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

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe