Global Apps Integration Software Units to Reach 370 Million Units by 2020; Google Projected Mode to Lead, According to IHS

  Global Apps Integration Software Units to Reach 370 Million Units by 2020;
  Google Projected Mode to Lead, According to IHS Automotive

General Motors Expected to Lead All Other OEMs in Apps Integration

Business Wire

SOUTHFIELD, Mich. -- May 9, 2014

The global auto industry will see more than 370 million Smartphone apps
integration software units in-use by 2020, according to a recent report and
forecast from IHS Automotive, part of IHS Inc. (NYSE: IHS), the leading global
source of critical information and insight.

Original equipment manufacturers (OEMs) are expected to continue today’s trend
of integrating smartphone apps that are controlled via a vehicle’s HMI or as
part of an infotainment system controlled by the vehicle’s HMI through the
remainder of the decade. The recent introductions of Google Projected Mode and
Apple CarPlay have changed the industry landscape dramatically and both
companies are expected to become clear leaders in Smartphone apps integration.

Cars with Google Projected Mode software are expected to top 100 million units
by 2020, up from just 86,000 units in 2014. Cars with Apple CarPlay, with
105,000 units in 2014, will exceed 94 million units in 2020, a compound annual
growth rate of 210 percent. These volumes will contribute significantly to the
nearly 370 million Smartphone apps integration units expected in the
automotive industry by 2020, from just 6.9 million units in 2014. MirrorLink,
Aha by Harman, Ford SYNC AppLink and others are also included in these

“Apps for autos are growing rapidly and will have a profound impact on auto
infotainment and connectivity in the next decade,” said Egil Juliussen, the
report’s co-author and research director at IHS Automotive. “Auto apps will
influence the competitive landscape among auto manufacturers and will even
change the brand market share between them. OEMs will have to keep up to
remain competitive.”

North America expected to lead apps integration

At a regional level, North America is expected to continue to lead the
industry in automotive apps integration, with more than 115 million expected
by 2020. This is due to the U.S. being the pioneer in deploying such systems
and high Smartphone penetration and with extensive Smartphone apps usage.
Western Europe will remain in second place through 2019 and will have over 65
million apps integration enabled cars in use by 2020. China will grow rapidly
and will surpass Western Europe in 2020, with over 71 million apps integration
enabled cars. As the apps integration technology and market matures, the
growth will be driven by car sales, Smartphone penetration and apps

OEM adoption and integration of apps in vehicles is expected to be led by
General Motors, for whom embedded apps development for infotainment systems
will continue to increase. GM also is using HTML5 as its apps platform, which
is well-known by developers and predicted to continue as the standard for web
apps and web content. This platform also creates a larger knowledge and
competency base that the auto industry can leverage for growing a large auto
apps portfolio.

Apps developed for an OEM’s Software Development Kit (SDK) are just beginning
to gain interest in the automotive market and will grow in importance in the
next decade, the IHS report says. “We anticipate the most innovative apps will
come from apps developers using OEM SDK’s,” said Juliussen. GM is currently
the leader in the embedded apps category.

Embedded infotainment apps currently have two approaches: current SDKs are
either OEM-specific or multi-OEM specific. Growth in these sectors also is
expected, though will not be as aggressive as some of the other options.

More than 36 million apps-enabled vehicles will be in use with Apple CarPlay
in 2020, up from just over 0.1 million in 2014, according to the IHS
Automotive forecast. Google Projected mode apps are expected to be included in
more than 40 million vehicles in 2020, from less than 0.1 million in 2014.

“The in-car app market is a new frontier for Apple and Google’s mobile
competition,” said Jack Kent, mobile analyst at IHS Technology. “Each is
aiming to use their established expertise in delivering mobile apps and
content into the new realm of automotive entertainment and services.”

Global app spending to hit $40 billion by 2020

World consumer spend on mobile apps is set to grow from $24 billion in 2014 to
more than $40 billion by 2020. “While games will dominate, other services such
as music, location and navigation will contribute to revenue growth,” Kent

IHS research shows that apps are the fastest growing digital content category.
The rise of devices that connect to smartphones and tablets including cars and
also wearable and other smart devices will further increase mobile app
downloads and revenues.

App stores will be the key distribution channel for auto apps. “App stores
have revolutionized how consumers access digital content and services,
providing a global distribution, discovery and billing platform that will
reach well beyond smartphones and tablets,” Kent said.

About IHS (

IHS (NYSE: IHS) is the leading source of information, insight and analytics in
critical areas that shape today’s business landscape. Businesses and
governments in more than 165 countries around the globe rely on the
comprehensive content, expert independent analysis and flexible delivery
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and confidence. IHS has been in business since 1959 and became a publicly
traded company on the New York Stock Exchange in 2005. Headquartered in
Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth
and employs more than 8,000 people in 31 countries around the world.

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