The world `s self driving car market, including connected car, is on the verge of winning the market for the future, while Korea` s connected car market is small compared to major advanced countries. It is pointed out that the domestic car industry and the ICT industry need to strengthen cooperation and lead the standardization of future car technology with our proprietary technology in order to secure competitiveness in the future car sector.

According to the German market research firm Statista on September 7, the domestic market for connected cars was estimated at USD 249.5 million (about KRW 281.6 billion) this year. In comparison, the US market for connected cars this year was USD 8,194 million (about KRW 9,250 billion), 33 times more than Korea.

The market size of Korean connected cars has fallen far behind that of Germany and China. The Chinese market this year was USD 3,038 million, and Germany USD 2,620 million, more than ten times more than Korea. Japan, too, was more than five times bigger at USD 1,735 million. However, Korea is expected to grow nearly double every year on the basis of the advanced ICT infrastructure. The market size is expected to increase by six times this year to USD 177.9 million in 2021.

Connected cars, which are being sourced from around the world and by global players, is an intermediate step between autonomous cars and cars that are now mass-producing. Connected cars are a fusion of ICT technology and vehicles that have Internet access. The industry expects the connected car market to continue its high growth in the future. The US market analysis firm Transparency Market Research predicts that the global market for curtained cars will grow to USD 132 billion in 2019. BI intelligence also predicts that 69 percent of the world`s automotive production in 2020 will account for 75 % of the 92 million units in 2020.

Developed countries such as the US and ICT companies have been hurrying to develop connected cars early on through cooperation. GM is working on a joint project with mobile carrier AT & T, and provides drivers with directions, restaurants, accommodation reservations, and location information through the `OnStar` telematics system. Ford is also working with Microsoft to develop a cloud connectivity system. Verizon, a mobile carrier, also develops a self-diagnostic diagnostic device to provide road guidance, real-time vehicle diagnostics, and Bluetooth capabilities.

IT companies such as Alibaba and Baidu and car makers are working together to speed up the development of jointly connected car platforms in China. Especially, the Chinese government is actively promoting joint development so that domestic companies can take the lead in the market.

Hyundai Motor, SK Telecom and Naver are developing related technologies in Korea. However, unlike overseas, development is being done in a closed form of independent enterprise research rather than a joint development system leading to automobile, communication, and electronics, pointing out that there is a limit to rapid growth. Experts point out that automakers and ICT companies should work together to build a connected car platform and actively collaborate with venture companies. "There will be new business opportunities in the content industry, insurance, finance, and public services with the development of Connected Car technology," an industry expert said. "We need to lead the standard with the technology that goes with it by leveraging ICT infrastructure, which is Korea`s strength."

By Choi Yong Soon cys@


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