Welcome!

News Feed Item

Frost & Sullivan: Explosion of OEMs' Investments in Automotive Connected Services in Brazil and Mexico

Combined telematics subscriber base in both countries to reach over 1.6 million by 2020

SAO PAULO, Aug. 11, 2014 /PRNewswire/ -- Brazil and Mexico have a strong and well-developed automotive aftermarket, with service providers (SPs) offering stolen vehicle tracking (SVT), monitoring and immobilization solutions. However, passenger vehicle original equipment manufacturers (OEMs) are looking to go beyond the existing basic service offerings to create new revenue streams and boost their presence in these countries. Connected services are expected to play a vital role towards brand differentiation and maintaining market share in an increasingly competitive automotive market.

(Photo: http://photos.prnewswire.com/prnh/20140811/135074)

New analysis from Frost & Sullivan, Strategic Analysis of the Automotive Connected Services Market in Brazil and Mexico, finds that the total number of telematics service subscribers in Brazil will go up from 4,800 in 2013 to nearly 1,300,000 in 2020. Mexico's telematics subscriber base, on the other hand, will grow from 2,000 in 2013 to approximately 330,000 in 2020. By the end of the forecast period, automotive connected services is expected to penetrate between 26 to 28 percent of new cars sales in Brazil and approximately 23 to 25 percent of new cars sold in Mexico. The study covers automotive connected services offered by vehicle OEMs and independent aftermarket solutions.

"In Mexico, the provision of automotive connected services in vehicles from General Motors, and the expected introduction of these services by other premium vehicle OEMs, will propel the market," said Frost & Sullivan Automotive & Transportation Industry Analyst Yeswant Abhimanyu. "Likewise, the market in Brazil will expand as more vehicle OEMs venture towards offering telematics services."

However, the high cost of vehicles in markets such as Brazil could dampen sales volumes, considering that over 60 percent of cars sold are from the price-sensitive A- and B- segments. Also, since purchasing vehicle insurance is not mandatory in Brazil, insurance-coupled telematics services might not find much acceptance among cost-conscious customers. As customers begin to realize the value of insurance in the event of car theft and other situations, insurance-coupled telematics offerings will grow in popularity.

The continued delay in the implementation of the Conselho Nacional de Transito (CONTRAN) 245 mandate that requires the installation of anti-theft equipment in all new vehicles in Brazil is also understood to be slowing market development. In light of the different possible scenarios, vehicle OEMs and other participants along the value chain are unsure whether to introduce telematics services just yet. This, along with a debate regarding the right mix of automotive connected services to offer customers, is slowing market introduction and current potential.

"Partnerships among vehicle OEMs and SPs are expected to pave the way for the advancement of the automotive connected services market in Brazil. While vehicle OEMs can take advantage of the bandwidth and scope that SVT and immobilization service providers have in the country, the SPs can move towards complete, high-end telematics service providers (TSPs)," noted Abhimanyu. "Vehicle OEMs might even extend their partnerships to hardware manufacturers and other value chain participants, using innovation and flexibility as key decision-making criteria to choose appropriate partners."

SPs across Mexico could also consider partnering with vehicle OEMs to broaden their service offerings and thereby attract more customers. Focus should lie in providing advanced telematics services such as turn-by-turn navigation and automatic crash response.

Strategic Analysis of the Automotive Connected Services Market in Brazil and Mexico is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. A complementing study, Voice of the Consumer (End Consumers – Car Owners) that looks at the consumer's willingness to pay for connected services, the features of interest, and the effects of the smartphones, is also in progress.

For more information on this and related studies, please email Francesca Valente, Corporate Communications, at [email protected].

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Strategic Analysis of the Automotive Connected Services Market in Brazil and Mexico
NB81-18

Contact:
Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: [email protected]

http://www.frost.com

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Kubernetes is an open source system for automating deployment, scaling, and management of containerized applications. Kubernetes was originally built by Google, leveraging years of experience with managing container workloads, and is now a Cloud Native Compute Foundation (CNCF) project. Kubernetes has been widely adopted by the community, supported on all major public and private cloud providers, and is gaining rapid adoption in enterprises. However, Kubernetes may seem intimidating and complex ...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"As we've gone out into the public cloud we've seen that over time we may have lost a few things - we've lost control, we've given up cost to a certain extent, and then security, flexibility," explained Steve Conner, VP of Sales at Cloudistics,in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Peak 10 is a hybrid infrastructure provider across the nation. We are in the thick of things when it comes to hybrid IT," explained , Chief Technology Officer at Peak 10, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.