Skip to main content

Connected Vehicles Apply Open Source Technologies

The Internet of Things (IoT) is already having a significant impact on product development in the automobile industry. As the IoT applications mature, analysts are predicting the increasing adoption of open source hardware and software technologies.

Moreover, while 4G networks would be preferred by automakers to power the connected car, it is 3G networks that will carry the data driving the majority of its global telematics and infotainment services revenues.

In fact, according to the latest market study by ABI Research, it will be after 2020 that 4G becomes the leading connection technology for OEM telematics revenues.

It is typical for verticals with long product lifecycles, such as automotive, to show delayed uptake of next generation technologies, such as 4G, due to slower penetration into the installed vehicle base.

"There are exceptions. For instance, in the United States, Japan and Korea, 4G will lead revenue generation," said Dan Shey, VP and IoT practice director at ABI Research.

But interestingly it will take until 2018 and into 2019 for 4G to carry the majority of the connected vehicle data traffic driving OEM telematics revenues.

In India, 2G will stay the dominant telematics network carrier for the next 5 years; China's revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020.

The types of supply chain services generating connected car revenues are equally diverse and highly country dependent. Today, professional services including hardware and software integration, consultancy, and project management generate the majority of global IoT supplier revenues.

But by 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead. Data and analytics revenues will also become a major revenue generator later in the forecast period exceeding connection, security and network services revenues.

By 2020, the connected car supply chain will start seeing some dramatic shifts, which are reflected in the changing revenue ratios between the different service categories.

Open source hardware reference platforms, third party mobile ecosystem integration, and the shift towards open cloud-based approaches will start eating into traditional Tier-one professional service revenues, forcing vendors such as Harman, Bosch and Continental to move into new areas and competences -- including data analytics, OTA and security monitoring services.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C