New market report from The Global Automotive OEM Telematics Market – 9th Edition which analyses the latest developments on the connected car market worldwide. This study provides you with 270 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.
Several categories of car telematics applications are now offered on a commercial basis by carmakers. Examples include eCall and roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, over-the-air (OTA) updates, connected navigation and infotainment, entertainment services such as music and video streaming, Wi-Fi hotspots as well as concierge services and convenience applications. Convenience applications include remote control of vehicle functions such as door lock/unlock, vehicle preconditioning (heating or cooling of the passenger compartment before a trip), EV charging management and finding the last parking position. Several other applications also exist, for instance, usage-based insurance, leasing and rental fleet management as well as electronic toll collection and road charging. Carmakers are also exploring in-vehicle commerce platforms and data exchanges to offer telematics data to third-party service providers. During the past years, carmakers have supported third-party service providers with APIs enabling data access and SDKs for application development. A major trend in the connected car industry is moreover the increasing adoption of Android Automotive OS and Google Automotive Services (GAS). GM, Honda, Renault, Lincoln, Nissan, Volvo Cars and Polestar already have cars on the road today equipped with Android Automotive OS and GAS. Several other car OEMs have announced plans to adopt these in future car models.
The connected car is a major trend in the automotive industry and virtually all of the world’s leading carmakers have launched mass-market services in key regions. The drivers behind the adoption of OEM telematics are both commercial and regulatory. Regulatory initiatives related to safety and security will have a decisive effect on the adoption of OEM telematics in Europe. The EU’s eCall initiative and Russia’s ERA-GLONASS have made an automatic emergency call device a mandatory safety feature in all new car models sold. In North America, commercial services have driven the adoption of OEM telematics services that have evolved from being a differentiator to a mainstream feature now offered by all the leading car brands on a large majority of their models.
Berg Insight estimates that about 75 percent of all new cars sold worldwide in 2023 were equipped with an OEM-embedded telematics system, up from 72 percent in 2022. North America is the most advanced market in terms of premium telematics services with an attach rate of 91 percent. The EU+EFTA+UK region is just behind and had an attach rate of 90 percent. Other developed markets such as Japan and South Korea currently have attach rates of approximately 81 percent. China is an important market for telematics services with an attach rate of about 78 percent in 2023. In other regions, the attach rate is still below 40 percent. As many volume brands such as Toyota, GM, Stellantis, Ford, Volkswagen, Hyundai, Honda and Nissan now offer connected services for free in their main markets, they will constitute a large part of the growth of connected car subscriptions in the coming years. Premium brands such as BMW, Mercedes-Benz and Audi have offered telematics services as a standard feature across models and geographies for more than a decade and have a considerable number of subscribers. Other major car brands offering embedded telematics on a broad scale include Kia, Tesla, Renault, Geely, BYD, Volvo Cars, SAIC, GWM and Changan Motors.
Berg Insight estimates that total shipments of embedded OEM telematics systems reached 59.3 million units worldwide in 2023. Growing at a compound annual growth rate of 6.9 percent, the shipments are expected to reach 82.9 million units in 2028. During the same time, the attach rate of embedded telematics units is forecasted to increase from about 75 percent in 2023 to 94 percent in 2028. The number of telematics subscribers using embedded systems is forecasted to grow at a compound annual growth rate of 14.6 percent from 239.7 million subscribers in 2023 to 473.8 million in 2028.
Highlights from this report:
– Insights from 30 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 21 major car OEMs and their telematics propositions.
– Updated market forecasts by region lasting until 2028.
This report answers the following questions:
– What is the current status of the car OEM telematics industry?
– Which are the key OEM telematics applications?
– Which are the leading telematics service providers?
– How are mobile operators and IoT managed service providers 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 connected car data consumption evolve in the next years?
– How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?