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Alphabet (GOOGL) to Boost Car Infotainment Reach With Porsche
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Alphabet’s (GOOGL - Free Report) Google continues to gain momentum in the car infotainment space and solid traction among the automakers on the back of its robust technology and user-friendly apps.
This is evident from the latest discussions between Google and Porsche. Reportedly, the latter is in talks to integrate the former’s software into the car cockpit.
Notably, the deal would boost the adoption rate of Google Automotive Services.
Further, it would give Porsche’s customers access to Google apps like Google Maps and Google Assistant. Car owners won’t be required to connect their vehicles to their Android phones at all.
Hence, the user base of these apps is expected to expand if the underlined deal strikes.
Apart from the latest talks with Porsche, Google has won remarkable deals from well-recognized car makers.
General Motors and Ford (F - Free Report) have already incorporated Google software into their vehicles’ infotainment systems through Google Automotive Services. Moreover, Ford is set to roll out several cars with infotainment systems powered by Android this year.
Further, Volvo has integrated Google infotainment systems into its vehicles. Its cross-country models like XC60, S90, V90 and V90 feature built-in Android-powered infotainment systems.
Growth Prospects
Per the latest report from Polaris Market Research, the in-vehicle infotainment market is expected to register a CAGR of 10.9% between 2022 and 2030.
According to a report from Straits Research, the market is anticipated to hit $50.64 billion by 2031, registering a CAGR of 10.3% between 2023 and 2031.
Further, a Grand View Research report indicates that the global automotive infotainment system market is expected to witness a CAGR of 9.7% between 2023 and 2030.
Per a report from Mordor Intelligence, this market is likely to reach $36.6 billion by 2028 with a CAGR of 6.8% between 2023 and 2028.
Google’s winning deals with auto makers, along with its user-friendly Android operating system and robust vehicle infotainment software, position it well to capitalize on the abovementioned growth prospects.
Moreover, its expanding footprint in this promising market is expected to aid its parent company, Alphabet, in winning investors’ confidence in the near term.
Notably, GOOGL has lost 27.6% over a year against the industry’s loss of 26.9%.
Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple (AAPL - Free Report) , which is also leaving no stone unturned to bolster its presence in this booming market.
Notably, Apple is gaining momentum on the back of its advanced software for vehicles, known as CarPlay, which has evolved from an infotainment system to an all-round in-car software solution.
Recently, Volvo incorporated CarPlay into its new Android powered vehicles. This remains a positive.
Image: Bigstock
Alphabet (GOOGL) to Boost Car Infotainment Reach With Porsche
Alphabet’s (GOOGL - Free Report) Google continues to gain momentum in the car infotainment space and solid traction among the automakers on the back of its robust technology and user-friendly apps.
This is evident from the latest discussions between Google and Porsche. Reportedly, the latter is in talks to integrate the former’s software into the car cockpit.
Notably, the deal would boost the adoption rate of Google Automotive Services.
Further, it would give Porsche’s customers access to Google apps like Google Maps and Google Assistant. Car owners won’t be required to connect their vehicles to their Android phones at all.
Hence, the user base of these apps is expected to expand if the underlined deal strikes.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Other Noteworthy Deals
Apart from the latest talks with Porsche, Google has won remarkable deals from well-recognized car makers.
General Motors and Ford (F - Free Report) have already incorporated Google software into their vehicles’ infotainment systems through Google Automotive Services. Moreover, Ford is set to roll out several cars with infotainment systems powered by Android this year.
Further, Volvo has integrated Google infotainment systems into its vehicles. Its cross-country models like XC60, S90, V90 and V90 feature built-in Android-powered infotainment systems.
Growth Prospects
Per the latest report from Polaris Market Research, the in-vehicle infotainment market is expected to register a CAGR of 10.9% between 2022 and 2030.
According to a report from Straits Research, the market is anticipated to hit $50.64 billion by 2031, registering a CAGR of 10.3% between 2023 and 2031.
Further, a Grand View Research report indicates that the global automotive infotainment system market is expected to witness a CAGR of 9.7% between 2023 and 2030.
Per a report from Mordor Intelligence, this market is likely to reach $36.6 billion by 2028 with a CAGR of 6.8% between 2023 and 2028.
Google’s winning deals with auto makers, along with its user-friendly Android operating system and robust vehicle infotainment software, position it well to capitalize on the abovementioned growth prospects.
Moreover, its expanding footprint in this promising market is expected to aid its parent company, Alphabet, in winning investors’ confidence in the near term.
Notably, GOOGL has lost 27.6% over a year against the industry’s loss of 26.9%.
Further, Google’s growing momentum among the auto makers is expected to boost its competitive edge against Apple (AAPL - Free Report) , which is also leaving no stone unturned to bolster its presence in this booming market.
Notably, Apple is gaining momentum on the back of its advanced software for vehicles, known as CarPlay, which has evolved from an infotainment system to an all-round in-car software solution.
Recently, Volvo incorporated CarPlay into its new Android powered vehicles. This remains a positive.
Zacks Rank & a Stock to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A better-ranked stock in the broader technology sector is Arista Networks (ANET - Free Report) , which sports a Zacks Rank #1 at present.
Arista Networks shares have gained 27.4% in the past year. The long-term earnings growth rate for ANET is currently projected at 14.17%.