Juniper Research: In-Vehicle Apps Expected to Increase 5-fold by 2018

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Juniper Research: In-Vehicle Apps Expected to Increase 5-fold by 2018

Jul 2, 2014 8:27 PM, Doug Irwin, CPBE DRB AMD

Hampshire, UK (July 1, 2014)--A new report by Juniper Research on the telematics sector has found that the number of in-vehicle apps in use is expected to reach 269 million by 2018, representing a more than fivefold increase over last year's figure.

According to the report, �Connected Cars: Consumer & Commercial Telematics and Infotainment 2014-2018�, growth will be fueled by solutions such as Apple's CarPlay, which will promote in-vehicle apps to the mainstream. The report also argues that app integration will be facilitated as standardized approaches like MirrorLink are adopted this year by OEMs (Original Equipment Manufacturers), content providers and automotive entertainment specialists.

The report found that although the integration of apps into the vehicle will have a profound effect on traditional monetization models, potentially decreasing revenues, two factors will favor embedded telematics. Firstly, regulatory initiatives such as the eCall driver safety project and Brazil's regulation Contran 245 governing stolen vehicles, will guarantee the take-up of embedded telematics in several key geographical regions.

Secondly, it argued that the ability to split the telematics "bill" pioneered by major operators, systems integrators and the GSMA, will allow for granular billing of infotainment and other services. This will particularly be the case as streaming and other advanced services become available in developed markets through LTE adoption.

The report also asserts that widespread smartphone tethering and in-vehicle apps would continue to drive down the price of vehicle manufacturers' own embedded telematics infotainment services.