Skip to main content

Rush to launch smartphone telematics applications

The number of global users of telematics smartphone applications will increase from 3.2 million in 2011 to 129 million in 2016, with North America as the dominant region, according to the latest ABI Research forecasts. Practice director Dominique Bonte comments: “The integration of smartphones and smartphone applications into vehicles represents nothing less than a renaissance of the interest in both consumer and commercial telematics markets. Car OEMs, automotive Tier Ones, telematics service providers and
May 16, 2012 Read time: 2 mins
RSSThe number of global users of telematics smartphone applications will increase from 3.2 million in 2011 to 129 million in 2016, with North America as the dominant region, according to the latest 5725 ABI Research forecasts.

Practice director Dominique Bonte comments: “The integration of smartphones and smartphone applications into vehicles represents nothing less than a renaissance of the interest in both consumer and commercial telematics markets. Car OEMs, automotive Tier Ones, telematics service providers and independent system and software developers are rushing to launch smartphone applications, with new solutions being announced almost on a daily basis. The dynamics of the smartphone and application store revolution are now spilling over into the automotive industry.”

Telematics smartphone applications appear across many categories including infotainment (music streaming), remote control (door unlock), remote diagnostics (battery status), eCall & bCall, virtual dashboards, driver behaviour monitoring, advanced navigation, and even social media applications (Facebook and Twitter updates). They take the form of both standalone apps connected to the vehicle OBD-II bus, and apps operating in conjunction with embedded telematics and infotainment systems.

However, issues remain. The most important one is safety: the in-car use of smartphone apps increases drivers’ distraction. While 493 Apple’s iPod Out and 183 Nokia’s Terminal Mode allow users to control and display phone apps using in-car controls and displays, the end-to-end control over HMI design is relinquished by car OEMs to third party developers. Some OEMs are considering launching their own application stores and/or certification processes.

Finally, telematics smartphone applications constitute something of a double-edged sword for car OEMs, allowing them to bring cheap connectivity and innovative features to the market quickly but at the same time forcing them to hand over lucrative business opportunities to the mobile industry, as well as compromising on quality and safety.

ABI Research’s new ‘Telematics Smartphone Applications’ study covers the different types of telematics smartphone application (standalone, hybrid, embedded), drivers and barriers, main players and solutions, as well as user interface and safety issues. It includes detailed subscriber and revenue forecasts.

Related Content

  • September 4, 2013
    Nokia sells device business to Microsoft, but retains Here
    Nokia Corporation has signed an agreement to sell substantially all of its devices and services business and licence its patents to Microsoft for US$7.1 billion in cash, payable at closing. Following the transaction, Nokia plans to focus on its three established businesses: NSN network infrastructure and services; Here mapping and location services; and Advanced Technologies technology development and licensing.
  • July 2, 2014
    App integration ‘commonplace within five years’
    A new report by Juniper Research on the telematics sector has found that the number of in-vehicle apps in use is expected to reach 269 million by 2018, representing a more than fivefold increase on 2013’s figure. According to the report, Connected Cars: Consumer & Commercial Telematics and Infotainment 2014-2018, growth will be fuelled by solutions such as Apple’s CarPlay, which will promote in-vehicle apps to the mainstream. It also argues that app integration will be facilitated as standardised approac
  • August 23, 2012
    Global ADAS revenues to reach $460 Billion by 2020
    ABI Research is predicting that global advanced driver assistance systems (ADAS) revenues will surge from $22.7 billion in 2012 to $460.8 billion in 2017, with Asia-Pacific remaining the leading ADAS market throughout the forecast period. “Both commercial and regulatory drivers are expected to boost the ADAS market in the coming years,” says VP and practice director Dominique Bonte. “On the one hand, OEMs such as Ford have started rolling out ADAS features on medium to low-end cars in order to bolster their
  • March 22, 2012
    Automotive telematics and smart energy will lead M2M market growth
    According to ABI Research’s new study, Cellular M2M Connectivity Services, the M2M market has become a fully mainstream segment of the cellular industry. By the end of 2011, most major mobile operators in North America, Europe, and the Asia-Pacific region had established M2M business units to focus their efforts in this fast growing market. ABI Research predicts that the market for cumulative cellular M2M connections will rise from about 110 million connections in 2011 to approximately 365 million connectio