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

  • Fiat-Renault would be ‘world leader’ in AVs and EVs
    May 28, 2019
    Fiat Chrysler Automobiles (FCA) has suggested a merger with Renault which it believes would make the combined company a ‘world leader’ in new mobility technologies. The proposal stems from discussions between both companies to identify products and geographies in which they could collaborate. FCA says the case for combination is strengthened by the need to take bold decisions to capture opportunities such as connectivity, electrification and autonomous vehicles (AVs). The combined business is expected
  • Parkopedia and Mercedes expand payments and reservations
    May 4, 2023
    Drivers can search for parking and pay using OEM's latest infotainment system
  • ‘Intelligent transportation key technology enabler of smart cities’
    March 13, 2014
    New research by ABI indicates that by 2025, penetration of ITS technologies in smart cities will range from 20 per cent (autonomous vehicles) to 98 per cent (traffic management). With more than two-thirds of the global population expected to live in urban contexts by 2050, the deployment of smart cities technologies and intelligent transportation services in particular, will become key policy areas for local governments. While numerous smart city projects are currently testing or deploying multimodal tr
  • Major automakers shift towards onboard chargers for electric vehicles
    May 6, 2015
    Most battery and plug-in hybrid electric vehicle (PHEV) manufacturers in Europe and the US have been adopting onboard chargers with a power output between 3 to 3.7 kilowatts (kW), according to new analysis from Frost & Sullivan. Now, EV manufacturers are moving towards onboard chargers with a power output greater than 6.6 kW to reduce charging time. While high-end PHEVs are contributing to this trend, lower-end models in this segment are still using 3.7 kW onboard chargers. Consequently, onboard chargers