How Connected Car Applications Dictate Form Factors and Business Models in the Aftermarket

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By Maite Bezerra | 1Q 2021 | IN-6033


Automotive Connected Aftermarket


The automotive connected aftermarket can be divided into three major applications with unique hardware requirements and business models. For instance, consumer aftermarket infotainment solutions are often offered in the form of On-Board Diagnostics (OBD) devices that feature 4G LTE cellular connections and Wi-Fi hotspots and rely heavily on Mobile Network Operators’ (MNOs’) brick-and-mortar retailers. On the other hand, Stolen Vehicle Tracking (SVT) applications usually use black boxes with Low-Power Wide-Area Networks (LPWAN) commercialized via direct consumer distribution channels, dealers, or even insurers. The selection of adequate form factors and development of regional strategies that address different markets’ dynamics is paramount for success in the aftermarket.

Hardware Specifications and Business Models


Usage-Based Insurance (UBI): UBI can be deployed through black boxes, cellular and Bluetooth plug-and-play OBD-II, windscreen beacons, 12V connectors, or purely via smartphones. Each device has diff…

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