ABI Research Forecasts Global Penetration of OEM Telematics in New Passenger Cars to Exceed 72% by 2021

LONDON, March 1, 2016 /PRNewswire/ -- ABI Research, the leader in transformative technology innovation market intelligence, forecasts the global penetration of embedded and hybrid factory installed OEM telematics in new passenger cars to exceed 72% by 2021. Growth will mainly be driven by key volume car OEMs in the U.S., European Union, and China markets. Brands within these markets showing accelerated growth include GM, which expects to reach 12 million OnStar subscribers globally by the end of 2016, including its Opel brand in Europe and Cadillac in China; and Ford, which claims to have already 15 million SYNC-equipped vehicles on the road worldwide.

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"While lower cost hybrid approaches remain attractive to end users, a clear trend toward embedded solutions can be observed, as illustrated by Ford's recently announced SYNC Connect," says Dominique Bonte, Managing Director and Vice President at ABI Research. "At the same time, embedded solutions are made more affordable through shared data plans, allowing customers to avoid purchasing a separate connected car data plan by adding allowing their connected cars to existing plans."

The rising embedded solutions trend is resulting in fierce competition among carriers vying to capture lucrative connected car market share in an increasingly saturated mobile environment. While in the U.S., AT&T and Verizon are pitched against each other, Vodafone, T-Mobile, and Telefonica are competing in Europe. Meanwhile in China, major carriers are also actively targeting the automotive segment.

The strong expected growth of OEM connected car solutions is due to a number of factors, which include eCall mandates in the EU and Russia, increasing user awareness about safety, and improved value propositions through additional services such as UBI, preventive maintenance, and remote control capabilities via smartphones and wearables.

Additionally, ABI Research anticipates next-generation use cases, such as vehicles used as delivery locations and Car-to-Home applications, to start gaining momentum and increase the perceived value of connected car offers from car manufacturers like Volvo, Ford, BMW, and Toyota.

"Despite major market growth in OEM telematics, though, cyber security continues to remain a challenge," concludes Bonte. "To overcome this obstacle, many car OEMs are implementing over-the-air software capabilities, which in itself is expected to become a major growth driver for vehicle connectivity in the future."

These findings are part of ABI Research's Automotive Safety and Autonomous Driving Service (https://www.abiresearch.com/market-research/service/safety-and-security-telematics/), which includes research reports, market data, insights, and competitive assessments.

About ABI Research

For more than 25 years, ABI Research has stood at the forefront of technology market intelligence, partnering with innovative business leaders to implement informed, transformative technology decisions. The company employs a global team of senior analysts to provide comprehensive research and consulting services through deep quantitative forecasts, qualitative analyses and teardown services. An industry pioneer, ABI Research is proactive in its approach, frequently uncovering ground-breaking business cycles ahead of the curve and publishing research 18 to 36 months in advance of other organizations. In all, the company covers more than 60 services, spanning 11 technology sectors. For more information, visit www.abiresearch.com.