Internet-connected cars will account for 90 per cent of all new vehicle sales within the next six years, new data from Telefónica suggests.
After carrying out a study with consultancy Booz & Co, the telecoms giant predicted that the global market will be worth $113 billion by the end of the decade – more than four times its current value.
The forecasts come after Telefónica signed a deal with Tesla to connect the all of the firm’s Model S vehicles in Europe to the internet.
The CEO of Telefónica Multinational Solutions, Jose Luis Gamo, was quoted by gomonews.com as saying: “As we accelerate our transformation into a digital telco we see lots of opportunities to empower consumers.
“Connected cars that provide drivers with more information and a better and safer driving experience is a perfect example of this.”
The Model S has become one of the more high-profile vehicles in a market-wide drive to develop a new breed of environmentally-friendly ‘smart’ cars.
According to ft.com, Telefónica will oversee the project with the help of its European partner network, which comprises UK-based O2, Dutch firm KPN and Movistar in Spain.
Earlier this year, Tesla, which is based in California, announced that AT&T would handle the vehicle connections in the US, its biggest market.
