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
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
StackIQ has announced the release of Stacki 3.2. Stacki is an easy-to-use Linux server provisioning tool. Stacki 3.2 delivers new capabilities that simplify the automation and integration of site-specific requirements. StackIQ is the commercial entity behind this open source bare metal provisioning tool. Since the release of Stacki in June of 2015, the Stacki core team has been focused on making the Community Edition meet the needs of members of the community, adding features and value, while ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
The competitive landscape of the global cloud computing market in the healthcare industry is crowded due to the presence of a large number of players. The large number of participants has led to the fragmented nature of the market. Some of the major players operating in the global cloud computing market in the healthcare industry are Cisco Systems Inc., Carestream Health Inc., Carecloud Corp., AGFA Healthcare, IBM Corp., Cleardata Networks, Merge Healthcare Inc., Microsoft Corp., Intel Corp., an...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
Continuous testing helps bridge the gap between developing quickly and maintaining high quality products. But to implement continuous testing, CTOs must take a strategic approach to building a testing infrastructure and toolset that empowers their team to move fast. Download our guide to laying the groundwork for a scalable continuous testing strategy.
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.