A new report from Juniper Research has revealed that 775 million vehicles will be connected via telematics or by in-vehicle apps by 2023, rising from 330 million vehicles in 2018. This is an average annual growth of 18.7 percent over the next five years.

The new research, "Consumer Connected Cars: Telematics, In-vehicle Apps & Connected Car Commerce 2018-2023", forecasts that automotive OEMs will enable in-vehicle infotainment systems to be accessible to third party developers. In turn, this will accelerate expansion of new technologies and services that will increase the value proposition for drivers. In this context, Juniper anticipates the growth of in vehicle voice assistant use, as well as in-vehicle commerce.

The research found that the total spend over connected car eCommerce platforms will reach US$265 billion by 2023.

“Until the market gains new entrants from outside the automotive ecosystem, the increase in transactions will be driven by convenience for the user, rather than the creation of new services themselves," said research author Sam Barker.

"By 2023, we expect that in-vehicle commerce transactions will be less than one percent of mobile and online transactions globally”.

The research also forecasts that over 370 million in-vehicle digital voice assistants will be accessed by 2023. However, in-vehicle assistants must be given access to the vehicle’s basic functionality, such as climate control, to offer a differentiation point to smartphone-tethered options. Juniper forecasts that automotive OEMs will increase this access to vehicle systems, although mitigating risks, including security of data and driver distraction, will remain the highest priority.

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