The rapidly evolving automotive industry is creating a range of mobility services and solutions that allow people to get from one place to another in a way that benefits the consumer, reduces the impact in the environment and decreases road traffic.
There are two groups involved in the tech revolution. In one hand, we have the automakers that know they need to innovate, change their business plans, acquire new companies; in the other hand, we have technology disruptor companies such as Google, Apple, Uber.
Both groups could pursue this goal separately but what is so attractive to the investment community is that there is a great need for collaboration, which is powering a very fertile merger and acquisition environment, according to TU-Automotive.
According to research from Statista’s Digital Market Outlook, the revenue received from the US connected car market will grow to $21.2 billion in 2020. The area of the industry that is projected to create the most revenue ($13 billion) is safety and driving assistance, although in-car content, navigation, diagnostics and maintenance also make significant contributions.
To have a strong driving assistance, having all cars connected is crucial. Tech companies like Carandus.com contribute to the development of the connected car for the future.
Car sharing will account as one fifth of this sector, generating $335 billion by 2025, according to PwC.