Samsung Electronics has acquired Harman International Industries, a connected car solutions provider, for $8 billion USD, throwing Samsung right into the growing connected technologies market.
As smart technology integration with vehicles continues to grow, and with the connected technologies market predicted to reach $100 billion by 2025, Samsung is getting in on the ground floor.
“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,” Young Sohn, president and chief strategy officer of Samsung said in a statement.
“We see substantial long-term growth opportunities in the auto technology market as demand for Samsung’s specialized electronic components and solutions continues to grow.”
Samsung anticipates that acquiring Harman will positively affect them in four markets: automotive, audio, professional, and connected services.
To date, the latter firm has equipped more than 30 million vehicles with its connected car and audio systems, including embedded infotainment, telematics, connected safety, and security.
The two companies will look to combine Harman’s connected car technologies with Samsung’s connectivity technologies in 5G, UX/UI, display technology, and security solutions.
Audio-wise, Samsung will be using Harman audio system technology to benefit its mobile, display, virtual reality, and wearable products.
As part of Samsung’s business-to-business platform, the acquisition will translate into upgrades in audio and visual solutions for stadiums, concert facilities, and other performance centres like Los Angeles’ Staples Center. Samsung also now has access to Harman’s 8,000 software designers and engineers who are involved with the Internet of Things.
The news of this acquisition comes just a couple weeks following BlackBerry’s team up with Ford. Ford, who has just created its own mobile services division this past spring, will be using BlackBerry technology in its vehicles moving forward.
Samsung following suit may just very well be the beginning of this new technology race.