Higher Production of EVs to increase demand of telematics systems
Embedded telematics is likely to increase from 23 million in 2018 to 65 million in 2025
Frost & Sullivan's Analysis of Embedded Telematics in the Automotive Industry suggests with global sales of electric vehicles (EVs) forecast to rise to about 30 million units by 2025, connectivity solutions like telematics are expected to grow in application scope. New telematics systems from Hyundai's Ioniq and Kia's Niro already provide vehicle charging information, charging station locations, charger availability and connection compatibility. The new 4G Long-Term Evolution (LTE) is opening up additional opportunities by enabling remote services, over-the-air (OTA) updates, and advanced diagnostics. The number of connected cars with embedded telematics is likely to increase from 23 million in 2018 to 65 million in 2025.
"With the rising popularity of connected services among fleet owners, telematics has become a key differentiator for OEMs. Telematics is also helping OEMs strengthen their brand, converting one-time sales into ongoing service-centred relationships," said Anubhav Grover, Mobility Research Analyst. "For instance, Honda has launched its SmartCharge Beta Program, which integrates a vehicle telematics system with the city grid, thus providing users with incentives to charge their EVs when the electricity demand is low."
"With greater vehicle autonomy and Vehicle-to-Vehicle (V2V) connectivity, participants have evolved from being mere telematics service providers to being technology innovation partners," noted Grover. "Furthermore, with connected cars generating greater volumes of data, OEMs/data aggregators will need to transform from a subscription model to a customised pricing- and revenue-sharing model."