Embedded Car OEM Telematics Subscribers Exceeded 200 Million in 2022
What are the latest trends in the global car OEM telematics market? The analyst estimates that nearly 72 percent of all cars sold worldwide in 2022 were equipped with OEM embedded telematics. Examples of applications include eCall and roadside assistance, stolen vehicle tracking, vehicle diagnostics, connected navigation and infotainment, Wi-Fi hotspot, convenience applications, over-the-air updates, in-vehicle payments, usage-based insurance, leasing and rental fleet management, as well as electronic road charging. Get up to date with the latest industry trends in this new 260-page report.
The number of telematics service subscribers using embedded systems will grow at a compound annual growth rate (CAGR) of 16.1 percent from 202.3 million subscribers at the end of 2022 to 426.4 million subscribers at the end of 2027. Moreover, the analyst forecasts that shipments of embedded car OEM telematics systems worldwide will grow from 50.3 million units in 2022 to reach 77.3 million units in 2027, which represents an attach rate of 94 percent at the end of the forecast period. New passenger car and light truck registrations increased by 0.3 percent to 69.7 million worldwide in 2022. Performance was highly affected by the semiconductor shortage in several markets. The analyst still anticipates high growth of OEM telematics subscribers in the next years as connected car services become ubiquitous in all major car markets.
Carmakers are still experimenting with business models for connected car services as renewal rates for telematics subscriptions after the initial free period still remain relatively low. Competition and local regulations will likely lead to that a growing number of brands will offer free basic services such as safety and diagnostics for the lifetime of the vehicle. Carmakers are expected to offer connected car services through a modular sales approach where customers can order services individually and thus generate revenues on value-added services built on top of basic telematics services. Carmakers have also begun selling premium features and enhancing car performance via OTA updates. BMW for example offers a range of vehicle functions in the form of digital after-sales services in the ConnectedDrive store. Other carmakers offering similar services include Tesla, Mercedes-Benz, Audi and Porsche. The increasing adoption of the Android Automotive OS and Google Automotive Services (GAS) is moreover a trend in the automotive industry and will likely have an effect on the connected car value chain in the future. Traditional vehicle-based platforms have also faced intense competition from portable and nomadic devices and have had a severe disadvantage in the longer development cycles.
“Connected car services have evolved from being a differentiating factor to a commodity. To offer more attractive digital experiences, carmakers increasingly focus on incorporating third-party apps into infotainment systems, providing access to the same apps that drivers have in their smartphones”, said Martin Cederqvist, IoT Analyst. Android Auto and Apple Carplay have been a way to incorporate third-party apps, but carmakers are more and more focused on providing access to the apps directly through the car infotainment system, without the need for smartphone connectivity. The increasing adoption of Google Automotive Services (GAS) has been a popular means to achieve this.
General Motors had more than 21.0 million connected cars at the end of 2022 and BMW had about 20.0 million connected cars. Toyota Motor Group, Stellantis and Volkswagen make up the remaining top five carmakers in terms of embedded OEM telematics subscribers. “As many volume brands now offer connected services for free in their main markets it is expected that such players will constitute a large part of the growth of connected car subscriptions in the coming years”, concluded Mr Cederqvist. Additional automotive OEMs with more than 10.0 million active connected cars at the end of 2022 include Ford, Mercedes-Benz and Hyundai.
Highlights from the report:
- Insights from 30 executive interviews with market leading companies.
- New data on car populations and new car registrations worldwide.
- Comprehensive overview of the car OEM telematics value chain and key applications.
- In-depth analysis of market trends and key developments.
- Detailed profiles of 21 major car OEMs and their telematics propositions.
- Updated market forecasts by region lasting until 2027.
This report answers the following questions:
- What is the current status of the car OEM telematics industry?
- Which are the key OEM telematics applications?
- Which are the leading telematics service providers?
- How are mobile operators and MVNOs positioning themselves in the telematics value chain?
- What telematics offerings are available from the leading car OEMs today?
- What business models are used by car OEMs?
- How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?
- How will autonomous cars, electric vehicles and carsharing change the need for connectivity?
Who should read this report?
The Global Automotive OEM Telematics Market is the foremost source of information about the rapid adoption of car telematics. Whether you are a car manufacturer, telematics service provider, telecom operator, content provider, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.
Table of Contents
Executive Summary
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Aeris
- Airbiquity
- Airnity
- América Móvil
- AT&T
- Audi
- Beijing Yesway Information Technology
- BMW Group
- BYD Auto
- Cariad
- Cerence
- Changan Motors
- China Unicom
- Cubic Telecom
- Deutsche Telekom
- Ford Motor Company
- Free2Move
- Geely
- General Motors
- GM OnStar telematics services
- Great Wall Motors
- Harman International
- Honda Motor
- Hyundai Motor Group
- IMS
- Infiniti
- Jaguar Land Rover
- KDDI
- Kia
- Leasys
- LexisNexis
- Mazda Motor Corporation
- Mercedes-Benz Group
- Nissan Motor Company
- Octo Telematics
- Orange
- Otonomo
- Peugeot
- Citroën
- DS Automobiles
- Vauxhall
- Opel
- Porsche
- Renault Group
- SAIC Motors
- SiriusXM Connected Vehicle Services
- Stellantis
- Subaru
- T-Mobile USA
- Targa Telematics
- Tata Communications
- Telefónica Group
- Tesla
- Toyota Motor Corporation
- Transatel
- Verisk Analytics
- Verizon Communications
- Vodafone
- Volkswagen Group
- Volvo Cars
- Wejo
- WirelessCar
- Xevo
Methodology
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