Europe, the Middle East and Africa (EMEA) represents a significant growth market for original equipment manufacturers (OEMs), Apple, Google, and for app developers. In 2014, IHS Automotive forecasts that Google Projected Mode and Apple’s CarPlay will only be available in 7,000 and 52,000 cars sold, respectively. But by 2020, Google Projected Mode software will be sold in more than 28 million cars, and Apple’s CarPlay software in more than 27 million cars. These cumulative sales will be greater than sales in China during the same period.

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

‘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 to develop mobile apps and content into the new realm of automotive entertainment and services.’

Currently, Western Europe leads the entire EMEA region in smartphone apps integration software due to its lead in automotive sales and smartphone app sales. But by 2020, Eastern Europe, the Middle East and Africa will see spikes of growth of their own. By 2020, cumulative car-enabled sales of Apple’s CarPlay and Google’s Projected Mode in the Middle East and Africa will top sales in Korea and sales in Eastern Europe will top sales in Japan.

While Apple is the current leader in announced OEM design wins for smartphone apps integration in EMEA and worldwide, Google could take the number one place in EMEA and worldwide sales by 2020. IHS forecasts that Google Projected Mode software will be enabled in nearly 100 million cars. Apple’s CarPlay will be a close second place with 92 million cars sold with CarPlay software. Many cars sold will have both Apple CarPlay and Google Projected Mode, as the OEM does not know which smartphone their buyers will use.

World consumer spend on mobile apps is set to grow from $24 billion (€17bn) in 2014, to more than $40 billion (€30bn) 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 revolutionised how consumers access digital content and services, providing a global

distribution, discovery and billing platform that will reach well beyond smartphones and tablets,’ Kent concluded.distribution, discovery and billing platform that will reach well beyond smartphones and tablets,” Kent said.