Smart cars with their in-vehicle infotainment systems, will produce revenues of more than $600 million (£420m) by 2020, a new prediction by Juniper Research suggests.
The market analysts say, in their research paper entitled Consumer Connected Cars: Telematics, Insurance & In-Vehicle Applications 2015-2020, that Apple's CarPlay, and Google's Android Auto, something of an operating system for a car, will see a significant growth in user adoption.
As the products become an important part of the car of the future, new products will emerge, creating new business opportunities and increasing revenue.
Those products can be anything, from in-vehicle traffic solutions to gaming, Juniper Research claims.
Mobile phones will, sooner or later, be pushed out of the equation, and OEMs (original equipment manufacturer) will see it as an opportunity to gain more independence. They will act by integrating the likes of CarPlay, Android Auto or BlackBerry’s QNX.
Juniper Research also claims users will demand more technology in their cars, which goes to Apple’s and Google’s benefit. It mentions Amazon as an example of this behaviour, noticing how it integrated its voice controlled smart home service, Echo, with Ford’s SYNC in-vehicle system.
The new market is not without its obstacles, though. The increase in new OTT (over the top) services will raise consumer expectations, which will see Apple and Google running to deliver new application ecosystems, allowing them to download new services and functionalities.
In the end, Juniper Research concludes, users can expect “similar levels of speed, functionality and features that they experience in the smartphone ecosystem”.