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

  • Partnership to provide real-time location sharing while driving
    June 11, 2012
    Mercedes-Benz and Glympse, a mobile technology company that pioneered temporary real-time location sharing, are teaming up to provide real-time location sharing to their drivers by integrating Glympse into the new Mercedes-Benz Digital DriveStyle application, set to launch in the new A-Class in September. Drivers will be able to select a recipient, set a timer, and ‘send a Glympse’ to anyone they choose. The recipient will receive a text or email link, which will show the driver’s real-time location on an i
    Read More
  • Regulation time-lag will hit driverless technology hard says leading consultancy BDO
    August 8, 2018
    The legislation surrounding driverless cars is lagging so far behind the technology involved that the industry is unlikely to see a regulatory framework in place any time soon says leading international business, finance and taxation consultancy BDO. And IEEE, "the world’s largest technical professional organisation dedicated to advancing technology for the benefit of humanity" can only see problems ahead as the politicians fall further and further behind. BDO has been looking at a report from www.Spectr
    Read More
  • Drive C2X tests ITS systems in Finland’s demanding weather conditions
    December 17, 2013
    The VTT Technical Research Centre in Finland is involved in an extensive international Drive C2X project that tests and develops intelligent transport solutions, aimed at improving safety and efficiency in road traffic and reducing the carbon footprint of motoring. The project includes large-scale testing of inter-vehicle communication and communication between vehicles and the roadside infrastructure system. The tests are being carried out using cars from Mercedes-Benz, Opel and Volvo in slippery and deman
    Read More
  • Toyota distributor launches car share service in Hawaii
    July 17, 2018
    Residents of Hawaii can now use Hui’s car sharing app to access 70 Toyota and Lexus vehicles at 25 stations throughout Honolulu. The capital’s round-trip service was launched by Toyota distributor Servco Pacific. Hui utilises Toyota’s proprietary global mobility service platform and was developed by Toyota Connected North America. The app features driver identification, authentication and payment management tools. These vehicles feature Toyota’s Smart Key Box, which generates a digital key and allows
    Read More

Highlighted Content