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

  • Ford develops connectivity upgrade for 2010-2016 vehicles
    January 30, 2017
    Developed in collaboration with Delphi Automotive and Verizon Telematics, automaker Ford has launched SmartLink, a technology that enables connectivity features normally only available on new modem-equipped vehicles. Available for 2010-2016 model Ford and Lincoln cars, features include remote start, lock and unlock, wi-fi access capable of hosting up to eight device, and vehicle health, security and location alerts. Components of Ford SmartLink include a 4G LTE-enabled OBD II plug-in device, as well a
  • Hello LA! It's showtime!
    September 19, 2022
    Welcome to this year’s ITS World Congress, organised by RX Global. Jaime McAuley, the company’s event director, provides some highlights of what will be an amazing and unforgettable show
  • Johnson Controls-Saft to supply batteries for China EV platforms
    February 3, 2012
    Johnson Controls-Saft, a specialist in the development and manufacture of advanced lithium-ion batteries for hybrid and electric vehicles, will supply the complete battery system for two electric vehicle platforms, which will be launched by the Beijing Electric Vehicle Company (BEVC), a subsidiary of Beijing Automotive Industry Company (BAIC).
  • Favourable legislation essential for developing successful test sites, finds Frost & Sullivan
    May 26, 2016
    New analysis from Frost & Sullivan, Global Test Sites and Incentive Programs for Automated Cars, finds unfavourable legislation in many parts of the world can delay the testing, validation and subsequent introduction of automated vehicle technologies by a few years. Despite the availability of advanced automated functional testing in several parts of the world, original equipment manufacturers (OEMs) and automotive technology providers favour North American test beds to the ones in Europe and Asia, says