LONDON, UK: OEM and aftermarket consumer telematics systems continue to gain momentum in both developed and developing regions due to growing popular awareness of their many benefits related to safety, security, maintenance, convenience, infotainment, and cost savings. These benefits will drive growth from 37 million telematics users in 2010 to more than 211 million in 2015.
ABI Research practice director Dominique Bonte comments: “Telematics drivers are diverse, ranging from regulation in Europe (eCall) and legislation in Brazil (SVT) to cheaper telematics connectivity, hardware, software, and services. However, barriers remain: privacy concerns have slowed down the legislation process in Brazil, and industry fragmentation and confusion about business models and service architectures continue to haunt the automotive ecosystem.”
While the number of telematics subscribers will see very strong growth in the coming years, direct revenue growth will be slower due to an increasingly large number of free non-embedded, hybrid and phone-based solutions such as Ford SYNC.
Many automotive OEMs such as General Motors, Mercedes-Benz, Volvo, and BMW are eager to embrace the smartphone as a connected vehicle remote control for door unlock and engine start, remote diagnostics such as electrical vehicle battery status, or for eCall and bCall services.
Solutions such as Continental’s Android-based AutoLinQ take this approach one step further by turning embedded systems into open platforms accessible to third party software developers hoping to break the automotive paradigms of long development cycles, high costs and lagging innovation.
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