Why The Automotive Opportunity Is Bigger Than You Think

Why The Automotive Opportunity Is Bigger Than You Think

Over-the-air software (OTA) upgrades have become standard for laptops and phones. In cars, it’s a completely different story.

Research firm IHS recently reported that vehicles with OTA-capable infotainment systems will grow from just over 200,000 units in 2015 to more than 96.4 million enabled vehicles by 2022. Put another way, the savings achieved through OTA will grow from $2.7 billion last year to $35 billion in 2022.

Numbers like that illuminate why semiconductor manufacturers, hardware vendors and software developers are increasingly turning to the automotive market, explains SanDisk’s Martin Booth in a recent article on RCR Wireless. There are over 1 billion vehicles in the world, but few have been optimized for wireless communications, predictive maintenance or autonomous capabilities. The benefits in terms of safety, fuel consumption and convenience, however, are enormous.

Another interesting fact: by 2020, Gartner expects close to 20% of vehicles to have some form of wireless connection. That’s 250 million cars, up from a comparative handful today.

It’s an interesting read. We recommend you check it out.


Michael Kanellos: Michael has written about advanced technologies and Silicon Valley for 20+ yrs with a resume that includes CNET, Greentech Media and Forbes.

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