Car OEM Telematics Leads IoT Segments, Generates $60B of Service Revenues in 2020
September 22, 2015 | ABI ResearchEstimated reading time: 2 minutes

While 4G networks would be preferred by automakers to power the connected car, it is 3G networks that will carry the data driving the majority of its global telematics and infotainment services revenues. In fact, it will be after 2020 that 4G becomes the leading connection technology for OEM telematics revenues. It is typical for verticals with long product lifecycles, such as automotive, to show delayed uptake of next generation technologies, such as 4G, due to slower penetration into the installed vehicle base. Similar cellular technology adoption data for over 30 of the largest IoT application segments can be found in ABI Research’s recently launched IoT Market Tracker.
VP and IoT Practice Director, Dan Shey comments, “There are exceptions. For instance, in the United States, Japan and Korea, 4G will lead revenue generation. But interestingly it will take until 2018 and into 2019 for 4G to carry the majority of the data traffic driving OEM telematics revenues. In India, 2G will stay the dominant telematics network carrier for the next 5 years; China’s revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020.”
The types of supply chain services generating connected car revenues are equally diverse and highly country dependent. Today, professional services including hardware and software integration, consultancy, and project management generate the majority of global IoT supplier revenues. But by 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead. Data and analytics revenues will also become a major revenue generator later in the forecast period exceeding connection, security and network services revenues.
VP and Automotive Practice Director, Dominique Bonte comments, “By 2020, the connected car supply chain will start seeing some dramatic shifts, which are reflected in the changing revenue ratios between the different service categories in ABI Research’s IoT Market Tracker. Open source hardware reference platforms, third party mobile ecosystem integration, and the shift towards cloud-based approaches will start eating into traditional Tier 1 professional service revenues, forcing vendors such as Harman, Bosch and Continental to move into new areas and competences including data analytics, OTA and security monitoring services.
The IoT Market Tracker provides connections and services revenues for 2G, 3G, 4G, fixed line and satellite connections across 32 application segments, 30 industry verticals and 4 size of business segments covering 18 separate countries and regions. It is part of ABI Research’s IoE coverage, which includes Research Reports, Market Data, Insights, and Competitive Assessments.
About ABI Research
ABI Research provides technology market research and technology intelligence for industry innovators. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990.
Suggested Items
Kyocera Licenses Quadric’s Chimera GPNPU AI Processor IP
05/08/2025 | BUSINESS WIREQuadric announced that Kyocera Document Solutions Inc. (hereinafter: Kyocera) has licensed the Chimera™ general purpose neural processor (GPNPU) intellectual property (IP) core for use in next generation office automation system on-chip (SoC) designs.
Scanfil Boosts Investment in Electronics Manufacturing in the US
05/08/2025 | BUSINESS WIREScanfil is investing in a second electronics manufacturing line in Atlanta, Georgia, USA. The demand for manufacturing electronics in the USA has increased over the past two years and is expected to continue growing.
Cybord's Visual AI Solution to Be Integrated with Siemens' Opcenter MES
05/07/2025 | PRNewswireCybord, a leading provider of advanced visual-AI electronic component analytics, and Siemens Digital Industries Software have signed a new OEM agreement to integrate Cybord's cutting-edge AI technology with Siemens' Opcenter™ software for Manufacturing Execution Systems (MES).
SEL Announces 2025-2026 Scholarship Recipients
05/07/2025 | Schweitzer Engineering LaboratoriesSchweitzer Engineering Laboratories (SEL) is pleased to announce the latest recipients of the SEL Scholarship Program for the 2025-2026 academic year. This year, SEL has awarded 15 scholarships, each valued at $5,000, to exceptional students pursuing degrees in engineering and applied technology.
Baker Hughes' Waygate Unveils Nanotom HR for Advanced Inspection
05/06/2025 | Baker HughesWaygate Technologies, a Baker Hughes business and global leader in nondestructive testing (NDT) solutions for industrial inspection, unveiled its new extremely high-resolution computed tomography (CT) system, Phoenix Nanotom® HR (High Resolution) at the Control 2025 show in Stuttgart, Germany.