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In-Vehicle Connectivity to Propel New Growth Opportunities for OEMs in Latin America
December 5, 2016 | Frost & SullivanEstimated reading time: 1 minute
Latin America (LATAM) will have over 8.5 million connected cars on the road by 2023. Increasing in-vehicle connectivity to enable value-added services, infotainment and next-generation human-machine interface features will encourage partnerships across the value chain that offer connected solutions. This, in turn, will propel the penetration of connected car solutions and drive innovation and novel revenue streams across the region.
“The automotive value chain is looking to value-added, real-time remote services; vehicle diagnostics; emergency and crash assistance; and concierge services to influence consumer loyalty and build revenue streams,” said Frost & Sullivan Intelligent Mobility Program Manager Yeswant Abhimanyu. “Original equipment manufacturers (OEMs) are shifting to a free trial and renewal subscription business model to attract customers and edge out competition.”
"The OEM Strategies for Connected Cars in LATAM by 2023" analysis forms part of Frost & Sullivan’s Automotive & Transportation Growth Partnership Service program. This includes topics such as In-Vehicle Infotainment (IVI) systems, application interfaces and automotive application stores, human-machine interface options, safety, security and vehicle relationship management (vRM)-based telematics services, wireless technologies, cooperative systems (V2X) communication, and vehicle active/passive safety and automation.
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Smartphone 2.0, next-generation connected infotainment services focusing on smartphone mirroring, and the availability of application stores are growing trends. Volkswagen, Hyundai, GM, and Ford are examples of OEMs offering these solutions. Availability differs by country, but by 2023 these next-generation systems will reach all countries and vehicle models.
“Mobility, safety, and health, wellness and wellbeing are areas the automotive value chain should concentrate on to offer diversified, value-added solutions,” added Intelligent Mobility Industry Analyst Thales Jurado. “These sectors provide tremendous opportunities to innovate with new services, revenue streams, cost optimization, value additions, and business models.”
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. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
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