Welcome!

News Feed Item

Global Apps Integration Software Units to Reach 370 Million Units by 2020; Google Projected Mode to Lead, According to IHS Automotive

The global auto industry will see more than 370 million Smartphone apps integration software units in-use by 2020, according to a recent report and forecast from IHS Automotive, part of IHS Inc. (NYSE: IHS), the leading global source of critical information and insight.

Original equipment manufacturers (OEMs) are expected to continue today’s trend of integrating smartphone apps that are controlled via a vehicle’s HMI or as part of an infotainment system controlled by the vehicle’s HMI through the remainder of the decade. The recent introductions of Google Projected Mode and Apple CarPlay have changed the industry landscape dramatically and both companies are expected to become clear leaders in Smartphone apps integration.

Cars with Google Projected Mode software are expected to top 100 million units by 2020, up from just 86,000 units in 2014. Cars with Apple CarPlay, with 105,000 units in 2014, will exceed 94 million units in 2020, a compound annual growth rate of 210 percent. These volumes will contribute significantly to the nearly 370 million Smartphone apps integration units expected in the automotive industry by 2020, from just 6.9 million units in 2014. MirrorLink, Aha by Harman, Ford SYNC AppLink and others are also included in these numbers.

“Apps for autos are growing rapidly and will have a profound impact on auto infotainment and connectivity in the next decade,” said Egil Juliussen, the report’s co-author and research director at IHS Automotive. “Auto apps will influence the competitive landscape among auto manufacturers and will even change the brand market share between them. OEMs will have to keep up to remain competitive.”

North America expected to lead apps integration

At a regional level, North America is expected to continue to lead the industry in automotive apps integration, with more than 115 million expected by 2020. This is due to the U.S. being the pioneer in deploying such systems and high Smartphone penetration and with extensive Smartphone apps usage. Western Europe will remain in second place through 2019 and will have over 65 million apps integration enabled cars in use by 2020. China will grow rapidly and will surpass Western Europe in 2020, with over 71 million apps integration enabled cars. As the apps integration technology and market matures, the growth will be driven by car sales, Smartphone penetration and apps availability.

OEM adoption and integration of apps in vehicles is expected to be led by General Motors, for whom embedded apps development for infotainment systems will continue to increase. GM also is using HTML5 as its apps platform, which is well-known by developers and predicted to continue as the standard for web apps and web content. This platform also creates a larger knowledge and competency base that the auto industry can leverage for growing a large auto apps portfolio.

Apps developed for an OEM’s Software Development Kit (SDK) are just beginning to gain interest in the automotive market and will grow in importance in the next decade, the IHS report says. “We anticipate the most innovative apps will come from apps developers using OEM SDK’s,” said Juliussen. GM is currently the leader in the embedded apps category.

Embedded infotainment apps currently have two approaches: current SDKs are either OEM-specific or multi-OEM specific. Growth in these sectors also is expected, though will not be as aggressive as some of the other options.

More than 36 million apps-enabled vehicles will be in use with Apple CarPlay in 2020, up from just over 0.1 million in 2014, according to the IHS Automotive forecast. Google Projected mode apps are expected to be included in more than 40 million vehicles in 2020, from less than 0.1 million in 2014.

“The in-car app market is a new frontier for Apple and Google’s mobile competition,” said Jack Kent, mobile analyst at IHS Technology. “Each is aiming to use their established expertise in delivering mobile apps and content into the new realm of automotive entertainment and services.”

Global app spending to hit $40 billion by 2020

World consumer spend on mobile apps is set to grow from $24 billion in 2014 to more than $40 billion by 2020. “While games will dominate, other services such as music, location and navigation will contribute to revenue growth,” Kent said.

IHS research shows that apps are the fastest growing digital content category. The rise of devices that connect to smartphones and tablets including cars and also wearable and other smart devices will further increase mobile app downloads and revenues.

App stores will be the key distribution channel for auto apps. “App stores have revolutionized how consumers access digital content and services, providing a global distribution, discovery and billing platform that will reach well beyond smartphones and tablets,” Kent said.

About IHS (www.ihs.com)

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2014 IHS Inc. All rights reserved.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
Interested in leveling up on your Cloud Foundry skills? Join IBM for Cloud Foundry Days on June 7 at Cloud Expo New York at the Javits Center in New York City. Cloud Foundry Days is a free half day educational conference and networking event. Come find out why Cloud Foundry is the industry's fastest-growing and most adopted cloud application platform.
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 20th Cloud Expo, Tom Eck, Industry Platforms CTO at IBM Cloud, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing developers ...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...