Telecom Lead Asia: OEM and aftermarket connected car
systems in use are likely to grow from 66 million in 2012 to 356 million in
2017.
While OEM solutions are gaining momentum rapidly across
the globe in the US, Europe, Japan, and China, aftermarket solutions will
continue to be used for applications such as stolen vehicle tracking, insurance
telematics, infotainment, and road user charging.
Arguably the most important barrier for the adoption of
connected car technology is limited user awareness about the existence and/or
the features and benefits of connected car solutions, closely followed by high
costs, especially with recurring pricing models. Privacy issues and driver
distraction risks are secondary concerns,” said Dominique Bonte, vice president
and group director, telematics and M2M, ABI Research.
The strong desire of users to continue to lead their
connected lifestyles when in the car is set to be become a strong driver,
especially with younger consumers. This is closely linked with in-car
smartphone-integration technologies which cater for a seamless transition.
Decreasing hardware and connectivity prices driven by
standardization and economies of scale will also help adoption reach mass
market levels in the next coming years. Finally, regulation is set to become a
key driver in regions such as Europe, Russia, and Brazil.
For all players involved adopting open, upgradeable,
standards-based platforms such as the ones proposed by GENIVI and the Car
Connectivity Consortium, designing superior HMI, considering the connected car
as a strategic asset, developing systems combining embedded functionality,
smartphone integration, cloud-based services, and acquiring ecosystem expertise
will be the key success factors.
OEM connected car system shipments to grow to 8.22 million in
2012
Recently, ABI Research said OEM connected car system
shipments are likely to grow to 39.5 million in 2016 from 8.22 million in
2012.
The United States and Western Europe will remain the
leading regions.
Car OEMs such as GM, Toyota, Nissan, Hyundai, and
Mercedes Benz are looking to China as the next major expansion area for
launching connected car solutions to maintain or enhance their competitive
position in this fledgling market.
editor@telecomlead.com