Samsung has purchased Harman International for $8 billion in a bid to increase its presence in the emerging connected car market.
This recent acquisition opens new opportunities for Samsung’s broad IoT market, as the company will now have access to 8,000 software designers and engineers at Harman who can help create cloud-based consumer platforms across multiple Samsung devices.
Samsung can now also take advantage of Harman’s multiple subsidiary companies, including audio systems from JBL and devices from home automation company AMX. Currently, Samsung is using the acquisition to focus on connected car solutions, but builders and integrators can also expect new developments with Samsung’s automation platform SmartThings.
According to the press release, Harman International is a market leader in the connected car industry, with more than 30 million vehicles currently equipped with its connected car and audio systems.
Harman’s connected car IoT platforms include embedded infotainment systems, telematics, cybersecurity, over-the-air updates, safety solutions and security systems.
“The vehicle of tomorrow will be transformed by smart technology and connectivity in the same way that simple feature phones have become sophisticated smart devices over the past decade,” says Young Sohn, president and CSO of Samsung Electronics.
This deal is the largest in Samsung’s history, but it’s not the company’s first move into the connected car market. In February of this year, Samsung released the Connected Auto, a small box that plugs into a car’s dashboard port and creates a Wi-Fi hotspot for the vehicle.
Builders and integrators can expect to continually see these kinds of acquisitions and developments, as the connected car industry continues to expand. According to a Samsung analyst, the connected car industry is expected to grow to more than $100 billion by 2025.
This acquisition will enable Samsung to compete against other major manufacturers, such as LG and Tesla, that have already announced connected car/home devices.
For more great content, be sure to subscribe to our newsletters