Globally, connected car production is set to grow almost ten times in the next five years from the present 6.8 million to 61 million in the year 2020, according to the latest study by Gartner, a research and advisory.
Production of new vehicles with data connectivity through a built-in communication device or via a mobile device is expected to reach over 12 million this year (2016), according to Gartner's report.
According to Gartner, a connected car is a vehicle capable of two-way wireless communication with an outside network for delivering digital content and services, transmitting telemetry data from the vehicle, enabling remote monitoring and control, or managing in-vehicle systems.
"The connected vehicle is the foundation for fundamental opportunities and disruptions in the automotive industry and many other vertical industries," says James Hines, the Research Director at Gartner.
"Connected vehicles will continue to generate new product and service innovations, create new companies, enable new value propositions and business models, and introduce the new era of smart mobility, in which the focus of the automotive industry shifts from individual car ownership to a more service-centric view of personal mobility."
Connected car technology will create opportunities for carmakers to generate after sales profits through sales of add-on services and feature upgrades, as well as improve the brand's loyalty for a customer through a personalised experience.
The technology will also enable business for other auto related businesses, like insurance, car rentals, ride-sharing services, and electric vehicle charging.
Gartner predicts that connected car applications in the future will drive a 150 percent increase in demand for information such as image detection and geolocation.
"As cars become more automated, they are being equipped with an increasing array of sensing technologies, including cameras and radar systems," Hines said.
"Many automobiles will use image detection as the primary means to identify and classify objects in the vicinity of the vehicle so they can provide more sophisticated responses and even have autonomous control," Hines noted.