Research says 60% of new cars in 2017 will feature connected car solutions

ABI Research says that global OEM connected car system penetration will rise from its current 11.4% to 60.1% in 2017, with even higher penetrations in the U.S. and Europe.

ABI Research, a trends forecasting company focusing on connectivity, has released a report predicting a 60.1% penetration of connected car systems installed as original equipment manufacturer (OEM) technology in vehicles by 2017. The report also predicts much higher market penetration in the United States and Western Europe.

Current penetration, as of 2012 model years, says ABI, is about 11.4%. This is expected to reach 60.1% by 2017 globally, but will exceed 80% in the U.S. and Western Europe by that time. Strong increases in developing markets such as Brazil and Russia will also be seen thanks to mandates enacted in those countries.

Connected car solutions range the technology gamut from embedded to converged connectivity solutions and hybrids in between those. These are usually subscription services such as General Motors' OnStar program. ABI bases its predictions on number of announced models to include connectivity options, expected market penetration of those vehicles based on past sales volumes, and hardware and service revenues for sales regions globally. ABI specializes in Automotive Infotainment and Safety and Security Telematics research.

"In-car connectivity is quickly transforming the automotive industry," says Dominique Bonte, VP of ABI, "enabling passive and active safety and security and offering infotainment and connected lifestyle services to consumers but also enabling new car ownership, usage, and experience modes such as car sharing, (semi)-autonomous driving, dynamic demand-response electric vehicle charging pricing, and customer and vehicle relationship management services including prognostics and preventive maintenance."

Two blockades to the rapid deployment of connectivity in the automotive industry are cost and lack of awareness, ABI says. Currently, most of these solutions are marketed as complex, expensive accessories rather than as integrated vehicle components.