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.”

Related Content

  • September 11, 2013
    Heavy cost of car safety systems gives buyers pause
    New research by Frost and Sullivan finds that constant technological innovations in automotive safety warrant frequent updates to legislation. With the number of fatalities and injuries on the rise, legislative authorities in Europe are taking a keen interest in the safety of pedestrians, passengers and drivers. This enhanced focus on safety has far-reaching ramifications for the automotive industry.
  • July 2, 2012
    Trailer telematics a catalyst for fleet optimisation, Finds Frost & Sullivan
    The trailer telematics market is fast developing into a major growth engine for the commercial vehicles telematics market in Europe. Immense opportunities await telematics vendors as a majority of the trailer population in Europe (as well as North America) remains underpenetrated. Within the trailer telematics market, trailer location and tracking is the most developed application. However, security concerns and the need for effective mobile asset monitoring and management are creating several new applicati
  • January 19, 2016
    Global ITS market ‘to grow at a CAGR of over 10 per cent by 2020’
    According to the recently published report by market research and consulting company TechSci Research, Global Intelligent Transportation Systems Market By System, By Application & Competition Forecast and Opportunities, 2010 - 2020, the global ITS market is projected to register a CAGR of more than 10 per cent during 2015-2020. Global intelligent transportation systems (ITS) market witnessed significant growth over the last few years due to implementation of various traffic management and mass transit sy
  • March 28, 2014
    OBD aftermarket telematics subscribers market forecast
    According to new research from ABI, the number of subscribers to OnBoard Diagnostics (OBD) aftermarket telematics solutions is expected to increase from 9.5 million in 2014 to 117.8 million in 2019. “OBD-dongle telematics devices are gaining momentum in North America and Europe in segments such as UBI, fleet management, and consumer telematics. Their plug-and-play characteristics, low cost and flexibility for a range of applications including diagnostics and maintenance, location tracking and trip loggin