Global Connected Car M2M Market 2017-2021
About Connected Car M2M
Connected cars enable drivers to connect with online platforms and obtain real-time communication, such as real-time traffic updates while traveling. Over the years, automotive manufacturers and service providers have been developing connectivity solutions such as M2M connectivity platforms. M2M connectivity enables the interconnectivity between two vehicles. Connected cars enable drivers to connect with online platforms and obtain real-time communication, such as real-time traffic updates while traveling. Connected car services comprise of entertainment provided by content providers and advertisers, diagnostics by repair or maintenance providers, and navigation solutions. Other services include safety and security such as tracking services, road assistance, alarm systems, location sharing, concierge services, as well as analytics and insurance services.
Technavio’s analysts forecast the global connected car M2M market to grow at a CAGR of 27.52% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global connected car M2M market for 2017-2021. To calculate the market size, the report considers the revenue generated from OEM and aftermarket equipment.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Connected Car M2M Market 2017-2021
Technavio recognizes the following companies as the key players in the global connected car M2M market: Alpine Electronics, BMW, GM, and Audi.
Other Prominent Vendors in the market are: Bosch, Delphi Automotive, Ford Motor Company, Google, IBM, Mercedes-Benz, NXP Semiconductors, PSA Peugeot Citroën, Qualcomm, Sierra Wireless, Tech Mahindra, Toyota, Volkswagen, and Wipro.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is big data platform provided by connected cars to foster further developments. The growth of connectivity solutions in the automotive segment provides a huge opportunity to the automobile OEMs to develop an efficient product for the customers using real-time data. This data is expected to grow further due to the increasing adoption of connected cars during the forecast period. For instance, telematic devices will produce data for information like date, time, speed, acceleration, deceleration, cumulative mileage, fuel consumption, and navigation details. This data is approximately in the range of 6 MB to 20 MB per customer annually. Hence, the total data will be more than 1 TB per year for 100,000 vehicles. Such crucial data can be used by many stakeholders to augment their revenue stream.”
According to the report, one driver in market is availability of high-speed wireless networks. Telecom operators play a significant role in the growth of the global connected car M2M market as the connectivity of the connected car M2M modules and platforms depend solely on telecom networks. Some connected car M2M services require high-speed wireless networks. For instance, on-the-move radio streaming, music, video, location-based services (LBS), and on-demand content require high-speed wireless networks. Due to the wide reach of 3G and LTE networks, telecom operators can provide high-speed connectivity at lower tariffs to connected car M2M users. Many car manufacturers, connected car M2M platform developers, and telecom operators are expected to develop partnerships to launch LTE-based connected cars during the forecast period. The market has witnessed similar strategic partnerships in the past that fostered market growth. For instance, in 2014, Audi announced the launch of its S3 Sportback model in Europe with an embedded Gemalto LTE module.
Further, the report states that one challenge in market is lack of convergence between the lifecycles of automotive and mobile industries. The mobile devices industry has faster product lifecycles than the automotive industry. The lifecycle of products in the automotive industry is lengthier by quite a few years when compared to the smartphone industry. For example, the lifespan of a notebook or a laptop is about two and a half years, whereas a car is scrapped on an average after 15 years. This difference would prevent customers from following-up on the updates for hardware, new technology, and software that are evolving on a continuous basis in the connected cars segment. Infotainment systems that are generally embedded in the vehicle offer entertainment, phone, and navigation services via a touchscreen or display unit. However, the consumers are feeling disconnected with their IVI systems owing to the lag between the product cycles of smartphones and automobiles in the past few years. The technological advances in the vehicles take years to get commercialized. Thus, the automotive manufacturers and automotive infotainment manufacturers are not able to keep pace with the latest smartphones updates.
Alpine Electronics, BMW, GM, Audi, Bosch, Delphi Automotive, Ford Motor Company, Google, IBM, Mercedes-Benz, NXP Semiconductors, PSA Peugeot Citroën, Qualcomm, Sierra Wireless, Tech Mahindra, Toyota, Volkswagen, and Wipro.
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