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

  • Electric car value chain overturned
    November 7, 2014
    The market for hybrid and pure electric cars homologated as such is set to be US$188 billion in 2025 according to IDTechEx analysis. However, according to Dr Peter Harrop, chairman of IDTechEx, the world has changed for cars overall and now big is not always beautiful for mainstream car manufacture. EVs will reflect this. Although Sergio Marchionne, boss of Fiat Chrysler, famously said six million units a year is needed for a car maker to be profitable, his head of research Pietro Perlo left to successf
  • European Parliament test drives fuel cell vehicles
    October 29, 2012
    The 5th Fuel Cell Electric Vehicle Drive ‘n’ Ride event was recently held in Strasbourg, France, under the patronage of Brian Simpson, Member of the European Parliament (MEP) and chair of the European Parliament’s transport and tourism committee, to demonstrate the readiness of fuel cells and hydrogen as a viable route to zero emission transport in Europe.
  • Australia, New Zealand fleet management systems to reach 1.1 million units by 2020
    August 17, 2016
    The number of active fleet management systems deployed in commercial vehicle fleets in Australia and New Zealand was 0.5 million in quarter four of 2015 according to a new research report from the M2M/IoT analyst firm Berg Insight. Growing at a compound annual growth rate (CAGR) of 16.0 percent, this number is expected to reach 1.1 million by 2020. The fleet management market in Australia and New Zealand is today influenced positively by a number of different market drivers including regulatory developm
  • RFID market will be worth over $70 billion over next five years
    April 17, 2012
    The market for RFID transponders, readers, software, and services will generate US$70.5 billion from 2012 to the end of 2017. The market was boosted by a growth of $900 million in 2011 and the market is expected to grow 20 per cent YOY per annum. Government, retail, and transportation and logistics have been identified as the most valuable sectors, accounting for 60 per cent of accumulated revenue over the next five years. “To date, the automotive sector has been a strong proponent of RFID, largely for immo