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

  • Deadlines approach for Europe’s automatic crash alert system
    September 15, 2016
    The EU-co-funded I_ HeERO (Infrastructure_ Harmonised eCall European Pilot) project is working to ensure the readiness of national networks of call centres - known as public safety answering posts (PSAPs) - to deal with automated crash alerts arriving via the continent-wide 112 emergency phone number. Following on from its HeERO and HeERO2 pre-deployment predecessors, which enjoyed €16m (US$17.76m) in EU funding, the new initiative runs from 1 January 2015 to 31 December 2017. It has €30.9 million (US$34.
    Read More
  • ChargePoint America programme shipping milestone
    April 11, 2012
    Coulomb Technologies has announced the completion of more than 2,400 shipments of its public and commercial charging stations for electric vehicles through its ChargePoint America programme. The company claims it has seen exceptional demand in all 10 regions of the programme and is finalising the installation of charging stations within these regions.
    Read More
  • European car manufacturers face world’s toughest CO2 targets
    July 12, 2012
    Following the adoption yesterday of the European Commission's proposals to reduce CO2 emissions from cars and vans, the European Automobile Manufacturers' Association (ACEA) says it will now work with its members to conduct a full analysis of how the proposed targets should be reached as well as their feasibility, and what this means in practice for the industry as a whole.
    Read More
  • Telematics in construction equipment sector to exceed 30% globally by 2019
    January 30, 2014
    According to the latest research from ABI, although the penetration of telematics in the construction equipment industry on the whole remains low, operators are gradually beginning to realise the benefits as more and more OEMs include telematics solutions as standard in their vehicles. Most operators cite the tracking capability of their telematics systems as providing the most immediate initial benefit to their businesses, as it helps to reduce vehicle theft and misuse, thus reducing insurance premiums.
    Read More

Highlighted Content