Global spending on connected vehicles will hit US$29.6 billion in 2017

Rebecca Gibson
Rebecca Gibson
By Rebecca Gibson on 19 August 2016
Global spending on connected vehicles will hit US$29.6 billion in 2017

Worldwide spending on connected vehicles will reach US$29.6 billion and government spending on intelligent transportation systems will hit US$16.5 billion in 2017, according to IDC.

IDC predicts that automotive original equipment manufacturers (OEMs) who work with city leaders and state or local governments will be able to transform aspects of urban mobility by developing connected cars and viable Smart City ecosystems more quickly.

This will help automotive OEMs to evolve their products more quickly to compete with other transportation options and allow Smart City officials to integrate with new technologies in automobiles for the future Smart Street. By working together, the two groups could improve vehicle and street safety, reduce environmental impacts, mitigate urban congestion, evolve automobile design, and create new value-added services for consumers.

“Connected cars have reached critical mass and their interaction with the transportation infrastructure within Smart Cities is ongoing,” said Heather Ashton, research manager for IDC Manufacturing Insights, and Ruthbea Yesner Clarke, research director for IDC Government Insights Smart Cities Strategies. “Automotive OEMs and Smart City leaders will need to work closely to ensure the continued development of, and support for, connected car capabilities and services such as vehicle-to-vehicle and vehicle-to-infrastructure communications that will increasingly include autonomous operations.”

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