Samsung’s intention to focus on the connected car market became clear in an announcement made earlier this week, revealing that Samsung Electronics is acquiring HARMAN International Industries for approximately $8 billion. This agreement is key for Samsung in garnering visibility in the rapidly growing connected technology market.

The area of automotive electronics has been an area that Samsung is looking to expand into, and it is anticipated that it they will grow it to an estimated $100 billion by 2025. Today, HARMAN is the leader in the connected car solutions market, with more than 30 million vehicles equipped with HARMAN connected car and audio systems, which include embedded infotainment, telematics, connected safety and security.

harman

Samsung is looking for a larger role in the automotive sector. This deal has created significant growth opportunity for combined business, leveraging its own expertise in connected mobility with HARMAN’s experience designing and integrating in-vehicle technologies, as well as its relationships with some of the world’s largest automakers.

Samsung is a latecomer to the market for connected cars. In December 2015, the company made its ambitions for the self-driving car sector known by announcing that it will create a business division to focus on auto systems and components for autonomous driving. Apple and Google were already working with global automakers to supply their auto systems – CarPlay and Android Auto.

This investment will go beyond automotive, according to Samsung. Samsung plans to merge its own electronics division and expertise with that of HARMAN for audio — both on the consumer and professional side of business — and for connected devices, also known as the internet of things (IoT).

IoT is still not a household term, but Samsung said it plans to utilize HARMAN’s 8,000 developers to “deliver the next generation of cloud-based consumer and enterprise experiences, as well as end-to-end services for the automotive market through the convergence of design, data and devices.”

The combination of Samsung and HARMAN is expected to deliver significant growth opportunities and benefits to customers, leveraging complementary technologies, which will result in increased market penetration across important end markets.