IDC defines connected vehicles as those that contain software, sensors, and IP-enabled connectivity. Connected vehicles and electric vehicles are the two core strategies for China's car manufacturing industry development. The total market size will grow from US$4.87 billion in 2016 to US$10.5 billion by 2021 at a compound annual growth rate of 16.5%. While traditional car manufacturers and emerging Internet companies and carriers are coexisting in this ecosystem, the market is representing a competitive landscape.
"All stakeholders will be working intimately and comprehensively with various strategic groupings to improve end-user experience. Technology development will be driven by the leading technical suppliers. However, the standard regulation and business model innovation ask all stakeholders to consider their partnership strategies," says Antonio Liu, senior market analyst, Telecom and Internet of Things Research Group, IDC China.