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Connectivity as an Enabler for Growth in the Automotive Industry
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The automotive industry is a mature one. However, China is experiencing the opposite. The number of private cars is expected to increase at a compound annual growth rate (CAGR) of 6.7% over a 7-year period to reach 277.7 million by 2023. At present, new cars make up more than 50% of the car dealers' revenue in China, which offers more potential for them to be fitted with connectivity. Connected cars account for 1.9% of the total car population. They are likely to account for 53.4% of the total by 2023 as embedded connectivity becomes mainstream.
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