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Telematics Service Subscribers Using Embedded Systems Will Grow at a CAGR of 39.9%
DUBLIN, IRELAND --(Marketwired - March 24, 2016) - Research and Markets has announced the addition of the "The Global Automotive OEM Telematics Market -- 2nd Edition" report to their offering.
According to a new research report, the number of telematics service subscribers using embedded systems will grow at a compound annual growth rate (CAGR) of 39.9 percent from 20.5 million subscribers at the end of 2014 to 153.4 million subscribers at the end of 2020. Moreover, the author forecasts that shipments of embedded car OEM telematics systems worldwide will grow from almost 11.1 million units in 2014 at a CAGR of 31.1 percent to reach 56.0 million units in 2020.
The drivers behind the adoption of telematics systems among car manufacturers are both commercial and regulatory. Safety regulations that aim to make automatic emergency calls mandatory in all new cars are for instance being adopted in the EU and Russia with the eCall and ERA-GLONASS initiatives respectively. In other markets such as North America and Japan, commercial services have driven adoption of telematics services that have evolved from being a differentiator to a mainstream feature offered by most car brands.
Examples of services offered by carmakers include emergency call and roadside assistance, stolen vehicle tracking, vehicle diagnostics, navigation and infotainment, as well as remote control of vehicle functions. "Carmakers are still experimenting with the business models for connected car services as renewal rates for telematics subscriptions after the initial free period remain relatively low", said André Malm, Senior Analyst, Berg Insight. He adds that most car OEMs let users of new cars equipped with telematics systems try services for free for a given period of time.
In the US, the free period now ranges from 6 months in the case of GM, Nissan and Volkswagen, to 12 months for FCA, Subaru, Hyundai and Toyota. Mercedes-Benz has recently extended the free service subscription period to 5 year and GM now also offers the OnStar Basic plan free of charge for 5 years.
In Europe, BMW, Mercedes-Benz and PSA Peugeot Citroën offer basic telematics including eCall and remote diagnostics free of charge for lifetime and Audi for 10 years. Other brands including Opel/Vauxhall and Volvo offer free services for 6-months to 2 years. "Market competition and local regulations will likely lead to that a growing number of brands will offer free basic services such as safety and diagnostics for the lifetime of the vehicle", said Mr Malm. As part of new business model trials, some carmakers are also launching their own app stores.
Highlights from the report:
- Insights from numerous executive interviews with market leading companies.
- New data on car populations and new car registrations worldwide.
- Comprehensive overview of the car OEM telematics value chain and key applications.
- In-depth analysis of market trends and key developments.
- Detailed profiles of 17 major car OEMs and their telematics propositions.
- Market forecasts by region lasting until 2020.
This report answers the following questions:
- What is the current status of the car OEM telematics industry?
- Which are the key OEM telematics applications?
- How will regulatory developments affect the telematics industry?
- Which are the leading telematics service providers?
- How are mobile operators positioning themselves in the telematics value chain?
- What telematics offerings are available from the leading car OEMs today?
- What business models are used by car OEMs?
- How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?
Who should buy this Report?
The Global Automotive OEM Telematics Market is the foremost source of information about the rapid adoption of car telematics. Whether you are a car manufacturer, telematics service provider, telecom operator, content provider, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.
Key Topics Covered:
1. The global passenger car market
2. Car telematics solutions
3. OEM telematics propositions
4. Telematics solution providers
5. Market forecasts and trends
- BMW Group
- Beijing Yesway Information Technology
- Daimler Group
- Deutsche Telekom
- Fiat Chrysler Automobiles
- Ford Motor Company
- General Motors
- Honda Motor
- Hyundai Motor Group
- Jaguar Land Rover Automotive
- Mazda Motor Corporation
- Nissan Motor Company
- Octo Telematics
- PSA Peugeot Citroën
- Renault-Nissan Alliance
- SiriusXM Connected Vehicle Services
- Telefónica Group
- Tesla Motors
- Toyota Motor Corporation
- Verizon Communications
- Volkswagen Group
For more information visit http://www.researchandmarkets.com/research/63xj42/the_global
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