'Connected' Car Production To Hit 61 Million In 2020: Report

New Delhi: Production of "connected" cars is growing rapidly in both mature and emerging automobile markets and poised to touch 61 million in 2020, research firm Gartner said.

According to Gartner, the production of new automobiles equipped with data connectivity, either through a built-in communications module or by a tether to a mobile device, is forecast to reach 12.4 million by the end of 2016 from 6.85 million in 2015.

A connected car is an automobile that is equipped with internet access, and usually with a wireless local area network.

This allows the car to share Internet access with other devices both inside as well as outside the vehicle, thus enabling remote monitoring and control or managing in-vehicle systems.

"The connected vehicle is the foundation for fundamental opportunities and disruptions in the automotive industry and many other vertical industries," Gartner research director James Hines said.

Connected vehicles will continue to generate new product and service innovations, create new companies, enable new value propositions and business models, and introduce the new era of smart mobility, he added.

Gartner said the connected car technology will create opportunities for automakers to generate post-sale profits through sales of additional services and feature upgrades, as well as enhance brand loyalty through a more personalised customer experience.

"It will also enable innovations in adjacent businesses, such as insurance, car rentals and ride-sharing services, and electric vehicle charging," it said.