In the year of the pandemic, the market for solutions for connected cars and smart solutions reached a value of €1.8 billion.
A third of the market is ADAS (€600 million) integrated into the new models. For example, automatic emergency braking or maintenance of the vehicle in lane.
The main component is the Connected Car solutions, which in 2020 slow their race by stopping at 1,18 billion euros (-2%). The connected cars had grown in double digit in both 2018 (+31%), and 2019 (+14%), respectively.
A trend in line with that recorded in the main Western countries, which ranges from -5% to +5%. A very positive figure when considering the collapse of the overall market for cars. In fact, the latter lost 27.9% and scored 535 thousand vehicles sold less.
The distribution of connected vehicles grew: 17.3 million at the end of the year, 45% of the total, compared with 16.7 million in 2019.
The most common solutions for connected car are GPS/GPRS boxes for the location and recording of driving parameters for insurance purposes (55% of the market, -11%). But the main driving forces are the cars that are natively connected via SIM (18%, +48%), or with bluetooth systems on board the vehicle (27%, +15%).
The component of services that exploit data collected by connected cars, which is worth 340 million euros (+3%), is also growing.
Connected Car is now a familiar reality to Italian consumers
71% have heard about connected cars or smart cars, particularly between men (75%) and young people under 35 (75%). Over one third of consumers have at least one of the smart features for the car (36%). Especially voice assistants to call, send messages and get road directions (18%), active safety devices such as automatic emergency braking (13%). Also spread infotainment systems such as Car Play and Android Auto (13%).
Almost eight out of ten Italians plan to buy a car connected in the future (79%), but the pandemic has changed priorities and budgets for the purchase. 24% has become a less urgent need and only 17% is now more important. 28% have less budget available, for the icing 8% has grown. §
Despite concerns about privacy, most users are willing to share their car data to activate additional services (57%).
The emergency did not stop the Smart Mobility: it is a relevant theme for 85% of municipalities with more than 15 thousand inhabitants and the number of municipalities that started at least one project in this area continues to grow, from 54% in 2019 to 60% in 2020.
These are the results of the research of the Connected Car & Mobility Observatory of the School of Management of the Politecnico di Milano.
Benefits of Connected Cars
The market is still very hot and the interest in connected cars is still strong, even in a year marked by the health emergency. Interest motivated by the many benefits it can generate for consumers, businesses and PA.
The increased safety of the driving assistance systems integrated into the new models is one of the main reasons for the purchase for end users. Appreciate features such as automatic emergency braking or testing of vehicles in the blind angle.
Another opportunity offered by ADAS systems is the possibility of entering into insurance policies where the premium varies according to how many and which of these systems are present in the vehicle.
The Observatory estimates that for a car with ADAS systems with a cylinder capacity of between 1,300 and 1,800 cc and with an initial premium of 170-200 euros per year it is possible to reduce the risk of accidents by 15-20%, resulting in a discount on the
The main benefit for companies is related to the management of business cars (smart). Data from connected cars allow to plan maintenance operations in advance, with time and cost savings, to limit cases of fraudulent use (e.g. the use of company vehicles for personal rather than work purposes) and to encourage a more responsible driving style ( Considering a period of five years, the Observatory estimates for the passage to a fleet of connected cars a net present value (Net Present Value) of more than 3 thousand euros in the case of a small enterprise and 48 thousand euros in the case of an average company, with a time
In addition to the economic benefits, smart cars can also make a contribution to environmental sustainability. In fact, autonomous and connected vehicles reduce greenhouse gas emissions and help limit traffic time.
The Centre’s estimates in this respect are undoubtedly encouraging.
In the case of a commuter travelling at peak hours with a CAV penetration rate of 70%, it is possible to cut the time spent in traffic by 63%. if the CAV is V2V type (e.g. equipped with vehicle-vehicle communication systems) and In terms of environmental impact, in Milan alone there would be about 400 tons of CO2 emissions less each year using V2V and 2,700 tons less per year with V2I systems.
The potential offered by Smart Car data
As car related is increasingly spread, businesses begin to see the potential linked to the data they can collect and make available.
A market that, according to ResearchMarket, is already worth 4 billion dollars, considering exclusively data from smart cars. And that will grow further in the coming years.
Some examples of data enhancement collected by connected cars are Smart Road projects. Where drivers can choose to pay an additional fee to use a dedicated lane and avoid traffic. The possibility offered by vehicle manufacturers to pay for certain features of the car only when using, thanks to the data communicated by the car; insurance policies for hybrid car owners with a customized premium based on the power supply used.
Accelerate Smart Mobility
The emergency health has increased the attention of Italian municipalities for Smart Mobility. The 85% of municipalities with more than 15 thousand inhabitants consider it a relevant or fundamental theme. 42% of the pandemic made it even more priority. Only one in ten believes it’s less urgent than it was in the past.
One fifth of the municipalities had to postpone the start of projects already planned due to Covid19 and 51% of the cases were slightly slowed down.
The number of municipalities that started at least one Smart Mobility project continued to grow: from 54% in 2019 to 60% in 2020.
In comparison with other projects in the field of Smart City, Smart Mobility projects are more advanced. Only 14% are in a pilot phase (compared to 46% of Smart City projects) and 50% are already operational (compared to 25% of Smart City initiatives).
Technologies for Connected Car
In recent months, important developments have been observed in the field of intelligent and connected car technologies. The V2X communication networks are expanded, allowing vehicles to communicate with each other (V2V