20
Thu, Jan
0 New Articles

Three-quarters of cars to be connected by 2020, claims Giesecke & Devrient

News

Three-quarters of all vehicles shipped in 2020 will have integrated connectivity, as consumers demand more in-car services, SIM card provider Giesecke & Devrient has claimed.

Citing research from Scotiabank, the vendor said out of the 70 million cars registered in 2014, only 10 percent had some form of connectivity.

G&D said it expects 92 million vehicles to be registered by 2020, of which 69 million will be connected. In total, there will be 1.1 billion vehicles on the road, with 220 million of them, around a fifth, predicted to have connectivity.

Stefan Auerbach, Group Executive Mobile Security, said: “Vehicles of the future will be fully networked, independent, mobile ecosystems with specific services. Even today, eCall, autonomous driving, car-to-x communication, and mobility and telematics services are on every car manufacturer's road map. Consumers increasingly demand connectivity services such as Wi-Fi for passengers and external internet connections for music streaming, navigation, and other applications.

"We are seeing a range of new services in this sector, including pay-as-you-drive insurance, location- or context-related services, pay-per-use for additional functions, and customized driver features."

Auerbach added that secure connectivity was key. He said: "All those services use universal communication channels that require scalable security solutions to cover the entirety of the system's end points." 

Last week, operators were boosted by the news that car manufacturers including General Motors, Jaguar Land Rover, Renault Nissan, Scania and Volvo Cars had backed the GSMA's embedded SIM specification, which uses cellular connectivity to deliver services.

According to recent research, the in-car infotainment sector will be worth $600 million by 2020.