Smartphone apps integration software from Apple and Google is forecast to be sold in more than 55m cars by 2020 in Europe, the Middle East and Africa (EMEA), according to a new study by IHS.
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, the Google software will be sold in more than 28m cars and Apple’s in more than 27m cars. These cumulative sales will be greater than sales in China during the same period.
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“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. “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.”
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 the Apple and Google products 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. IHS forecasts that Google software will be enabled in nearly 100m cars. CarPlay will be a close second place with 92m cars. Many cars sold will have both as the OEM cannot know which smartphone their buyers will have.
World consumer spend on mobile apps is set to grow from US$24bn in 2014 to more than $40bn by 2020.
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By GlobalData“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 will be the key distribution channel for auto apps. “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.
