EMEA market for app-enabled cars to grow to 55m by 2020

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So says IHS Automotive adding that by 2020, 191 million vehicles worldwide will be enabled the apps as the car becomes the ‘new frontier for Apple’s and Google’s mobile competition’.  

Set to discuss this trend and other key growth areas for Western Europe at its IHS Forum in Berlin from 12-14 May, IHS Automotive says that EMEA represents a significant growth market for 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. By 2020, Google Projected Mode software will be sold in more than 28 million cars, and Apple’s CarPlay software will be sold 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 report author 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. OEMs will have to keep up to remain competitive.’

‘The in-car app market is a new frontier for Apple and Google’s mobile competition,’ added 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 will take the number one place in EMEA and worldwide sales by 2020, according to IHS. The company 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 have.

World consumer spend on mobile apps is set to grow from $24bn (€17.4bn) in 2014, to more than $40bn (€29bn) 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 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 said.

The IHS Forum, Berlin 2014 will be held at the InterContinental Hotel Berlin, from 12-14 May. Further information and delegate registration is available at http://ihsglobalevents.com/forum/berlin2014/

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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