Telematics revenues expected to soar
Global revenue from automotive telematics systems will grow to $4.2bn by 2021, according to new forecasts from IHS Automotive.
These forecasts are driven by continued innovation in vehicle connectivity and safety technologies. Data from the IHS Automotive Telematics Forecasts represents production of telematics systems, including embedded, consumer electronics and hybrid telematics (those that include both consumer electronics and embedded technology).
Consumer electronics-based (CE) solutions will make up nearly 30 per cent of the market, leaving only about 15 per cent of embedded systems in 2021, IHS Automotive forecasts say. Additionally, hybrid telematics will boast the strongest revenue growth, jumping from 12 per cent of the market last year to 55 per cent.
Anna Buettner, manager for infotainment at IHS Automotive, said, ‘The telematics supply chain will see amazing growth and innovation through the end of the decade, as more vehicles debut new connected solutions that make use of embedded modules, while at the same time enabling consumers to fully leverage their mobile devices.
‘There are opportunities in vehicle segments that traditionally didn’t offer connectivity, but due to market demand and the imminent roll-out of eCall in Europe, the avenues are opening up quickly. Autonomous driving applications will further drive the demand for non-stop, reliable connectivity.’
Global production volumes for all telematics systems are estimated to grow by more than 112 per cent over the forecast period, surpassing 55 million units in 2021. In China, overall volume is expected to grow because original equipment manufacturers (OEMs) are continuing to add embedded and CE-based solutions, while regional vehicle sales also increase. Meanwhile, telematics systems production will triple in Europe in order to meet demand as eCall is rolled out in all new vehicles in the market starting in spring of 2018.