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The value of the connected car market is about to sky rocket

Lynsey Barber
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Car brands need to focus on innovation for a slice of the future connected car market (Source: Getty)

The likelihood of driving or travelling in a car that's connected to the internet in some way will be higher than ever in the coming years, with the industry pegged to be worth billions.

The value of the market for connected cars is set to sky rocket, hitting £120bn by 2022, new research predicts.

PwC anticipates it will grow by an astonishing 25 per cent a year, up from £40bn in 2017, and that two in every three cars sold in six years time will have some sort of connectivity.

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This includes sat nav and entertainment such as TVs, the systems cars use to operate such as autopilot technologies as well as tech such as telematics, however, manufacturers will have to shift their focus.

While entertainment will grow, the greatest focus will be on safety technology.

“The increase in connectivity holds real opportunity and risk. While the overall connected mobility market is growing rapidly, the mix is shifting, with a decline in the navigation and entertainment systems which have been the mainstay for manufacturers, coupled with the spread of connectivity further into the more price sensitive mass market," said PwC automotive partner Rich Parkin.

"In the short- to medium-term, suppliers of technology and mobility and digital services are the ones set to profit most from the budding connected car market.”

Driverless car tech, which almost every major car manufacturer in the world and the biggest tech companies are developing, is expected to make up £42bn of that total.

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Car makers will have to adapt to this changing market and increase their focus on innovation, the consultancy said.

"Despite major manufacturers increasing their development budgets by eight per cent compared to the previous year and realigning their focus, they are still often being overtaken by newcomers," added Parkin.

"To capitalise on the opportunity, traditional car makers will need to not only take advantage of the latest technologies, but also significantly accelerate their rate of innovation."

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