Report: Factory-installed telematics to reach 15.7 percent in new cars in 2013

Safety and security to drive comeback for telematics, report claims.


With infotainment functionality such as music streaming, connected navigation, and social networking having dominated much of the connected car market in 2011 and 2012, traditional safety and security telematics is expected to make a comeback in 2013 due to growing awareness about its importance from consumers and governments alike, according to ABI Research.

Penetration of factory-installed safety and security telematics shipping globally in new cars will reach 15.7 percent in 2013.

"Mandates for stolen vehicle tracking in Brazil (CONTRAN) and emergency calling in Russia (ERA GLONASS) are finally becoming a reality in 2013. And the EU's eCall is being prepared for launch in 2015," said Dominique Bonte, vice president and practice director.

However, increasingly the telematics industry is shifting from reactive solutions, to systems that can help avoid and prevent safety and security hazards:

  • Driver behavior monitoring improving driving skills, reducing the risk of accidents.
  • Insurance telematics/UBI as an incentive for safer driving.
  • Prognostics and preventive maintenance avoiding break downs and reducing repair costs.

OEMs and dealerships are increasingly looking at telematics as a customer relationship tool to enhance the car experience, piece of mind of car ownership, and ultimately build a more loyal customer base. In this respect remote diagnostics and in the future remote updates are the core features around which the automotive industry is going to transform into a service industry.

ABI Research's market database offers quantitative insight into the OEM, aftermarket, and converged safety and security telematics environment. Associated forecast data include subscribers, service revenue, hardware shipments, and revenue, where applicable. Additional data such as penetration rates, a comparison of OEM offerings, and their vendor relationships are also provided by region.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research's worldwide team of experts advises thousands of decision makers through 70-plus research and advisory services. For more information, visit www.abiresearch.com , or call 516.624.2500 .

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