Mobile phone company Nokia has launched a £59,000,000 fund that will invest in firms that specialise in smart and connected vehicles. This type of thing is seen as a key area of growth and Nokia has established a presence in this sector with it's connected vehicle mapping service.
This particular move allegedly comes just a few days after Nokia completed a sale to Microsoft of it's handset. The firm, from Finland has allegedly said that mapping services is one of three fundamental businesses that it intends to focus on.
The company has said that the fund, which will be managed by NGP, Nokia Growth Partners will support the sectors growth.
Firms have been trying to connect vehicles to each other, as well as to the internet. The idea of this is that smart and connected vehicles wouldn't only change the way cars are used by drivers, though also make them safer as they would be able to sense vehicles nearby.
A key part of this connectivity is the vehicle's ability to be able to access their location and the location of other objects around them.
As for a number of vehicles increasing and becoming inter connected, it could provide an opportunity for growth for companies that specialise in that particular sector.
Paul Asel, who is a partner at NGP explained that over the last few years there has definitely been a surge in innovation that brings advances of technology leading to cleaner, safer and increasing connectivity, affordable vehicles and intelligence. He finished by saying that vehicles are becoming a new platform for adopting technology, very similar to phones or tablets.
There have also been other companies that are keen to tap into this sector, including, Intel, Google and Apple.
Earlier on this year, Google announced that it will be teaming up with a number of car manufacturers that includes Hyundai, Honda and Audi, to integrate into the car dashboard, the Android operating system. This would essentially allow music and apps on Android smartphones and tablets to be able to work more efficiently on car systems.
There has also been a layer of traffic added to Google Maps which has been sourced from other users of Android, to make users aware of traffic jams, along with other issues on the roads.
Apple has also recently unleashed its CarPlay iPhone system which allows iPhones to be able to be plugged into their vehicles.
The company said recently that this would let drivers make calls, call up maps and request music with voice commands, or a touch on the dashboard screen of a vehicle.
Intel, the Chipmaker has also announced a $100,000,000 fund that is dedicated to the investment in technology that is aimed at development and accelerating of connected vehicles.