While 4G networks would be preferred by automakers to power the connected car, it is 3G networks that will carry the data driving the majority of its global telematics and infotainment services revenues. In fact, it will be after 2020 that 4G becomes the leading connection technology for OEM telematics revenues. It is typical for verticals with long product lifecycles, such as automotive, to show delayed uptake of next generation technologies, such as 4G, due to slower penetration into the installed vehicle base. Similar cellular technology adoption data for over 30 of the largest IoT application segments can be found in ABI Research’s recently launched IoT Market Tracker.
VP and IoT Practice Director, Dan Shey comments, “There are exceptions. For instance, in the United States, Japan and Korea, 4G will lead revenue generation. But interestingly it will take until 2018 and into 2019 for 4G to carry the majority of the data traffic driving OEM telematics revenues. In India, 2G will stay the dominant telematics network carrier for the next 5 years; China’s revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020.”
The types of supply chain services generating connected car revenues are equally diverse and highly country dependent. Today, professional services including hardware and software integration, consultancy, and project management generate the majority of global IoT supplier revenues. But by 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead. Data and analytics revenues will also become a major revenue generator later in the forecast period exceeding connection, security and network services revenues.
VP and Automotive Practice Director, Dominique Bonte comments, “By 2020, the connected car supply chain will start seeing some dramatic shifts, which are reflected in the changing revenue ratios between the different service categories in ABI Research’s IoT Market Tracker. Open source hardware reference platforms, third party mobile ecosystem integration, and the shift towards cloud-based approaches will start eating into traditional Tier 1 professional service revenues, forcing vendors such as Harman, Bosch and Continental to move into new areas and competences including data analytics, OTA and security monitoring services.
The IoT Market Tracker provides connections and services revenues for 2G, 3G, 4G, fixed line and satellite connections across 32 application segments, 30 industry verticals and 4 size of business segments covering 18 separate countries and regions. It is part of ABI Research’s IoE coverage, which includes Research Reports, Market Data, Insights, and Competitive Assessments.
ABI Research provides technology market research and technology intelligence for industry innovators. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research’s services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
Asia: +65 6950.5670