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.

For more information on companies in this article

Related Content

  • Hyundai Heavy & Magna E-Car Systems to develop lithium-ion battery
    April 19, 2012
    Hyundai Heavy Industries (HHI), and Magna E-Car Systems (Magna E-Car), a supplier of components and systems for hybrid and electric vehicles, have announced a joint venture named Mahy E-Cell as a platform to co-develop and grow a successful battery cell and battery pack business. Under the agreement, HHI and Magna E-Car will jointly conduct engineering, design, development and testing activities with the goal of preliminary validation of battery cell and battery pack technologies for electric and hybrid ele
  • Automated vehicles coming to Ontario roads
    November 29, 2016
    Ontario, Canada, is supporting innovation in the transportation sector by launching the first automated vehicle (AV) pilot program in Canada, led by the University of Waterloo, the Erwin Hymer Group and BlackBerry QNX. The pilot brings together a range of expertise from the research, manufacturing and technology sectors to advance innovation and capability in Ontario's AV sector. The WATCar Project at the University of Waterloo's Centre for Automotive Research will monitor a Lincoln MKZ for performan
  • Kapsch and Autofind partner on vehicle tracking solutions
    April 28, 2014
    Kapsch TrafficCom and UHF Gen 2 RFID solutions supplier Autofind Industrial have formed a strategic partnership with the aim of jointly providing end-to-end solutions for SINIAV (Sistema de Identificação Automática de Veículos), Brazil’s national electronic vehicle registration program.
  • Rio de Janeiro launches electric car partnership
    June 20, 2013
    A memorandum of understanding (MoU) has been signed by the Rio de Janeiro State Government and leaders from Brazil's public-private sectors to accelerate zero-emission transportation in Rio de Janeiro. The partners for this historic deal are Renault-Nissan Alliance, Petrobras Distribuidora, Light, Ampla and Rio Negocios.