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Connected Vehicle Apps will Grow at 34.5 Percent CAGR

The introduction of new applications will give greater meaning to the esoteric concept of mobile machine to machine (M2M) communications. As an example, the number of new cars shipping globally with factory-installed safety and security telematics is expected to grow from 11.5 million in 2013 to 50.8 million in 2018, with a CAGR of 34.5 percent.

"Traditional safety and security telematics services such as eCall, bCall, stolen vehicle tracking, and remote diagnostics continue to be rolled out across the globe. Recent announcements include VW’s Car-Net in the US, GM’s Onstar in Mexico, and a host of domestic and foreign car OEM offers recently having become available in China, said Dominique Bonte," vice president at ABI Research.

However, the high expectations surrounding telematics mandates -- such as the EU eCall, Russia ERA GLONASS, and Brazil CONTRAN stolen vehicle tracking legislation -- have not materialized due to successive delays, mounting uncertainty and criticism on technology choices becoming outdated.

More promising trends include the use of mobile network telematics technology for toll collection and road user charging and the quickly growing insurance telematics market.

While safety telematics services remain a core component of most connected car solutions, car OEMs such as Ford, BMW and Daimler are increasingly looking at ADAS, V2X, and various forms of autonomous driving to add additional levels of active safety functionality by focusing on collision prevention and ultimately aiming at making a zero-accident environment a reality.

Usage Based Insurance is already bridging the gap between passive and active safety via driver behavior monitoring alerts and feedback aimed at reducing driver risk.

At the same time, while connected in-car infotainment is about to become main stream, the need for security protection against cyber-attacks and intrusions becomes ever more critical and will start dominating safety and security telematics in the near future.

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