Heating Connected Car Market: IT Giants Scrambling Over Connected Car Supremacy | BusinessKorea

Sunday, December 11, 2016

Global IT companies are competing to become first movers in the connected car sector.
Global IT companies are competing to become first movers in the connected car sector.
SEOUL, KOREA
2 March 2016 - 6:00pm
Michael Herh

Growing interest in connected cars is fueling competition among IT companies that want to become first movers in the connected car sector. Connected cars are hooked up to the Internet through telecommunication systems.     

Samsung Electronics took the wraps off “Samsung Connect Auto” at the World Mobile Congress 2016 held in Barcelona, Spain on Feb. 21. The system helps people safely drive cars and efficiently manage fuel consumption.    

 The small device bridges vehicle and LTE telecommunications and wireless Internet services. Samsung Connect Auto runs Tizen, an operating system of Samsung’s own development. When driving, drivers and passengers are able to enjoy games and streaming services of music and movies. “Samsung aims to take the leadership position in the connected car market ahead of others,” said Chris Penrose, a vice president of AT&T.

SK Telecom unveiled Tablet to Car (T2C), a tablet-type information system developed in concert with Renault Samsung Motors. If mounted on vehicles, the device offers drivers real-time traffic and weather information and music streaming services.  

LG Electronics is developing electronic car parts and even self-driving cars in partnership with GM, Mercedes-Benz and Volkswagen among others. Connected cars can differentiate automobiles and drive up demand for them since they can offer convenient services.   

This reason is compelling automakers to pay much attention to them.  

On top of that, as connected cars save much information about drivers, it is likely that they can expand into other service areas. Therefore, both IT companies and automakers are expediting their development in this sector.

Currently, Google and Apple are stealing the show in the connected car sector. Google and Apple dominating the OS market are increasing the number of models that can mix well with their “Android Auto” and “Apple CarPlay,” respectively.   

 Market surveyor BI Intelligence forecast that there will be 220 million cars in the world and among them, 88 million will be loaded with the connected car platform. The organization expects Google and Apple to enjoy a combined market share of 88 percent.

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