Connected Vehicle Sales Grow by 20 Percent in 2021

Jason R. Sakurai
by Jason R. Sakurai
connected vehicle sales grow by 20 percent in 2021

Connected vehicle sales will grow 20 percent in 2021, with a 10.4 percent compound annual growth rate (CAGR) between 2020-2026 according to ABI Research, a tech market advisory group.

2020 new car sales dropped 15 percent, although it was less than anticipated. Consumers rallied at the end of 2020 and the first quarter of 2021, catching automakers with their days supply down. End users have become more demanding about their infotainment systems. According to ABI, there’s strong interest in connected vehicles, an opportunity OEMs are missing.

Hyundai’s partnering with Nvidia to standardize AI-based infotainment systems is one example. In ABI’s study, connected vehicles are reshaping the industry with more powerful infotainment systems. Nvidia, Qualcomm, Xilinx, NXP, and TSMC have platforms with greater AI-based functionality, and headroom for updates and apps.

Vehicles with connected infotainment will grow by 23 percent in 2021, returning to pre-pandemic levels, ABI claims. They say this is due to increased penetration in emerging market regions. The Ford and Google alliance shift to Android’s OS will double its penetration in 2023 and 2024. Google’s advantage occurred due to poor embedded system reviews, and existing smartphone dominance.

At present, connected vehicle subscriptions are not profitable. Sensor data marketplaces, OTA updates, and in-vehicle commerce could monetize connectivity during the vehicle’s lifecycle. To realize this potential, OEMs need to offer more compelling user experiences to increase touch points with their embedded systems, ABI advised.

Tesla, Mercedes-Benz, Volvo/Polestar, Harman, Visteon, and Aptiv are OEMs and tier ones heavily investing in connected vehicle technology. ABI Research’s connected cars report was the source. ABI provides research and guidance to technology firms, innovators, and decision makers, focusing on technologies that are changing industries, economies, and work forces. Their aim is to empower clients to stay ahead of the market and their competition, a lofty goal in the midst of chip shortages and divergent platforms.

[Image: Cadillac]

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  • ABC-2000 ABC-2000 on May 09, 2021

    Just got 2021 CX-5 GT, it came with connected service complimentary for 3 years and cellular data for 3 month. Reading thru Mazda's agreement for usage is a little scary but it's fun to have the iphone app to control the car from anywhere, get alert if a door is open and so on.

  • Master Baiter Master Baiter on May 09, 2021

    The newest of my three vehicles is "connected" and it suffers from the same type of software bugs that plague smart phones and computers. Driver profiles fail to load half the time; the connected phone app that's suppose to send GPS directions to the vehicle doesn't work most of the time; the last software update changed the UI and broke a frequently-used feature; the voice input is unreliable. Hell, it even forgets my home address sometimes. And this is all on vehicle that cost nearly $90K. Color me unimpressed.

  • Jeff S Corey--We know but we still want to give our support to you and let TTAC know that your articles are excellent and better than what the typical articles are.
  • Jeff S A sport utility vehicle or SUV is a car classification that combines elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.There is no commonly agreed-upon definition of an SUV and usage of the term varies between countries. Thus, it is "a loose term that traditionally covers a broad range of vehicles with four-wheel drive." Some definitions claim that an SUV must be built on a light truck chassis; however, broader definitions consider any vehicle with off-road design features to be an SUV. A [url=https://en.wikipedia.org/wiki/Crossover_(automobile)]crossover SUV[/url] is often defined as an SUV built with a unibody construction (as with passenger cars), however, the designations are increasingly blurred because of the capabilities of the vehicles, the labelling by marketers, and electrification of new models.The predecessors to SUVs date back to military and low-volume models from the late 1930s, and the four-wheel drive station wagons and carryalls that began to be introduced in 1949. The 1984 [url=https://en.wikipedia.org/wiki/Jeep_Cherokee_(XJ)]Jeep Cherokee (XJ)[/url] is considered to be the first SUV in the modern style. Some SUVs produced today use unibody construction; however, in the past, more SUVs used body-on-frame construction. During the late 1990s and early 2000s, the popularity of SUVs greatly increased, often at the expense of the popularity of large [url=https://en.wikipedia.org/wiki/Sedan_(automobile)]sedans[/url] and station wagons.More recently, smaller SUVs, mid-size, and crossovers have become increasingly popular. SUVs are currently the world's largest automotive segment and accounted for 45.9% of the world's passenger car market in 2021. SUVs have been criticized for a variety of environmental and safety-related reasons. They generally have poorer fuel efficiency and require more resources to manufacture than smaller vehicles, contributing more to climate change and environmental degradation. Between 2010 and 2018 SUVs were the second largest contributor to the global increase in carbon emissions worldwide. Their higher center of gravity increases their risk of rollovers. Their larger mass increases their stopping distance, reduces visibility, and increases damage to other road users in collisions. Their higher front-end profile makes them at least twice as likely to kill pedestrians they hit. Additionally, the psychological sense of security they provide influences drivers to drive less cautiously. https://en.wikipedia.org/wiki/Sport_utility_vehicleWith the above definition of SUV any vehicle that is not a pickup truck if it is enclosed, doesn't have a trunk, and is jacked up with bigger tires. If the green activists adhere to this definition of what an SUV is there will be millions of vehicles with flat tires which include HRVs, Rav4s, CRVs, Ford Escapes, Buick Encores, and many of compact and subcompact vehicles. The green movement is going to have to recruit millions of new followers and will be busy flattening millions of tires in the US and across the globe. Might be easier to protest.
  • Sckid213 I actually do agree that most Nissans are ultimately junk. (I also think many BMWs are also). I was talking challenging the 3 in terms of driving dynamics. Agree all were failures in sales.
  • THX1136 More accurately said, we are seeing exponential growth in the manufacturing capabilities in this market. Unless, of course, all those vehicles are sold with customers waiting until more a produced so they can buy. Indeed, there are certainly more EVs being purchased now than back in 2016. Is demand outstripping manufacturing? Maybe or maybe not. I sincerely don't know which is why I ask.
  • ToolGuy The page here (linked in the writeup) is ridiculously stupid https://www.tyreextinguishers.com/how-to-spot-an-suvLike, seriously stupid, e.g., A) Not sure that particular Volvo is killing the planet as quickly as some other vehicles we might choose. B) A Juke is "huge"??? C) The last picture shows a RAV4 Hybrid?
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