Oyster Bay, New York - 13 Jan 2015
Market intelligence firm ABI Research finds the penetration of embedded telematics in new vehicles will increase from 13.4% in 2014 to 52% in 2020.“While penetration levels of embedded connectivity in vehicles continue to grow steadily, it remains challenging for car OEMs to convince users to pay for built-in connected car services. While initiatives such as allowing adding connected car systems to shared data plans by GM in the United States are definitely going to boost uptake, full penetration is unlikely to be achieved solely through consumer-led drivers. Perceived value of safety services or in-car Wi-Fi hotspots simply are not big enough (yet), especially with free smartphone integration “tethering” standards such as CarPlay and Android Auto expected to become widespread in the next years,” says VP and Practice Director Dominique Bonte.
Built-in vehicle connectivity will only go main stream if and when it becomes a “must have,” integral part of vehicles for new automotive paradigms not expected to fully materialize before the 2020 time horizon:
In the meantime, growth will be fueled by non-consumer drivers such as eCall and stolen vehicle mandates in Europe, Russia, and Brazil (despite repeated delays) and the use of connectivity by car OEMs for internal analytics purposes such as diagnostics, prognostics, preventive maintenance via Over the Air (OTA) updates, and product design improvements.
These findings are part of ABI Research’s Automotive Safety and Autonomous Driving Market Research which covers OEM and aftermarket telematics solutions, ADAS and active safety and autonomous vehicles.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. 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.
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