Era of Connected Car

The growth of the in-vehicle infotainment (IVI) industry is expected to speed up in Korea
The growth of the in-vehicle infotainment (IVI) industry is expected to speed up in Korea

 

The growth of the in-vehicle infotainment (IVI) industry is expected to speed up as South Korean companies such as the Hyundai Motor Group, Samsung Electronics, SK Telecom and Naver are jumping into the industry that has been led by Google and Apple.

According to industry sources, the size of the global connected car market is forecast to grow from US$26.3 billion to US$120 billion between 2015 and 2020 with an average annual growth rate of 35%. The size of the South Korean connected car market is estimated to grow from US$0.5 billion to US$2.3 billion during the same period.

These days, an increasing number of companies are developing their own automotive electronic components and infotainment systems to take the lead in the market. For example, Hyundai Motor Company is working on its own connected car OS and Samsung Electronics is concentrating its resources on automotive electronic components.

Naver jumps into the same market in July this year with Green Car, a South Korean vehicle sharing company. Naver’s IVI platform is expected to come with an artificial intelligence (AI) assistant recognizing human voices. SK Telecom and KT are utilizing their voice recognition-based AI assistants in the same market, too.

“Alibaba and Microsoft recently formed partnerships for connected car development with Shanghai Automotive Industry Corporation and Toyota, respectively,” said an industry source, adding, “Likewise, South Korean companies are expanding their cooperation in the same industry.”

 

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