Connectivity of a car – the integration with personal mobile devices and the internet – is becoming a major battleground for the auto industry.
Cars will play a significant role in the internet of things – the network of everyday objects being connecting to the internet and collecting personal data on how they are being used.
It is one area where Apple will be looking to make a major impact when it launches its first electric vehicle in H2 2018-H1 2019.
In the chart below, VW is predicting that the proportion of cars connecting to the internet will rise from 10% in 2015 to 17% in 2018. At the same time the number of smartphone users in the world will increase by over 600m people.
While the auto industry’s existing customer base are less concerned with connectivity of their vehicle, manufacturers sees it vital to attracting a new generation of buyers.