Samsung said that connected vehicle technology was “a strategic priority” for the company and is expected to grow to more than $100bn by 2025.

Harman claims to have more than 30 million vehicles equipped with its connected car and audio systems, including embedded infotainment, telematics, connected safety and security.

Sales in the last 12 months have been $7bn of which 65% are automotive-related.

Samsung will bring its semiconductor, mobile and display capabilities to this venture.

“This is a natural extension of the automotive strategy we have been pursuing for some time,” said Oh-Hyun Kwon, Vice chairman and CEO, Samsung Electronics.  “It immediately establishes a strong foundation for Samsung to grow our automotive platform.”

Samsung believe the in-car electronics is following a similar path to the mobile with the creation of more sophisticated smart technologies.

“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,” said Young Sohn, president and chief strategy officer of Samsung Electronics.

Dinesh Paliwal, Harman, chairman, president and CEO, said:

“Partnerships and scale are essential to winning over the long term in automotive as demand for robust connected car and autonomous driving solutions increases at a rapid pace.  This transaction will bring Harman and Samsung’s complementary strengths together to accelerate innovation in this space.”