Car OEM Telematics Leads IoT Segments, Generates $60B of Service Revenues in 2020September 22, 2015 | ABI Research
Estimated 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.
Lockheed Martin will soon launch a unique wideband Electronically Steerable Antenna (ESA) payload demonstrator to show the company's investment in advanced technology to perform missions faster once on orbit. The payload demonstrator, which will launch aboard Firefly Aerospace’s Alpha rocket, extends Lockheed Martin’s significant investment in scalable wideband ESA technology development to showcasing an actual on-orbit capability. This technology is critical to future remote sensing architectures.
The Cambridge Open Zettascale Lab is hosting Dawn, the UK’s fastest artificial intelligence (AI) supercomputer, which has been built by the University of Cambridge Research Computing Services, Intel and Dell Technologies.
HyRel Technologies Attains ITAR Registration, Reinforcing Leadership in Robotic Solder Component Tinning11/27/2023 | HyRel
HyRel Technologies, a global provider of quick turn semiconductor modification solutions, announces the achievement of International Traffic in Arms Regulations (ITAR) registration.
Every decade, a new telecom generation emerges, with 5G currently being commercialized, offering faster data rates, low latency, and enhanced reliability. 6G is characterized by Tbps data rates, microsecond latency, and extensive network dependability.
MDA Ltd., a leading provider of advanced technology and services to the rapidly expanding global space industry, has revealed plans to more than double its UK workforce and operational footprint over the next 12 months.