Car OEM Telematics Leads IoT Segments, Generates $60B of Service Revenues in 2020


Reading time ( words)

While 4G networks would be preferred by automakers to power the connected car, it is 3G networks that will carry the data driving the majority of its global telematics and infotainment services revenues. In fact, it will be after 2020 that 4G becomes the leading connection technology for OEM telematics revenues. It is typical for verticals with long product lifecycles, such as automotive, to show delayed uptake of next generation technologies, such as 4G, due to slower penetration into the installed vehicle base. Similar cellular technology adoption data for over 30 of the largest IoT application segments can be found in ABI Research’s recently launched IoT Market Tracker.

VP and IoT Practice Director, Dan Shey comments, “There are exceptions. For instance, in the United States, Japan and Korea, 4G will lead revenue generation. But interestingly it will take until 2018 and into 2019 for 4G to carry the majority of the data traffic driving OEM telematics revenues. In India, 2G will stay the dominant telematics network carrier for the next 5 years; China’s revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020.”

The types of supply chain services generating connected car revenues are equally diverse and highly country dependent. Today, professional services including hardware and software integration, consultancy, and project management generate the majority of global IoT supplier revenues. But by 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead. Data and analytics revenues will also become a major revenue generator later in the forecast period exceeding connection, security and network services revenues.

VP and Automotive Practice Director, Dominique Bonte comments, “By 2020, the connected car supply chain will start seeing some dramatic shifts, which are reflected in the changing revenue ratios between the different service categories in ABI Research’s IoT Market Tracker. Open source hardware reference platforms, third party mobile ecosystem integration, and the shift towards cloud-based approaches will start eating into traditional Tier 1 professional service revenues, forcing vendors such as Harman, Bosch and Continental to move into new areas and competences including data analytics, OTA and security monitoring services.

The IoT Market Tracker provides connections and services revenues for 2G, 3G, 4G, fixed line and satellite connections across 32 application segments, 30 industry verticals and 4 size of business segments covering 18 separate countries and regions. It is part of ABI Research’s IoE coverage, which includes Research Reports, Market Data, Insights, and Competitive Assessments.

About ABI Research

ABI Research provides technology market research and technology intelligence for industry innovators. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990.

Share

Print


Suggested Items

My View from CES 2021: Day 1

01/12/2021 | Dan Feinberg, Technology Editor, I-Connect007
What a difference a year makes. One year ago, those of us who cover and attend CES were going from one press conference to the next; this year, we are at home going from link to link. Confusing and challenging, yes, but there are some advantages: no masks, only five steps to get to a restroom, being able to have three of four events or more displaying on your screens at the same time and being able to download press kits as needed. So far, many new devices are being introduced, but of course, they are all online, so you wonder if some of them really exist or are truly operational as yet.

CES 2021: Just How Different Will It Be?

01/11/2021 | Dan Feinberg, I-Connect007
CES 2021 starts today and this year there is no need for an overpriced hotel room in Vegas, no long lines to get a taxi or board a bus, and no crowded exhibit halls (one good thing this year). On the other hand, you must decide ahead of time what you want to see and make a reservation or appointment if you wish to have time and access assured.

CES 2020: The Intelligence of Things

01/06/2020 | Nolan Johnson, I-Connect007
Show week for CES 2020 starts well ahead of the actual exhibition dates because it is huge. The organizers of CES state that there are more than 4,400 exhibiting companies and nearly three million net square feet of exhibit space. On the floor, you can find 307 of the 2018 Fortune Global 500 companies. Over the week, I-Connect007 Editors Dan Feinberg and Nolan Johnson will bring you some of the most interesting news, products, and announcements from 5G to IoT, semiconductor developments, autonomous vehicle technology, interconnect, fabrication materials, and much more.



Copyright © 2021 I-Connect007. All rights reserved.