Increasing Trends in Automotive
Companies are pouring money into the Internet of Things, and one area of particular interest to investors is IoT connected cars.
BI Intelligence, Business Insider’s premium research service, expects 94 million connected cars to ship in 2021, and for 82% of all cars shipped in that year to be connected. This would represent a compound annual growth rate of 35% from 21 million connected cars in 2016.
Automakers have correctly noticed a growing trend and a significant business opportunity for connecting their cars. BI Intelligence expects 381 million connected cars to be on the road by 2020, up from 36 million in 2015. Furthermore, BI Intelligence forecasts that connected cars will generate $8.1 trillion between 2015 and 2020.
But it won’t just be car wi-fi that changes the automotive industry. Public transportation, such as buses and trains, will also transform thanks to the IoT. Subway cars in New York City, for example, will start to have chargers, built-in Wi-Fi, and security cameras, according to the city’s Metropolitan Transportation Authority.
Still, connected cars will be the bread and butter of the Internet of Things automotive industry. Below, we’ve compiled a history of the growth of the IoT in transportation and outlined how the “Internet of vehicles” will surge in the coming years.
