Cars drive internet of things

Volkswagen - WCWhile Volkswagen is in deep water worldwide because it tampered with energy efficiency software, the car industry as a whole is leading the way implementing the internet of things (IoT).

ABI Research said that by 2020, there will be $60 billion worth of global telematics and “infotainment” service revenues.

But the surprising thing is that it will be 3G and not 4G networks that will be the primary connection technology.

4G won’t come into its own until after 2020, according to research director Dan Shey.

He said that there will be exceptions to the general rule that vertical markets are slow to implement the latest technology – with the US, Korea and Japan implementing 4G but even then that won’t happen until 2019 or 2019.

By 2020, vendors including Ericsson, Verizon, Wireless Car and Airbiquity will grab the lion’s share of the market.

The car industry will also shift into a cloud based approach to connect everything up.

ABI believes the IoT will be powered by open source hardware reference designs and third party mobile integration, putting pressure on existing vendors like Harman and Bosch to radically shift their design models.