Skip to main content

OBD aftermarket telematics subscribers market forecast

According to new research from ABI, the number of subscribers to OnBoard Diagnostics (OBD) aftermarket telematics solutions is expected to increase from 9.5 million in 2014 to 117.8 million in 2019. “OBD-dongle telematics devices are gaining momentum in North America and Europe in segments such as UBI, fleet management, and consumer telematics. Their plug-and-play characteristics, low cost and flexibility for a range of applications including diagnostics and maintenance, location tracking and trip loggin
March 28, 2014 Read time: 2 mins
According to new research from ABI, the number of subscribers to OnBoard Diagnostics (OBD) aftermarket telematics solutions is expected to increase from 9.5 million in 2014 to 117.8 million in 2019.

“OBD-dongle telematics devices are gaining momentum in North America and Europe in segments such as UBI, fleet management, and consumer telematics. Their plug-and-play characteristics, low cost and flexibility for a range of applications including diagnostics and maintenance, location tracking and trip logging, driving behaviour monitoring, and even in-car Wi-Fi make them a great fit for aftermarket telematics players in a still largely underpenetrated market. Much of the marketing push is led by carriers such as 813 Vodafone, 1984 Verizon, 1018 Sprint, and 1970 AT&T leveraging their online and retail channel power combined with their customer-facing support expertise while partnering with OBD device vendors and service providers such as Audiovox, 7207 Delphi, and CalAmp,” says VP and practice director Dominique Bonte.

North America and Europe are the leading regions because OBD vehicle ports are mandatory combined with the advanced state of their telematics markets. However, beyond the 2019 forecast horizon, the window of opportunity for OBD-dongles will gradually close as open factory-installed OEM telematics becomes more widespread.

OBD solutions will also face competition from aftermarket telematics solutions based on smartphones connecting directly to the vehicle OBD port via Bluetooth or Wi-Fi adapters. Even standalone smartphone applications are starting to be explored for applications such as UBI and driver behaviour monitoring of truck drivers leveraging the built-in GPS, accelerometer, and connectivity.

However, the main weakness of OBD solutions is their closed nature, both from a vehicle port perspective with car OEMs not exposing all vehicle data in a standard format and from a device perspective lacking open APIs preventing third party developers from creating a rich set of applications to extend functionality.

For more information on companies in this article

Related Content

  • Wi-SUN: here’s why mesh networking works
    May 10, 2019
    There are several networking options available for smart city planners. Phil Beecher of Wi-SUN Alliance makes the case for wireless mesh networks when it comes to rolling out IoT solutions The Internet of Things (IoT) is growing fast. Connecting thousands of sensors and control systems in bi-directional networks is paving the way for a new generation of smart city and transport infrastructures. For many of these applications, wireless connectivity is essential where cable installation is not practical.
  • u-blox acquisition adds wi-fi and Bluetooth connectivity
    May 20, 2014
    Swiss-based u-blox has acquired Swedish company connectBlue AB, a provider of industrial-grade short range radio modules which support Bluetooth and IEEE 802.11/wi-fi industry standards that enable the last hundreds of metres of connectivity between equipment and the internet. According to u-blox, the acquisition greatly enhances its portfolio of positioning and cellular wireless communications solutions with short range communication products and broadens the u-blox module offering bringing millions of
  • Vehicle intelligence systems market ‘worth US$20.11 billion’
    June 15, 2016
    The latest research by MarketsandMarkets, Vehicle Intelligence Systems Market by Road Scene Understanding, Advanced Driver Assistance & Monitoring, predicts that the global market for vehicle intelligence systems will grow at a CAGR of 12.24%, from US$11.29 Billion in 2016 to US$20.11 Billion by 2021. Given the increasingly stringent safety norms, automotive OEMs are focusing on enhancing the safety of vehicles. To ensure the safety of the driver, passengers, and pedestrians, the vehicle needs to be inte
  • China passenger car telematics industry report 2015-2018
    December 21, 2015
    The latest research by Research and Markets indicates that as Chinese passenger vehicle manufacturers accelerate to popularise telematics systems in 2015, smartphone integration and 4G LTE technologies have found wider application, and IVI (in-vehicle infotainment) and networking functions have got enriched and optimised to get better user experience.