Skip to main content

How Connected Cars will Create Multiple Opportunities

Important developments in the consumer and commercial telematics arena have subtly changed the nature of the industry altogether -- particularly within the consumer telematics space. Vehicle manufacturers are taking telematics extremely seriously, as connectivity can now make or break the sale of a much more valuable item, that is, the purchase of an automobile.

Global revenues from consumer and commercial telematics are forecast to reach nearly $20 billion by 2018 -- with additional soft revenues being generated from areas such as car servicing, big data enabled by telematics, and enhanced customer service offerings.

These additional soft revenues will form a key part of the future Connected Cars market as they will allow automotive manufacturers to generate revenues throughout the lifetime of the vehicle, rather than just at the point of sale.

Findings from a new market study by Juniper Research, however, claims that these soft revenues will still remain a major untapped revenue source for the consumer telematics industry.


How Embedded SIM Cards Enable New Revenues

Meanwhile regulation in key markets -- especially those in Europe and Latin America -- will mandate the inclusion of Subscriber Identity Modules (SIMs) in all new vehicles allowing Original Equipment Manufacturers (OEMs) to develop revenue streams around the embedded SIM model.

According to Juniper's assessment, split billing will also become increasingly important.

"The ability to split the telematics bill, pioneered by major operators and systems integrators will have a positive impact on the telematics market. Granular billing for infotainment and other services will lead to new business models," said Anthony Cox, associate analyst at Juniper Research.

Juniper anticipates that app integration into the vehicle through smartphone-tethering and direct integration into the head-unit will be accelerated by the launch of services like Apple’s in-vehicle offering CarPlay.

It argued that in-vehicle apps will become widespread in the next five years, even though most apps will be available free of charge.

Further findings from the market study include:
  • Widespread smartphone-tethering and in-vehicle Apps will continue to drive down the price of vehicle manufacturers’ own embedded infotainment services.
  • The use of 4G LTE is becoming widespread in developed markets for telematics and infotainment, particularly in North America and Europe, despite a higher module cost.

Popular posts from this blog

Hybrid Work: How to Enhance Employee Productivity

When you hire qualified talent for a key role and trust them to perform, you'll likely achieve the best outcome. Skilled and experienced people will deliver results, regardless of the challenges. That's a key lesson learned from the pandemic experience as most knowledge workers were asked to work from their homes. However, some resist returning to an open-plan office. It's unacceptable. Meanwhile, forward-thinking leaders decided a "return to normal" is undesirable, and in hindsight, everyone should aspire to be more accomodating than before. Therefore, location flexibility is okay. Hybrid Workforce Market Development How will people adapt to these changes? They'll apply the modern IT tools at their disposal. They'll learn new skills and thrive. Nearly 80 percent of employees are now successfully using online collaboration tools for work in 2021 -- that's up from just over half of workers in 2019, according to the latest market study by Gartner. This g

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Upside for New 5G Network Transport Infrastructure

The global mobile communication sector is in the midst of a significant network infrastructure upgrade to support the introduction of new high-bandwidth and low-latency broadband service offerings.  Telecom service provider data centers have an important role in fifth-generation (5G) network deployments. Providers undergoing their transition to Stand-Alone (SA) 5G must understand the technical demands of telco data centers and the key enablers of those offerings. According to the latest worldwide market study by ABI Research, the major prerequisites of 5G and the emerging transport solutions would help operators position themselves to successfully capitalize on the new revenue opportunities from delivering differentiated 5G connectivity services. 5G Transport Network Market Development "The rise of the telco data center has a high degree of confluence with the requirements of SA 5G architectures. SA 5G and its increasing reliance on telco data centers can be attributed to the incr