"Connected car sales to reach 65 million units by 2025"
Published2019.12.30 10:00LTE, which supports remote services, OTA updates, and advanced diagnostics, drives growth
By 2025, global electric vehicle (EV) sales are expected to reach approximately 30 million units, and sales of connected cars with built-in telematics are expected to increase to 65 million units.
According to the '2025 Automotive Industry Embedded Telematics Market Analysis Report' published by global market research firm Frost & Sullivan, connected car sales, which recorded 23 million units in 2018, are expected to increase to 65 million units in 2025, driven by 4G LTE's support for remote services, OTA (Over the Air) updates, and advanced diagnostic functions.
In fact, the telematics systems of the Hyundai Ioniq and Kia Niro already provide services such as vehicle charging information, charging station locations, charger availability, and connection compatibility.
▲ Connected car demonstrated by Hyundai Motor Company at CES 2015 <Photo = Hyundai Motor Group>
Growth opportunities for automotive OEMs in the embedded telematics market include: ▲building partnerships with startups and platform companies ▲integrating connected services and selling vehicle data collected from connected cars ▲improving predictive analysis interfaces through hardware and software platform integration by 2025 ▲simplifying logistics and optimizing costs. ▲Utilization of carrier agnostic eSim technology that helps ▲Collaboration with technology providers to provide integrated OTA upgrade capabilities for automotive cockpit system software.
“As connectivity services become increasingly popular among car owners, telematics has emerged as a key differentiating factor,” said Shim Jin-han, Director, Frost & Sullivan Korea. “Telematics helps OEMs strengthen their brands while enabling them to sustain customer relationships by shifting car sales from one-time transactions to service-oriented ones.”
He continued, “As autonomous driving and vehicle-to-vehicle connectivity have greatly improved, related companies have evolved beyond the concept of simple telematics service providers to technology innovation partners.” He added, “As connected cars generate a significant amount of data, the relationship between automobile OEMs and data suppliers must change from a service subscription model to a customized pricing and revenue distribution model.”
Meanwhile, the report includes an analysis of the strategies, competitive landscape, business models, and future promising areas of automotive OEMs, telematics service providers, and technology companies in the embedded telematics market, as well as market trends, potential market opportunities, and strategic insights for related companies.
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