US Connected Car M2M Connections Market to Grow at CAGR 17% from 2013 to 2018

AT&T at the CTIA2014 Image Credit: AT&T

The recent  "Connected Car M2M Connections and Services Market in the US 2014-2018" report at the Reports and Markets predicts the Connected Car M2M Connections and Services market in the US to grow at a CAGR of 16.92 percent from 2013 to 2018. The growth in the Connected Car M2M connections is driven by the demand for in-vehicle infotainment services by the driver and also telematics and other road/vehicle-related information services by third parties including regulators, auto-makers, insurance companies and providers of digital services.

The M2M connection in vehicles allows controlled transmission of information from the car to another device or platform from which the information can be extracted, processed and transmitted back onto fixed and mobile digital platforms accessed by end users. With the increasing number of partnerships between mobile operators who provide the 4G LTE connectivity to the cars and auto-makers, US is already taking a strong lead in the connected car segment, while other regions, specifically Asia Pacific and Europe expected to pick up in terms of new roll-outs in the next few years.

In a statement accompanying the report release, Reports and Markets said that the large number of LTE deployments worlwide are driving the partnerships between mobile operators and auto-makers, citing examples in the US such as the AT&T- GM partership to offer LTE connectivity in cars and Sierra Wireless-Verizon joint initiative on the LTE-based connected car M2M module. Reports and Markets also said that emergency services, vehicle diagnostics, accidents prevention and tracking of stolen vehicles are some of the major connectivity services expected by connected car customers in the US. It also highlighted the high cost of connected car M2M equipment and the high annual subscription fees on M2M services as some of the factors hindering a more rapid adoption of the connected car services.

Executive Editor of The Fast Mode | 5G | IoT/M2M | Telecom Strategy | Mobile Data Innovations 

Tara Neal covers stories on strategies and initiatives in the Digital Telco space, and anchors the 5G and IoT/M2M verticals on the publication. Tara holds a First Class Honours in BSc Accounting and Finance from The London School of Economics, UK and is a CFA charterholder from the CFA Institute, United States. Tara has over 20 years experience in technology and business strategy.

Follow her on Twitter @taraneal11, LinkedIn @taraneal11, Facebook or email her at


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