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Global embedded telematics increasingly appearing in new vehicles

Market intelligence firm ABI Research ( finds the penetration of embedded telematics in new vehicles will increase from 13.4% in 2014 to 52% in 2020.

“While penetration levels of embedded connectivity in vehicles continue to grow steadily, it remains challenging for car OEMs to convince users to pay for built-in connected car services,” says says vice president and practice director, Dominique Bonte. “While initiatives such as allowing adding connected car systems to shared data plans by GM in the United States are definitely going to boost uptake, full penetration is unlikely to be achieved solely through consumer-led drivers.”

Perceived value of safety services or in-car Wi-Fi hotspots simply aren’t big enough (yet), especially with free smartphone integration “tethering” standards such as CarPlay and Android Auto expected to become widespread in the next years, he adds. ABI Research says that built-in vehicle connectivity will only go mainstream if and when it becomes a “must have,” integral part of vehicles for new automotive paradigms not expected to fully materialize before the 2020 time horizon:

° Car sharing: remotely locating, tracking down, and unlocking of vehicles in the new sharing economy;

° Electrification: remote monitoring of electric vehicle battery status;

° Autonomous driving: real-time “electronic horizon.”

In the meantime, growth will be fueled by non-consumer drivers such as eCall and stolen vehicle mandates in Europe, Russia, and Brazil (despite repeated delays) and the use of connectivity by car OEMs for internal analytics purposes such as diagnostics, prognostics, preventive maintenance via Over the Air (OTA) updates, and product design improvements.

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