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Embedded Car OEM Telematics Subscribers to Reach 340 Million Worldwide by 2024
December 16, 2019 | Berg InsightEstimated reading time: 2 minutes

According to a new research report from the IoT analyst firm Berg Insight, the number of telematics service subscribers using embedded systems will grow at a compound annual growth rate (CAGR) of 27.1 percent from 80.4 million subscribers at the end of 2018 to 339.3 million subscribers at the end of 2024. Moreover, Berg Insight forecasts that shipments of embedded car OEM telematics systems worldwide will grow from 34.0 million units in 2018 to reach 75.4 million units in 2024, which represents an attach rate of 82.0 percent.
Connected car services have evolved from being a differentiating factor to a common feature with a high attach rate among the premium car brands and are rapidly becoming increasingly common in mid-range vehicles. GM’s OnStar was launched more than 20 years ago and is today the market leader worldwide with approximately 20.0 million users in total, out of which more than 16.0 million were in North America by year-end 2018. BMW has the second largest user base of an estimated 10.0 million connected vehicles. Mercedes-Benz currently ranks third as Mercedes Me Connect is now available in more than 45 countries and recently launched in the US, Canada, Australia, Thailand and New Zealand. PSA Group is also a leading carmaker with 4.8 million connected vehicles in Europe via Peugeot, Citroën and DS. The carmaker launched an emergency and assistance call service already in 2003. Additional automotive OEMs with over 3 million telematics subscribers also include Volkswagen, Hyundai and FCA Group.
“The automotive OEM telematics value chain spans multiple industries including automotive suppliers, telematics service providers (TSPs), carmakers, telecom industry players, as well as software and content providers”, said Martin Svegander, IoT Analyst at Berg Insight. TSPs are facing increasing competition from OEM insourcing and new players such as cloud service providers and other automotive suppliers. Today, TSPs such as WirelessCar and Sirius XM Connected Vehicle Services have increased their focus on delivering a portfolio of cloud-based services that can be combined to fulfil the automaker’s needs. The major cloud service providers are investing heavily in their connected car offerings and are keen on working with car OEMs. For mobile operators positioning themselves in the cellular IoT market, the OEM embedded telematics market is highly important. Moreover, IoT managed service providers have during the past few years partnered with automotive OEMs to offer global connectivity solutions. “The current structure of the connected car value chain has remained largely unchanged during the past few years. However, new players which enable carmakers to explore ways to utilise the connected car data and develop new services have emerged during the past few years”, Mr. Svegander added.
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