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Cars learning to replace humans creates a $250 billion market by 2025

Deep learning machines are taking over a large portion of drivers’ automotive tasks and will completely take over driving in 10 years, according to a recently published report by IoT [Internet of Things] market research firm ON World (www.onworld.com).

“The connected car is experiencing exponential technological advancements and enormous investment over the past three years,” says Mareca Hatler, ON World’s research director.  “This accelerated growth can be seen in the patents granted, favorable government regulations and the videos of Tesla cars driving their occupants to work while they shave.”

Over the past two years alone, $40 billion has been invested in connected car-related companies and associated technologies.  That staggering amount is targeting IoT technologies such as machine learning, 3D mapping, sensor processing, image processing, cloud-based services, data analytics, advanced LAN/WAN/CAN networks, smart device integration, car apps and others.  The key point is that the connected car is the largest developer opportunity since 2007 and the iPhone.

ON World’s analysis of 2,300 patents found that advanced driver assistance (ADAS) and autonomous driving make up the largest percentage of connected car awarded patents.  ON World’s 2017 survey with 90 IoT professionals found that two-thirds believe that connected car services will be widespread in 10 years.  Over half believe that autonomous driving and car/ride-sharing will be widespread by this time.  Another survey conducted by ON World in March 2017 with 1,000 consumers found that 3 in 10 will pay $10 or more per month for connected car services such as roadside assistance, collision avoidance and diagnostics. 

By 2025, there will be 300 million connected cars up from 37 million in 2016.  Annual revenues for connected car equipment and associated services will surpass $250 billion by this time.

ON Word’s recently published report, “Connected Car Markets,” is based on 1,100 interviews and surveys as well as an in-depth intellectual property evaluation.  It investigates the global market opportunity for connected car systems and services with six-year market size forecasts for Roadside services, Diagnostics, Infotainment, Navigation, ADAS and Car/Ride-sharing; the results of two 2017 surveys, 2,300 analyzed patents; the value system and profiles for 70-plus connected car companies. 

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