Skip to main content

Automobile Telematics Enable New App Development

The global automotive industry continues to explore ways to integrate the internet of things (IoT) technology into vehicles during the manufacturing process. Connected car capabilities provide the foundation for third parties to offer innovative new telematics-related applications.

According to the latest worldwide market study by Berg Insight, the number of active aftermarket car telematics units will grow at a compound annual growth rate (CAGR) of 20.6 percent from 58.7 million at the end of 2018 to 150 million at the end of 2023.

Automobile Telematics Market Development

Berg Insight’s definition of an aftermarket car telematics solution includes both cellular GNSS and RF-based solutions. A growing number of aftermarket telematics services have in the past few years become available for consumers that want to add services and connectivity to automobiles.

Berg Insight forecasts that shipments of aftermarket car telematics devices for consumer applications will grow from 20.3 million units in 2018 to reach 51.0 million in 2023.

"Aftermarket car telematics solutions are useful in a number of application areas including stolen vehicle tracking and recovery (SVT/SVR), vehicle diagnostics, Wi-Fi hotspot, convenience applications and usage-based insurance," said Martin Svegander, an analyst at Berg Insight.

Vehicle diagnostics allows service providers such as dealers and workshops to improve service offerings to car owners. Dealers and finance companies can also leverage telematics for internal fleet management and manage the customer lifetime value.

Examples of convenience applications enabled by aftermarket telematics devices include remote control of certain vehicle functions such as door lock/unlock and finding the last vehicle parking position.

Aftermarket car telematics services are offered by a wide range of vendors. Examples of leading telematics companies selling services via third parties or directly to consumers include Octo Telematics, Spireon, Ituran, Mojio, Scope Technology, Automatic Labs (SiriusXM), CalAmp (LoJack), Bright Box, Viasat Group and Vodafone Automotive.

Distributing services and products through third parties is the most common way to market for aftermarket car telematics solution vendors. Important sales channels include insurance companies, dealers, mobile network operators and online retailers.

Outlook for Automobile Telematics Application Growth

Some solution vendors also market their products on their own websites and through telemarketing. The connected car market is highly important for mobile network operators that bet on the IoT market.

Many telecom service providers have already started to explore the aftermarket car telematics opportunity and they are well-positioned to provide such services.

"Mobile network operators can accelerate sales by targeting their existing customer base as well as leverage an ecosystem of partners to pursue data monetization opportunities for their installed base of car telematics solutions," added Mr. Svegander.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

How Cloud Fuels Digital Business Transformation

Across the globe, many CEOs invested in initiatives to expand their digital offerings. User experience enhancements that are enabled by business technology were a priority in many industries. Worldwide end-user spending on public cloud services is forecast to grow 21.7 percent to a total of $597.3 billion in 2023 -- that's up from $491 billion in 2022, according to the latest market study by Gartner. Cloud computing is driving the next phase of digital transformation, as organizations pursue disruption through technologies like generative Artificial Intelligence (AI), Web3, and enterprise Metaverse. Public Cloud Computing Market Development "Hyperscale cloud providers are driving the cloud agenda," said Sid Nag, vice president at Gartner . Organizations view cloud computing as a highly strategic platform for digital transformation initiatives, which requires providers to offer new capabilities as the competition for digital business escalates. "For example, generativ

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year