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Strategic Analysis of the Connected Vehicles Market in Japan

Strategic Analysis of the Connected Vehicles Market in Japan

Executive Summary—Key Findings

The Japanese telematics services market is expected to reach 􂀀 million subscribers by 2020, which will account for a􂀀% penetration rate of new car sales

Connected Services Market: Executive Summary, Japan, 2013

13.2 million subscribers in Japan by 2020

Toyota is expected to be the leader with more than 􂀀 million subscribers, followed by Honda and Nissan with 􂀀 million and 􂀀 million subscribers, respectively.

Telematics service packages

Telematics services are mainly provided as optional features, and service packages are strongly dependent on the grade of the embedded navigation system. For entry grade, the services include navigation, smartphone links and apps, predictive route guidance, and in-vehicle infotainment (IVI). Services for high-end grades include HELPNET (emergency calls) and operator assistance. In future, telematics services are expected to become standard features.

Partnerships among OEMs – Not all companies have their own telematics services

OEMs offer their own telematics services, namely, Toyota (T-connect, G-BOOK), Honda (Internavi LINC Premium Club), Nissan (Nissan Connect CARWINGS), and Mazda (Mazda Connect). Among these OEMs, Toyota provides G-BOOK for Daihatsu and Subaru (used to provide its services for Mazda) and Nissan offers CARWINGS for Suzuki.

Business model – High initial cost

OEMs are mainly offering the initial payment model; they are not focused on the subscription model. However, consumers pay around $􂀀-$􂀀for an embedded navigation model when purchasing a vehicle. In many cases, this fee includes unlimited data communication and free updates of map data for 􂀀 years.

Navigation-centric telematics services

In Japan, telematics services are provided with navigation system-based services. Mazda is the only OEM that offers telematics services without an embedded navigation system. In future, intelligent transportation system (ITS) services will also be offered with navigation services.

About this report

This research service discusses the future of the telematics services market in Japan and focuses on the solutions offered by OEMs and key service providers. In Japan, the trend of telematics services is on the rise, with an emphasis on navigation services; however, the market is yet to realize significant revenue and witness intense competition among its participants. The study offers a strategic overview of the Japanese connected telematics services market, including an analysis of key technology trends, challenges, and market size and forecast, focusing on subscriber volumes for the period 2013 to 2020.


  • Executive Summary
    • Executive Summary-Key Findings
    • Executive Summary-Market Engineering Measurements
    • Executive Summary-Subscription Number Forecast by OEM
      • Table Connected Services Market: Subscription Number Forecast by OEM, Japan, 2013-2020
    • Executive Summary-Comparative Services Snapshot by OEM
    • Executive Summary-Connected Service Offerings by OEM
    • Executive Summary-Key Conclusions and Future Outlook
  • Research Scope, Objectives, Background, and Methodology
    • Research Scope
      • Table Passenger Vehicle Market: Unit Sales Forecast, Japan, 2013-2020
    • Research Aims and Objectives
    • Key Questions this Study Will Answer
    • Research Background
    • Research Methodology
    • Key OEM/Participant Groups Compared in this Study
  • Definitions and Segmentation
    • Services Segmentation and Definitions
    • Vehicle Segmentation
  • Global Connected Vehicles Market Snapshot
    • Global Connected Car Market-Key Connectivity, Telematics, and Infotainment Trends
    • Global Connected Car Market-Key Regional Highlights
    • Global Connected Car Market-Key Regional Solution Highlights
  • Japanese Connected Services Outlook
    • Japanese Government Vision for ITS
    • Connected Telematics Services in Japan
  • Drivers and Restraints-Total Market
    • Market Demand Influencers-Open Automotive Alliance (OAA)
    • Market Demand Influencers-CarPlay by Apple
    • Market Demand Influencers-PV Sales Forecast by OEM
    • Market Demand Influencers-PV Sales Forecast by Segment Type
    • Market Demand Influencers-Navigation System Sales and Penetration
    • Market Drivers
    • Drivers Explained
    • Market Restraints
    • Restraints Explained
  • Forecasts and Trends-Total Market
    • Japanese Connected Services Market-Top 5 Key Findings
    • Japanese Subscription Number Forecast
      • Table Connected Services Market: Subscription Number Forecast by OEM, Japan, 2013-2020
    • Market Engineering Measurements
      • Table Connected Services Market: Market Engineering Measurements, Japan, 2013
    • Connected Services Market-Subscriber Forecast Scenario Analysis
      • Table Connected Services Market: Subscriber Forecast Scenario Analysis, Japan, 2013-2020
    • Connected Services Market-Forecast Scenario Assumptions
    • Generation of Implemented Telematics Services
  • Key OEM Profiles
    • Toyota-Connected Service Offerings
    • Toyota-T-connect Overview
    • Nissan-Connected Service Offerings
    • Nissan-Probe Vehicle Data
    • Honda-Connected Service Offerings
    • Honda-Probe Vehicle Data
    • Mazda-Connected Service Offerings
    • Mazda-Connected System Architecture
  • Service Provider Outlook
    • Service Providers-Probe Data Service by Pioneer
    • Service Providers-NTT DOCOMO
    • Service Providers-NTT DOCOMO-Partnership with OEMs
  • Telematics Hardware Supplier Outlook
    • Telematics Hardware Manufacturer-Participant Snapshot
  • Conclusions and Future Outlook
    • Key Conclusions and Future Outlook
    • The Last Word-3 Big Predictions
  • Appendix
    • Abbreviations and Acronyms Used
    • Market Engineering Methodology

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