|[July 28, 2014]
OEM and Aftermarket Telematics Expected to Surpass 40% of Cellular M2M Connections by 2017, Says ABI Research
OYSTER BAY, N.Y. --(Business Wire)--
In the latest analysis by ABI Research (News - Alert), OEM Telematics and Aftermarket
Telematics will be dominant sectors for cellular M2M connections,
growing to over 40% connection share. This in a market where cellular
M2M connections will grow by double-digits regardless of application
category. By 2019, over 600 million connections will reside on cellular
Says Dan Shey (News - Alert), practice director, "Vehicles are being targeted on two
fronts for cellular connectivity. OEMs are embedding cellular to both
add safety, convenience, and infotainment features, but also to improve
maintainability and most importantly to avoid recalls. Insurance
companies are implementing cellular connectivity typically as an
aftermarket product for user-based insurance and stolen vehicle tracking
services. Cellular connections enable tremendous value for both markets
which are still relatively underpenetrated."
The growing dominance of these two verticals will cause advanced
metering infrastructure and remote monitoring and control to slip out of
the top market share positions for cellular connections.
TE connections are still a small share of total connections. Even the
recent introduction of lower cost LTE (News - Alert) single-mode devices is not
expected to boost LTE connections appreciably through the forecast
period. Global LTE coverage is not sufficient for many OEMs wishing to
differentiate products based on cellular. GSM standard 2G and 3G
connections will maintain the lion's share of connections through 2019.
These findings are part of ABI Research's M2M
Services and Modules Market Research (https://www.abiresearch.com/market-research/service/m2m-modules/),
which includes Research Analyses, Market Data, Insights, and Competitive
Assessments. Cellular connection and revenue forecasts are provided
across 20 country and region segments, 11 application categories, and 8
air interface categories.
ABI Research provides in-depth analysis and quantitative forecasting of
trends in global connectivity and other emerging technologies. 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. For more information visit www.abiresearch.com,
or call +1.516.624.2500.
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