June 7, 2017—Because smartphone adoption has increased significantly in recent years, the need for integrating smartphones with the vehicle systems is expected to grow further, according to Technavio.

According to a research report released by Technavio, the global connected car market is expected to reach $144.95 billion by 2020 and growing at a CAGR of more than 32 percent. The demand for in-vehicle connectivity and telematics has led to technological improvements, which aim at enhancing the overall in-vehicle experience of both the passengers and drivers. The report also indicates that smartphone penetration across the world has increased significantly in the recent years, as more emerging markets are now adopting to new technologies.

It is estimated that the global smartphone penetration was about 25 percent in 2015 and it is expected to reach 38 percent by 2020. There has been a rise in demand for high resolution Human Machine Interface, which can be integrated with smartphones.

According to Neelam Barua, a lead automotive electronics analyst from Technavio, "The luxury car segment will register high adoption of embedded solution as cost is not a parameter for this segment, and these OEMs create differentiation for their product by developing the unique system for their models… Consumers prefer availability of a strong application base for their connected devices. For instance, Android operating system for smartphones has the highest number of users in the market owing to its support for an array of third-party applications."