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

  • Growing world market for night vision and driver monitoring systems
    August 15, 2014
    MarketsandMarkets’ latest report, Night Vision System (NVS) and Driver Monitoring System (DMS) Market for Passenger Cars - by Geography - Trends and Forecasts 2014-2019 classifies and defines the automotive night vision and driver monitoring systems market in terms of volume and value. The report highlights potential growth opportunities in the coming years as well as covers review of the - market drivers, restraints, growth indicators, challenges, legislation trends, market dynamics, competitive landscape,
  • Senior Inrix appointments announced
    July 12, 2012
    Inrix, the international provider of traffic information and driver services, has announced the hiring of four industry leaders from the automotive and mobile industries to drive the company’s European business development and global marketing efforts. In addition, the company is naming former Blue Nile CEO Diane Irvine, to its board of directors.
  • Smart mobility on the rise, says ABI Research
    May 10, 2016
    As extreme pollution and congestion in urban areas coupled with limited transportation options continues to challenge major cities across the globe, market intelligence firm ABI Research, predicts an imminent rise in smart electric mobility. Data analysis forecasts global electric vehicle revenue will hit US$58 billion in 2021, more than five times its market value in 2015. "The role of vehicle electrification in urban areas is part of a broader smart mobility model that includes shared vehicles, chargi
  • Blind spot detection and adaptive cruise control systems markets forecast to 2019
    August 15, 2014
    The MarketsandMarkets report, Blind Spot Detection (BSD) System and Adaptive Cruise Control (ACC) System Market for Passenger Cars; by Geography - Trends and Forecasts 2014 - 2019, indicates that the BSD market will be worth US$2.8 billion and the ADCC market worth US$6.1 million by 2019. The report classifies and defines the automotive BSD and ACC systems market in terms of volume and value. It report highlights potential growth opportunities in the coming years as well as covers review of the market dr