The Auto Channel
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

By 2020, 90 percent of new cars to have some form of in-vehicle connectivity

connected car (select to view enlarged photo)

MOUNTAIN VIEW, CA--Nov. 14, 2013: There is a palpable reorientation of purchasing habits among American citizens as the country continues its march toward urbanism. In the future, 85 percent of the country's population is anticipated to live in urban areas, while North America could see the emergence of three Mega Cities, 11 Mega Regions, and seven Smart Cities by 2025. One of the biggest gainers of this massive-scale urbanization is the automotive industry, particularly autonomous driving technologies, as there will be high demand for increased connectivity among vehicles and roadway infrastructure for better road safety. In addition, people over the age of 65 will account for 20 percent of the population and constitute one of the largest consumer groups with specific transportation needs.

Recent analysis from Frost & Sullivan (Frost Automotive), New Mega Trends in the US Automotive Sector, analyzes 10 emerging Mega Trends taking into account new population patterns and purchasing habits. These Mega Trends will drive growth and innovation in the field of mobility in the United States, and this analysis provides insights into the business opportunities that arise from these trends.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Connectivity is set to trend in vehicular technology due to the escalating demand for seamless navigation, telematics, and entertainment. In the U.S., vehicle-to-vehicle (V2V) technology is poised to take off in a big way between 2015 and 2020, and vehicle-to-infrastructure (V2I) technology is expected to follow suit between 2020 and 2025.

Cities can potentially contribute approximately $1.1 trillion to the U.S. gross domestic product by catering to the demand for intelligent and Smart City technologies, such as integrated door-to-door solutions, interoperable technology networks, and intelligent transport city solutions.

By 2020, the United States is likely to have nearly 270 million Internet users and be home to more than 50 percent of consumer satellite broadband Internet users globally. Unlike Europe, North American original equipment manufacturers (OEMs) and dealers are pursuing digitization models through existing stores.

"It is forecast that by 2025, 20 percent of global retailing will be conducted through online channels," said Frost & Sullivan Mega Trends Research Analyst Shwetha Surender. "By 2015, more than 50 percent of global new car sales will be influenced by the Web, online promotions, online research, the virtual showroom experience, and online purchasing."

Therefore, the industry is making significant investments in updating store technology, staff training, and digitally integrating various aspects of the car retailing process. Although they are investing in in-store tools, such as tablets and kiosks, the spotlight is firmly on the utilization and recalibration of off-store digital media such as websites, apps, and social media.

"The evolution of a bricks-and-clicks model is changing the way most industries retail," noted Surender. "However, it is most evident in the luxury market, where premium automotive OEMs are taking a more digital approach to car retailing."

Eventually, the United States is expected to lead in the smart transport market in North America and is well on its way to achieving its goal of becoming the world's largest real-world tester of smart-vehicles.

New Mega Trends in the US Automotive Sector is part of the Mega Trends Growth Partnership Service program. Frost & Sullivan's related research services include: Chinese Electric Vehicle Market, Bricks and Clicks, Global Mega Trends and their Implications on Urban Logistics, and Delivering to Future Cities - Mega Trends Driving Urban Logistics. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.