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

  • Electrified transmissions to become the preferred choice for premium OEMs
    June 21, 2012
    New analysis from Frost & Sullivan predicts that electrified transmissions will experience increased penetration in both European and North American regions due to the increased focus on hybrid vehicles and their positive impact on emissions and fuel economy. However, end-user preference for automatic transmissions (AT) in North America and for manual transmissions (MT) in Europe will dictate the market penetration of the type of transmission technology with integrated electric motors.
  • Data goldmines offer rich pickings
    May 31, 2013
    Astronomical is not too grand a term to describe the current rate of growth in transportation-related data. Massive amounts of traffic related information, such as speed, volume, incidents and weather are being generated every second by road operators and users alike. Big data’ derives its name from the sheer amount and complexity of available raw data. Its potential value is starting to emerge among the intelligent transportation systems community. A gold rush is taking place to capture this value, with da
  • Vehicle analytics market ‘to grow by 26 per cent by 2022’
    September 19, 2017
    A new market research report by MarketsandMarkets estimates that the market for vehicle analytics will grow from US$1124.1 million in 2017 to US$3637.4 million by 2022, at a Compound Annual Growth Rate (CAGR) of 26.5 per cent. According to the report, the major driving factor for this market remains advances in technologies, such as machine learning, artificial intelligence (AI) and predictive maintenance to enhance fleet management, as well as increasing use of real-time data collected from sensors and
  • Global toll revenues $8.5bn while technology ‘battles’ continue
    April 9, 2014
    ABI Research’s Dominique Bonte talks to Jason Barnes about trends in tolling and how a wider appreciation of technology options is sorely needed. Global Electronic Toll Collection (ETC) solution revenues will grow to $8.5bn by 2018, with ETC becoming a main source of funding for both Intelligent Transport Systems (ITS) and Vehicle-to-X (V2X) cooperative infrastructures, according to a new report from ABI Research (Chart 1). But, says the report’s author, ABI Research vice president and practice director Dom