‘Connected’ vehicles to grow to 356M units in 5 years in OE and aftermarket

Jun 14, 2012

OEM and aftermarket connected car systems in use are expected to grow worldwide from 66 million in 2012 to 356 million in 2017. That’s according to the latest data from ABI Research. ABI says that while OEM solutions are gaining momentum rapidly across the globe, in the U.S., Europe, Japan and China, aftermarket solutions will continue to be used for applications such as stolen vehicle tracking, insurance telematics, infotainment and road user charging.

Dominique Bonte, ABI vice president and group director of telematics and M2M (machine-to-machine communication), said, “Arguably the most important barrier for the adoption of connected car technology is limited user awareness about the existence and/or the features and benefits of connected car solutions, closely followed by high costs, especially with recurring pricing models. Privacy issues and driver distraction risks are secondary concerns.

“However, the strong desire of users to continue to lead their connected lifestyles when in the car is set to be become a strong driver, especially with younger consumers. This is closely linked with in-car smartphone-integration technologies, which cater for a seamless transition. Decreasing hardware and connectivity prices driven by standardization and economies of scale will also help adoption reach mass-market levels in the next coming years.”

ABI noted that for all players involved, adopting open, upgradeable, standards-based platforms such as the ones proposed by GENIVI (a non-profit industry alliance committed to driving the broad adoption of an in-vehicle infotainment, or IVI, open-source development platform) and the Car Connectivity Consortium, considering the connected car as a strategic asset, developing systems combining embedded functionality, smartphone integration, cloud-based services and acquiring ecosystem expertise will be key success factors.