Connected cars drive major new opportunity for media cos | Media Analysis | Business | News | Rapid TV News
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Research from Omdia has revealed the connected car market is the latest battleground for media companies fighting for a piece of an addressable market that is set to be comparable in scale to that of pay-TV set-top boxes by 2025.
Connected cars 4G and 5G 13Oct2022
The research believes that the push towards autonomous cars – allowing the driver to consume media– will be a key longer-term segment for media companies to target. The study expects connected car numbers to increase from 230 million in 2021 to reach 571 million cars on the road by 2025.

“We are seeing a strong growth of in-car display solutions” commented David Tett, principal analyst at Omdia, “Starting with the insertion of screens in the back and a front passenger screen, the media opportunity will arrive quickly in cars to the benefit of telcos, media companies and advertising partners thanks to location-driven services.”

Omdia noted that monetisation opportunities are already being seen in the market, with infotainment add-on bundles allowing for renewable after sales revenues. Other major opportunities cited include whilst cars are parked to charge thus enabling video and advertisements to be consumed and upgraded hardware packages at point of sale. The report also highlighted the fact that CarPlay 2, Android Automotive and Amazon’s automotive Fire TV solution are already gaining partnerships in the market and many more will come as automotive vendors make important decisions about pursuing purely first-party in car solutions or working with external partners.

“[Connected] vehicles provide the next battlefield for the likes of Apple, Google and Amazon,” added to Daniel Sutton, principal analyst at Omdia. “These companies have fought over the consumers’ home for the last decade and that is now expanding into automotive. New partnerships are being announced on a regular basis and there is scope for companies across the value chain to still seek and sign partnerships, but there is a hesitancy from some automotive brands to give up control of the valuable in-car media experience. Early-mover advantage could well be key here, so potential partners need to engage quickly or risk losing out on a big opportunity.”