Skip to main content

Advanced telematics and integration to revolutionise global connected car market

Advanced infotainment systems, over-the-air (OTA) updates, big data analytics, mobility services and in-car security are key technologies that will shape the global connected car market in 2015. Human machine interface (HMI) input and output solutions, as well as, heads up display (HUD) are set to take centre stage. However, car makers must create consumer-centric HMI solutions that will strike a balance between reducing driver distraction and meeting consumer need for connected services. New analysis f
May 22, 2015 Read time: 3 mins
Advanced infotainment systems, over-the-air (OTA) updates, big data analytics, mobility services and in-car security are key technologies that will shape the global connected car market in 2015. Human machine interface (HMI) input and output solutions, as well as, heads up display (HUD) are set to take centre stage. However, car makers must create consumer-centric HMI solutions that will strike a balance between reducing driver distraction and meeting consumer need for connected services.

New analysis from 2097 Frost & Sullivan, 2015 Outlook of the Global Connected Car Market, finds that with 90 per cent of original equipment manufacturers (OEMs) in North America having deployed connected telematics solutions, making it the leading market for associated innovations. With over 20 launches in the last two years, China is becoming the second interesting region from a deployment standpoint, while mandates around eCall, vehicle safety and driver distraction will act as catalysts for telematics use in Europe.

“While embedded connectivity is on the rise due to specific regulations related to telematics, shared data plans and smartphone-based connectivity will also gain prominence in the global mass market,” said Frost & Sullivan Automotive & Transportation research analyst Ramnath Eswaravadivoo. “OEMs wanting to compete with free smartphone-based navigation solutions are offering connected capabilities with dynamic re-routing, real-time traffic and point of interface services.”

Since 2G connections are likely to be discontinued in North America by 2017, the seamless running of networks with 3G and 4G coverage will prove to be a rigorous task. In addition, consumers are unwilling to pay extra for in-car long-term evolution (LTE) connections, and the penetration of LTE in mobile handsets remains slow. Nevertheless, 4G LTE networks are expected to cover over 60 percent of the world’s population by 2020, generating new revenue possibilities.

OTA updates are becoming critical to providing a smooth end-user experience, thus the security aspect gains extreme importance and poses yet another challenge. Security must evolve from offering feature-level safety to delivering in-vehicle and back-end protection, covering multiple areas such as OTA, connected services, user data protection and virtualization.

“Meanwhile, the large-scale acceptance of big data and predictive analytics will bring in new service and revenue opportunities,” added Frost & Sullivan Automotive & Transportation research manager Praveen Chandrasekar. “Harnessing vehicle data into the next generation of advanced diagnostics will enable OEMs to lengthen customer relationships to more than three years and tap into the longer-term maintenance and service business.”

For more information on companies in this article

Related Content

  • USDoT looks at the costs and potential benefits of connected vehicles
    October 26, 2017
    David Crawford looks at latest lessons learned from the trials of connected vehicles in the US. The progress of connected vehicle (CV) technologies takes centre stage among the hot topics highlighted in the September 2017 edition – the first since 2014 – of the ‘ITS Benefits, Costs and Lessons Learned’ survey from the US ITS Joint Program Office (JPO). The organisation is an arm of the US Department of Transportation (USDoT).
  • Consumers ‘fear technology failures with autonomous vehicles’
    April 21, 2017
    With the exception of Generation Y (1977-1994), all other generational groups are becoming more sceptical of self-driving technology, which poses a new challenge to car manufacturers and technology developers, according to the J.D. Power 2017 US Tech Choice Study. The study was carried out in January-February 2017 and is based on an online survey of more than 8,500 consumers who purchased/leased a new vehicle in the past five years. “In most cases, as technology concepts get closer to becoming reality, cons
  • Evidence growing for distance-based charging
    January 18, 2012
    The case is growing for an alternative to fuel taxation for funding highway infrastructure. A more sustainable system of mileage-based charging can be established in a way that is acceptable to the travelling public, writes Jack Opiola. Fuel tax - the lifeblood relied on for 80 years to maintain and improve roads and transit systems - is now in considerable jeopardy in the United States. Increased vehicle fuel efficiency and a poor economy already hamper generation of fuel tax revenue; now a recent federal
  • IRD announces continued growth in second quarter 2015
    July 16, 2015
    International Road Dynamics has announced solid growth in the three and six months ended 31 May 2015, with increased revenue on strong growth in key geographic markets and product segments For the three and six months ended 31 May, consolidated revenue increased 12.2 per cent and 8.1 per cent respectively, compared to the same period s in 2014, due primarily to continued growth in the Company's Canada, United States, Latin America and Mexico markets, as well as an increase in the value of the US dollar.