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

  • ABI Research: DSRC above Cellular cheaper than implementing C-V2X
    February 7, 2018
    Implementing a Dedicated Short-Range Communication (DSRC) above cellular communications is expected to be $13.50 (£9.70) to $15 (£10) lower per Telematics Control Unit than implementing a Cellular Vehicle-to-Everything (C-V2X) solution, according to US-based ABI Research’s analysis of vehicle to everything (V2X). It follows industry discussions which have compared DSRC and C-V2X as technology alternatives for enabling V2X in vehicles to help prevent accidents.
  • V2X: The design challenges
    May 2, 2018
    The connected future throws up a number of enticing possibilities for us all. But, says Houman Zarrinkoub of MathWorks, issues around visualisation, prototyping and model evolution need to be examined carefully. We are all aware of the huge amount of investment going into driverless car technologies. With the likes of Volvo, Tesla and BMW getting in on the act, soon they will be a common sight on our roads. However, for this to occur, the vehicles must be able to connect with each other and ensure driver
  • Intelematics announced as newest member of SmartDeviceLink Consortium
    August 29, 2017
    Australian provider of connected mobility services, Intelematics, has been announced as the latest member of the SmartDeviceLink (SDL) Consortium, joining organisations such as Toyota and Ford in their development of SDL Apps and SDL technologies. Established earlier this year, the Consortium is a non-profit organisation managing the open source platform for the development and adaptation of smartphone apps within vehicle’s dashboard systems. The platform is intended to simplify the app development process
  • Parkopedia offers services for Mercedes-Benz cars in China
    February 20, 2019
    Parkopedia has integrated its service into Mercedes-Benz passenger cars in China to provide drivers with information on parking garages. The company says the service offers information on garage prices, opening hours, precise location and dynamic space availability. Parkopedia’s service is available with new A-class Mercedes Benz cars equipped with the Command Online Navigation system. The Mercedes Command Online Navigation System controls a range of vehicle functions such as the sat nav and ste