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Connected Car Service Providers to Reap $17B in 2018 as GM, BMW, Tesla and Others Ramp Smart Apps

Market research firm Infonetics Research released excerpts from its new Connected Car M2M Connections and Services market size and forecasts report, which focuses on the telecom-related services available for automotive applications, fleet management, and telematics, as well as the business models and trends that are driving the connected car machine-to-machine (M2M) market.

ANALYST NOTE

“Unlike the smart grid vertical, which favors 2G technology to keep usage cheap, or connected cameras, which require at least 3G and ideally 4G technology for good quality, the connected car vertical is able to make use of every generation of cellular technology available. This means that just about any communications service provider, whether they have 2G, 3G, 4G, LTE or a combination of technologies, can find a niche in the connected car space,” says Godfrey Chua, directing analyst for M2M and the Internet of Things (IoT) at Infonetics Research.

Chua adds: “Next-gen 3G and 4G technologies are paving the way for improved interactivity, video, real-time analytics, and other smart apps in the connected car space—and thus a greater probability for service adoption. LTE will be the fastest-growing cellular technology in cars, expanding 135% annually between 2014 and 2018. A major boon will come from AT&T’s agreement with GM to deploy LTE for the OnStar service.”

CONNECTED CAR REPORT HIGHLIGHTS

  • In an effort to differentiate their vehicles, major auto manufacturers including GM, BMW, and Tesla are making significant investments in connected car programs; the result is growing partnerships between leading M2M service providers like AT&T and China Mobile and automotive brands
  • Some service providers are seeing as much as 90% of their machine-to-machine (M2M) revenue generated from the connected car segment
  • North America is the foundation of the global connected car business, accounting for 37% of global service revenue in 2013; Europe and Asia will be fast-growing regions
    • With sizeable auto markets and large land areas, countries like the U.S. and China are ideal for connected vehicle services
  • Infonetics expects revenue derived by service providers for the connectivity and other basic value-added services they provide to the automotive, transport, and logistics (a.k.a. connected car) segment to more than triple from 2013 to 2018, to $16.9 billion worldwide
  • The connected car services market is growing at a 2013–2018 compound annual growth rate (CAGR) of 25%, nearly 21 times the growth rate expected for traditional mobile voice and data services during the same time period

INFONETICS IS HIRING

Infonetics Research is hiring an M2M and Internet of Things analyst, Account Director for EMEA and India, research and market analysts, and audience development people. See job openings at http://www.infonetics.com/jobopp.asp.

M2M CONNECTED CAR REPORT SYNOPSIS

Infonetics' annual connected car M2M connections and services report provides worldwide and regional market size, forecasts through 2018, analysis, and trends for connected car M2M connections by technology (GSM/GPRS/EDGE, CDMA2000/EV-DO, W-CDMA/HSPA, LTE, TD-SCDMA, other WAN wireless, PAN wireless, wireline). Automotive manufacturer connected car programs tracked: Audi, BMW, Ford, GM, Tesla, Mercedes Benz, Toyota, and Volvo. M2M service providers and specialist MVNOs tracked: Aeris Communications, AT&T, China Mobile, China Unicom, Deutsche Telekom, Kore Telematics, Numerex, Orange, Raco Wireless, Telefónica, Telenor, Sprint, Verizon, and Vodafone.

The report also includes select service provider announcements with updates on activity by equipment manufacturers including Audi, Hyundai, and Tesla. Service providers noted include Deutsche Telekom, KPN, NTT docomo, Raco Wireless, Telefónica, TeliaSonera, and Verizon. To buy the report, contact Infonetics: www.infonetics.com/contact.asp.

RELATED REPORT EXCERPTS

INFONETICS WEBINARS

Visit www.infonetics.com/infonetics-events to register for upcoming webinars, view recent webinars on-demand, or learn about sponsoring a webinar.

  • Shifting to the Cloud: Managing Next-Gen WLANs (July 22: Attend)
  • Coherent Optics: Cheaper, Better, Faster (July 24: Attend)
  • Respond Faster to Security Events and Breaches (July 29: Attend)
  • The Role of Service Delivery Platforms in M2M and IoT (View on-demand)
  • How Connected Cars Drive Revenue for M2M Service Providers (Sponsor)

TO BUY REPORTS, CONTACT:

N. America (West), Asia Pacific: Larry Howard [email protected] +1 408-583-3335

N.A. (East, Midwest), L. America, EMEA: Scott Coyne [email protected] +1 408-583-3395

Greater China, SE Asia, India: 大中华区 Jeffrey Song [email protected] +86 21-3919-8505

Japan 日本 Takashi Kimura, TAK Analytics [email protected] +81 3-6408-5566

South Korea 대한민국 Doug Moon, MBAP [email protected] +82 2-3453-9400

ABOUT INFONETICS

Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides.

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