Analysts see 152 million connected cars by 2020

A recent study conducted by IHS Automotive has confirmed that there will be 152 million actively connected cars on global roads by 2020 – representing a mere fraction of the estimated 18 billion Internet of Things (IoT) devices on the planet.

The car-to-x system warns of road works, congestion, obstacles and dangerous weather (courtesy Daimler).

In addition, the study estimates $14.5 billion of value (generated) from the OEM connected car landscape across a variety of Big Data assets found in the connected car. These include diagnostics, location, user experience (UX) /feature tracking and adaptive driver assistance systems (ADAS)/autonomy. Significantly, the technology growth is expected to drive sales, value-added services and customer experience in the already lucrative sector for years to come.

“Traditionally Big Data has focused on the ‘4 V’s’ – volume, velocity, variety and veracity,” Mark Boyadjis, senior analyst of infotainment and Human-Machine Interface (HMI) at IHS Automotive, explained. “But without understanding the fifth ’V,’ value and the value proposition, the collection of data from the connected car is literally a waste of time. It is important to understand how data from intelligently designed systems will drive billions of dollars of annual revenue between data assets, analytics and end-user services.”

According to Boyadjis, IHS Automotive estimates (conservatively) that more than 480 terabytes of data will be collected from the OEM connected car landscape in 2013 via millions of small data transmissions sent via more than 26 million connected cars. Meanwhile, a combination of increased connected car sales and a growing scale of information coming from connected cars will result in the collection of some 11.1 petabytes of connected car data by 2020.

In addition, the rate at which the data is flowing from the connected car landscape continues to dramatically increase, with approximately 30 terabytes of data projected to be collected each day from the 152 million connected cars on the road in 2020, or about 350 megabytes per second, compared to about 15 megabytes per second in 2013.

In the Daimler Car-to-X system, obstacles are shown on the vehicle’s display (courtesy Daimler).

Currently, the majority of connected car data is used internally for diagnostics, location, speed and vehicle status. However, by 2020, industry analysts expect four core categories of data to be most the critical: diagnostics, location, user experience/features and adaptive driver assistance systems/autonomy data. Because they will require so much more volume and variety, ADAS/Autonomy is expected to be the largest and most expensive data category in the future.

“The most important challenge this industry has in front of it is organizing systems and defining roles in Big Data from the connected car. Who owns the data, the pipe, and the analytics is still yet to be determined, [yet] will have to be before connected car data can be put to work efficiently,” Boyadjis added.

As we’ve previously discussed on Bits & Pieces, there are quite a number of IoT opportunities on the automotive horizon for MCU makers like Atmel.

“The Internet of Things is going to be a huge boon for companies like us that make both microcontrollers and radio chips,” Atmel’s Paul Rako explained in a Bits & Pieces blog post back in October. “[Recently], I read that you can consider an automobile just another ‘thing’ in the IoT, [with the] American National Traffic Safety Board (NTSB) encouraging manufacturers to design cars that communicate with each other to make them safer. When the auto industry is ready, Atmel will be there to enable the technology.”

3 thoughts on “Analysts see 152 million connected cars by 2020

  1. Pingback: Analysts see 152 million connected cars by 2020 | Richards Innovation Blog

  2. Sid

    To achieve all this while maintaining the discipline to develop safety critical software is going to be a challenge. That means not just things like MISRA C.


  3. Pingback: The Microcosm of IoT and Connected Car in Formula 1 (Part 2) | Bits & Pieces from the Embedded Design World

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