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.
Location Based Systems

For more information on companies in this article

Related Content

  • Four predictions for the automotive and transportation industry
    May 30, 2012
    Frost & Sullivan has released the results from its customer survey with several hundred companies conducted in December 2011, executed to find out the top predictions for 2012 for the global automotive and transportation market. Market growth in all regions except Europe, accelerated introduction of plug in hybrid and battery electric vehicles due to increasing fuel prices, mobility and integrated transportation as well as the integration of the smart phone with dedicated application stores and innovative H
    Read More
  • The move towards shared telematics platforms
    February 27, 2013
    Is the end for dedicated, in-vehicle telematics systems now in sight? Some seemed to think so at the recent Telematics Munich 2012 conference… Geoff Hadwick reports. Forget smartphone apps – leave that sort of thing to Apple and Google,” Roger Lanctot, associate director of the global automotive practice at consultancy Strategy Analytics told more than 700 delegates in Munich last month at the Telematics Munich 2012 conference. They are a waste of time and money, he said. Forget putting too much data on das
    Read More
  • Daimler and Google deepen strategic partnership
    March 23, 2012
    Daimler and Google have announced a deepening of their strategic partnership to provide Daimler with access to the suite of application programming interfaces (APIs) known as Google Maps API for Business for the use of cloud-based, map-related applications in Daimler vehicles and early access to other new APIs as they are developed. The collaboration will enable Daimler to use Google Maps for their in-car map displays, and significantly improve their ability to quickly and seamlessly integrate useful Google
    Read More
  • Autonomous car data released
    January 14, 2016
    California’s Autonomous Vehicle Testing Regulations require every manufacturer authorised to test autonomous vehicles (AV) on public roads to submit an annual report summarising the disengagements, or deactivation of the autonomous mode, of the technology during testing. Eleven manufacturers are currently testing autonomous vehicles on the state’s roads, seven of which (VW/Audi, Mercedes Benz, Google, Delphi Automotive, Tesla Motors, Bosch, and Nissan) were required to submit their first disengagement re
    Read More

Highlighted Content