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

  • Fleet management systems likely to become standard fitting in the Americas
    July 6, 2012
    According to a new research report, Fleet management in the Americas, from Berg Insight, the number of fleet management systems deployed in commercial vehicle fleets in North America was 2.8 million in Q4-2011. Growing at a compound annual growth rate (CAGR) of 15.9 per cent, this number is expected to reach 5.9 million by 2016. In Latin America, the number of installed fleet management systems is expected to increase from 1.3 million in Q4-2011, growing at a CAGR of 16.6 per cent to reach 2.8 million in 20
    Read More
  • Wi-Fi win-win for mass transit
    October 31, 2014
    David Crawford explores passenger and operator benefits of on-board Wi-Fi Urban commuters’ growing demand for continuous – and reliable - internet connectivity is spurring network operators into the rapid installation of high-grade Wi-Fi access on their surface and underground networks, as well as in their stations. Such moves are often a key part of strategies to maintain and increase ridership levels.
    Read More
  • Karamba Security appoints executives and expands advisory board
    March 29, 2018
    Israel-based cybersecurity provider Karamba Security has appointed two executives to its management team and two automotive industry experts to its advisory board to help meet the market demand for its autonomous and connected car solutions. Guy Sagy, a decorated officer and cyber security architect with Unit 8200, has been appointed security chief technology officer while one of the company’s co-founders, Assaf Harel, is now chief scientist. In addition, Amir Einav has been named vice president of market
    Read More
  • Major growth for fleet management systems in the Americas
    May 17, 2012
    According to a new research report from the analyst firm Berg Insight, the number of fleet management systems deployed in commercial vehicle fleets in North America was 2.1 million in Q4-2010. Growing at a compound annual growth rate (CAGR) of 12.6 per cent, this number is expected to reach 3.8 million by 2015. In Latin America, the number of installed fleet management systems is expected to increase from 0.9 million in Q4-2010, growing at a CAGR of 20.6 per cent to reach 2.3 million in 2015.
    Read More

Highlighted Content