As Consumers Flock Towards Connected Cars, The Wireless Industry Benefits

18 August 2016 Dashboard Insights Blog
Authors: Lauren M. Loew

It is no secret that consumers are increasingly focused on connected cars. In a survey of consumers by Accenture, over 50% of consumers surveyed were already using some connected car services, 57% of those surveyed would like to have the ability to surf the internet via a monitor in the car, and 81% of consumers wanted a system like eCall in their car. Currently, connected-safety features generate the most revenues for connected car services, but driver assistance is expected to surpass safety as the top connected car revenue stream in 2017.

This has led to a sector of rapid expansion in the wireless industry.  During the second quarter of 2016, the wireless industry’s Internet of Things (IoT) growth exceeded phones and tablets combined.  Looking further ahead, a wireless industry consultant predicts that infotainment, such as music streaming, and telematics, such as navigation, fleet management, will make up 98% of all machine to machine traffic by 2021.

Within the IoT boom, the growth in connected cars is leading the pack.  During the second quarter of 2016, the connection of cars to cellular networks outpaced the number of new phones connected to cellular networks during that same time period.  AT&T saw a connected car onboarding pace double that of the connected tablets pace.  At the end of the first quarter of 2016, AT&T counted more than 8 million connected cars on its network and connected more than 50% of the new connected cars in the US.  Verizon’s recent acquisitions of connected car technology companies Telogis and Fleetmatics also reflects this increased focus by wireless companies on connected cars.  Now consumers just need to figure out how to use all of these exciting new connected-car features.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services