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Car telematics shipments to reach 8.44 crore by 2016

Posted: 07 Dec 2009     Print Version  Bookmark and Share

Keywords:automotive market  telematics system  car electronics 

Market watcher iSuppli Corp. predicts that global shipments of automotive telematics systems are set to rise to 8.44 crore (84.4 million) units in 2016, up by a factor of more than four from 1.93 crore (19.3 million) in 2008.

"From sending out an automatic distress call after a car crash, to enabling remote diagnosis of engine troubles, telematics can provide enormous benefits to motorists and car makers around the world," said Anna Buettner, analyst with iSuppli's automotive research service. "For drivers, telematics can enhance safety, convenience and connectivity. For car OEMs, telematics can add to and improve car functionality and reduce warranty and after-sales costs. That's why carmakers and consumers are expected to increase their adoption of telematics systems rapidly during the next seven years."

By 2016, 6.84 crore (68.4 million) cars will ship with telematics systems installed by OEMs, up from 1.43 crore (14.3 million) in 2008. This means that 84.6 per cent of all cars shipped in 2016 will incorporate telematics systems.

Aftermarket shipments of telematics systems will rise to just under 1.6 crore (16 million) units in 2016, up from slightly less than fifty lakh (five million) in 2008.

Telematics refers to the solutions and applications built on top of information content flowing via wireless communication to and/or from the auto.

Beyond accident alerts and remote diagnosis, telematics functions span from the wireless integration of third-party devices, to navigation and location-based services (LBS) updates, to theft detection, to engine control software revisions.

Telematics offers a range of benefits to car makers. For example, remote diagnostics—i.e., the capability to remotely monitor vehicle conditions—has the potential to save automakers millions of dollars over the long term. Furthermore, carmakers can charge for some telematics services, opening a new revenue stream.

Worldwide OEM and Aftermarket Automotive Telematics Systems Sales

Growth in regions
The United States is the world's leading market for telematics in 2009, with 30 per cent of all models sold in the country available with installed systems. In comparison, the next two biggest telematics nations, Germany and Italy, have only 20 per cent model availability of installed telematics systems.

The U.S. leadership is due to General Motors, which pioneered installed telematics in 1996 with its OnStar service. The company has made OnStar a standard feature on all its cars this year.

"With GM selling twenty lakhs (two million) cars with installed telematics per year, competitors have been forced to react," Buettner said. "In the intervening years, Ford, BMW, Mercedes-Benz, Honda, Nissan and Toyota all launched telematics systems."

Western European telematics volume remains low because no major OEM in the region has made the feature standard on every car. Japan also is deploying telematics in low volumes, and the applications are focused on navigation functionality and infotainment. However, as telematics becomes more available in other regions, U.S. domination will dwindle. The United States in 2009 accounts for about half of the global installed OEM telematics market. By 2016, the United States will account for about one third of the worldwide market as shipments in other regions soar.

Two major types of telematics solutions are being offered on the market: embedded systems, whose functionality is integrated into the headunit of cars; and mobile-device oriented systems, which use a wireless product like a cell phone to communicate information.

Both embedded and mobile device telematics systems are on rapid growth paths. Worldwide OEM embedded telematics systems will grow from nearly 48 lakhs (4.8 million) units in 2008 to more than 2.68 crore (26.8 million) systems in 2016.

Meanwhile, global OEM mobile device telematics systems will grow from 95 lakhs (9.5 million) units in 2008 to more than 4.15 crore (41.5 million) systems in 2016.

For more statistics and forecasts, click here

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