By 2016 most cars will have smartphone integration, according to a report from Juniper Research, a UK wireless technology research firm.
Aftermarket systems, such as SatNav and handsfree systems, will help push the sector to US$1.4 billion ($1.8 billion) in four years and give 92 million vehicles internet connectivity, according to Forbes magazine.
This technology will allow satellite-based navigation and streaming music live, for example, and open up a whole new market to telematics services now only offered through automaker-specific subscription plans like GM's OnStar and BMW Assist.
These sophisticated satellite-linked systems can automatically dispatch emergency services to the scene of an accident, help law enforcement agencies locate stolen vehicles, and even disable them in some cases.
Parts suppliers and consumer electronics companies are working together to create a standardised protocol called MirrorLink, being overseen by America's Car Connectivity Consortium, which was established in February 2011 expressly for this purpose.