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Next-generation Vehicles With Long Term Evolution (LTE) Connectivity to Give Rise to Broader Service Structures Such as Over-the-air (OTA) Updates and Predictive Diagnostics
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This study analyses the strategies, competitive landscape, business models, and future focus areas of original equipment manufacturers (OEMs), telematics service providers, and technology companies in the global automotive embedded telematics services market. This study aims to analyse the telematics services market with a focus on market trends; the key trends under study include the eCall mandate and its impact; data monetisation; reconfigurable eSIM adoption; disruption within the value chain; telematics for electric vehicles; and the telematics service offerings roadmap. This research service lists the potential market opportunities for participants in the embedded telematics space and strategic imperatives for market participants to get ahead of their competition. With the eCall mandate having been put into action in 2018, passenger vehicles are expected to be connected by 2025 and the penetration of telematics is set to increase significantly. These macro factors coupled with trends, such as rising sales due to economic development, stricter regulations, and more importantly, the advent of autonomous vehicles, have driven the adoption of telematics services. With the emergence of connected services and their demand amongst fleet owners, telematics has become a key differentiator amongst OEMs. Telematics is also helping OEMs to strengthen their customer association to their brand by converting one-time sales into continual service-centred relationships. In the wake of autonomy and vehicle-to-vehicle (V2V) connectivity, telematics service providers have also evolved from only being telematics providers to technology innovation partners. They are changing their business approach to focus on innovation, rather than production.High-speed data services are a platform for telcos to offer telematics. Telcos have evolved from being powerful service providers to application and services switchboards. This puts them in the driver’s seat to manage the app-based open-platform telematics ecosystem. They see real value addition in offering data analytics and intelligence, rather than only selling vehicle-based raw data. Most top network providers initially forayed into fleet telematics by starting-off with their in-house solutions, and then expanded their portfolio and regional presence through the acquisition of prominent telematics service providers.
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