The Car and Truck Fleet and Leasing Management Magazine

12% of New Cars to Ship with Embedded Telematics

May 26, 2009

NEW YORKDespite current economic challenges, OEMs continue to enhance existing embedded and hybrid telematics services and/or launch new ones, driving global penetration rates in new cars to 12 percent in 2010 and 43 percent in 2014, according to ABI Research.

"OEM telematics is gaining momentum across the globe. With GM's OnStar and Ford's SYNC to be joined by telematics solutions from Toyota and Chrysler launching later this year, the U.S. remains the most competitive market," said ABI Research Practice Director Dominique Bonte. "At the same time, Toyota and GM will expand into the Chinese market, while government regulation in Brazil and the EU will drive uptake in Latin America, Western and Eastern Europe."

Safety and security features such as emergency calling (eCall), breakdown assistance (bCall) and remote diagnostics remain the most popular, but connected infotainment such as off-board navigation, online local search, concierge services, and Internet access offered by OEMs such as BMW are enjoying increasing interest.

While embedded aftermarket solutions offered by companies such as LoJack and OCTO Telematics remain popular in specific markets for stolen vehicle tracking and PAYD insurance, new affordable portable and converged consumer telematics are bringing features such as geofencing, speed monitoring, and basic diagnostics to a wider audience.

By offering multiple safety, cost, and entertainment benefits to different stakeholders such as governments, car manufacturers and dealers, and end-users, consumer telematics will become a standard automotive feature in developed regions by 2015, according to ABI Research.


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