Skip to main content

Huge global OEM connected car system shipments predicted

OEM connected car system shipments are expected to grow from 8.22 million in 2012 to 39.5 million in 2016. While the United States and Western Europe remain the leading regions, car OEMs such as GM, Toyota, Nissan, Hyundai, and Mercedes Benz increasingly look to China as the next major expansion area for launching connected car solutions in order to maintain or enhance their competitive position in this fledgling market.
May 2, 2012 Read time: 2 mins
OEM connected car system shipments are expected to grow from 8.22 million in 2012 to 39.5 million in 2016. While the United States and Western Europe remain the leading regions, car OEMs such as 1959 GM, 1686 Toyota, 838 Nissan, 1684 Hyundai, and 1685 Mercedes Benz increasingly look to China as the next major expansion area for launching connected car solutions in order to maintain or enhance their competitive position in this fledgling market.

Dominique Bonte, vice president and group director, telematics and M2M, at 5725 ABI Research comments, says the automotive industry has moved on from looking at telematics and connected car solutions as a nice premium add-on option to seeing bringing connectivity to the car as an essential tool to create more value to the end user, driving loyalty via advanced CRM-based customer experience tools and strengthening their overall branding and positioning in an increasingly competitive market. “In the US, connected car solutions have already become a must have, the dynamics of which were set in motion by 278 Ford, with almost every single OEM now having launched solutions, including 1958 Chrysler, coming to the party rather late with their enhanced Uconnect offer,” Bonte says.

While connected automotive infotainment continues to steal the limelight, traditional safety and security functionality remains important from an OEM perspective, due to either historical reasons (US – GM OnStar) or driven by mandates such as eCall in Europe, ERA-Glonass emergency calling in Russia, and the Contran stolen vehicle legislation in Brazil. Finally, usage based insurance (UBI), or insurance telematics, is making a strong comeback.

ABI Research’s new “Connected Car Market Data, Global” provides detailed forecasts of embedded, hybrid, and converged connectivity solutions, including subscribers, service revenue, and hardware shipments and revenues for the United States, Canada, Western Europe, Eastern Europe, Latin America, Asia-Pacific, and Africa and the Middle East.

Related Content

  • September 5, 2014
    Major growth predicted for OEM embedded telematics
    According to a new research report by Berg Insight, shipments of OEM embedded telematics systems worldwide are forecasted to grow from 8.4 million units in 2013 at a compound annual growth rate (CAGR) of 30.6 per cent to reach 54.5 million units in 2020. Moreover, Berg Insight forecasts that the number of cars sold worldwide equipped with head-units featuring handset-based telematics capabilities will grow from 7 million in 2013 to 68.5 million in 2020.
  • March 13, 2012
    89 million insurance telematics subscribers by 2017
    According to new research by ABI Research, insurance telematics users will grow at a CAGR of 90 per cent from 1.85 million in 2010 to 89 million in 2017.
  • June 14, 2012
    Europe to lead insurance telematics market
    The number of insurance telematics users in Europe will grow from 1.5 million in 2010 to 44 million in 2017, initially driven by the UK and Italy, according to ABI Research. Despite aggressive efforts from Progressive, North America will continue to lag behind the European UBI market, it says. Vice president and practice director Dominique Bonte comments, “While insurance telematics or usage based insurance (UBI) is far from a recent phenomenon, renewed interest in this market has been observed from both es
  • April 10, 2014
    Subscribers to OEM telematics in Western Europe to exceed 42 million by 2019
    ABI research’s latest research finds that the number of subscribers to Factory-installed Safety and Security telematics services is set for solid growth in Western Europe at a CAGR of 47 per cent, reaching 42.5 million in 2019. “Traditional safety and security telematics continues its march forward in Europe with both VW’s Car-Net and GM/Opel’s OnStar scheduled for deployment. A slew of new electrical vehicles from VW, Tesla, BMW, Daimler, and others will also boost telematics uptake and awareness,” says