Macquarie: The Global Connected Car Market Could Be $150 Billion By 2020
Macquarie issued a report highlighting the potential of the connected car market amid predictions that over 75 percent of vehicles manufactured will be LTE-enable by 2020.
Analyst Amy Yong wrote that the growth potential of many companies will be highly influenced by this trend and that the global connected car market could reach $150 billion by 2020.
One of the main highlights of the report was that entertainment options have the potential to expand over the coming years. Companies primed to take advantage of this trend in infotainment include Sirius XM Holdings (NASDAQ: SIRI) and Apple Inc. (NASDAQ: AAPL). While Sirius already has 29 million subscribers, Apple, with their service Apple CarPlay, may be poised to grab market share due to an impressive variety of entertainment offerings.
Related Link: How To Invest In Driverless Cars In 2016
Furthermore, these services are becoming increasingly integrated and seamless every year with services such as Ford Motor Company (NYSE: F)'s Sync3 service gaining popularity as well.
The other primary highlight of Yong's report is the growing opportunity in Telematics. General Motors Company (NYSE: GM)'s OnStar service has a dominant market share position, however, Macquarie believes that competitors are quickly implementing new products into their automobiles to take advantage of this potential $50 billion global market opportunity by the year 2020.
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