The number of telematics service subscribers using embedded systems will grow at a compound annual growth rate (CAGR) of 31.9 per cent, from 49m subscribers at the end of 2017 to 258.1m subscribers at the end of 2023, according to a new study from the IoT analyst firm Berg Insight. Moreover, the company forecasts that shipments of embedded car OEM telematics systems worldwide will grow from 26.8m units in 2017 to reach 67.2m units in 2023.
Connected car services have evolved from being a differentiating factor to a common feature, with a high uptake among premium car brands, and an increasingly rapid uptake in mid-range vehicles. GM’s OnStar was launched 20 years ago and is the current global market leader, with more than 14m users in total by the end of 2017, of which 12.3m were in N. America.
BMW includes telematics hardware as a standard feature on all its cars sold in 45 markets worldwide and has the second largest user base of an estimated 8m equipped vehicles. PSA Group is currently in third place with 2.9m connected vehicles in Europe. The carmaker launched an emergency and assistance call service in 2003. Other automotive OEMs with over 2m telematics subscribers include Hyundai, Mercedes-Benz, Toyota/Lexus and FCA Group.
“There are several connected car services that experience growing demand from stakeholders including consumers, car manufacturers, governments and various third parties as awareness of the value of telematics spreads”, said Martin Svegander, IoT analyst at Berg Insight. “Recently, we have also seen GM, Jaguar Land Rover and Hyundai launch in-vehicle commerce platforms that create opportunities for retailers and merchants to connect with consumers.”