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Connected Car Service Providers to Reap $17B in 2018 as GM, BMW, Tesla and Others Ramp Smart Apps
|By Business Wire
|July 16, 2014 02:08 PM EDT
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.
“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
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
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
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
to register for upcoming
webinars, view recent webinars
on-demand, or learn about sponsoring
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
How Connected Cars Drive Revenue for M2M Service Providers (Sponsor)
TO BUY REPORTS, CONTACT:
N. America (West), Asia Pacific: Larry Howard [email protected]
N.A. (East, Midwest), L. America, EMEA: Scott Coyne [email protected]
Greater China, SE Asia, India: 大中华区 Jeffrey Song [email protected]
Japan 日本 Takashi Kimura, TAK Analytics [email protected]
South Korea 대한민국 Doug Moon, MBAP [email protected]
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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