A report has predicted the number of in-car applications is expected to rise to 269 million by the end of 2018, with a net market value of almost $20bn.
By 2018, the report says, most cars will already come with integrated apps as standard, and the smartphone will have become an in-vehicle hub.
The findings were reported in Juniper Research's latest study of the telematics sector.
Juniper defines telematics as the use of wireless technology and in-vehicle IT that passes information to and from vehicles to improve driver experience.
The analysts at Juniper research identified a number of factors propelling growth in the sector. Their findings included direct integration of SIMS and apps into headset units, smartphone tethering, cheaper data packages and lower roaming costs.
Juniper also said that solutions such as Apple Car play would have a major role in promoting in-vehicle apps to the mainstream by allowing users to safely control Apple devices behind the wheel.
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