minutes. Although it has been difficult to monetize, native car-based services are expected to provide such opportunities over the coming years. This potential has meant many stakeholders consider automotive as a key area for future growth.”
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