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.
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