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

  • NXP Delivers V2X Chipset for Mass-Production Secure Connected Cars
    June 3, 2015
    NXP Semiconductors RoadLINK V2X chipsets – for Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication – will be put into highvolume manufacturing for Delphi Automotive. Having secured a partnership with a leading global automaker, Delphi’s platform is expected to be first to market and on the roads in as little as two years.
  • One eye on the future
    December 12, 2013
    Mobileye’s Itay Gat discusses the evolution of monocular solutions for assisted and autonomous driving with Jason Barnes. Founded in 1999, Israeli company Mobileye manufactures and supplies advanced driver assistance systems (ADAS) based on its EyeQ family of systems-on-chips for image processing for solutions such as lane sensing, traffic sign recognition, vehicle and pedestrian detection. Its products are used by both the OEM and aftermarket sectors. The company’s visual interpretation algorithms drive
  • Ethernet to tap new synergies for connected cars
    July 25, 2013
    Ethernet could be catalyst for bringing the automotive industry a step closer to connected vehicles. The latest report from Frost and Sullivan indicates that the need to integrate multiple consumer electronic devices into the car offering connected services and maintaining brand identity has led to a situation where original equipment manufacturers (OEMs) are shifting toward higher connectivity options which could power prioritised and personalised services, catering to varied consumer needs. With the parad
  • ITS market size ‘to reach US$38.68 billion by 2020’
    December 21, 2015
    The global ITS market is expected to reach US$38.68 billion by 2020, according to a new study by Grand View Research. Increasing demand for alleviating traffic congestion and growing need for enhancing existing transportation networks is expected to drive demand over the forecast period. Growing urban population and increased fund allotment by various governments across the globe is driving need for advanced transportation network. This is estimated to be fulfilled by proper use of wireless communication