While 4G networks would be preferred by automakers to power the connected car, it is 3G networks that will carry the data driving the majority of its global telematics and infotainment services revenues, according to ABI Research. In fact, ABI Research said that it will be after 2020 that 4G becomes the leading connection technology for OEM telematics revenues. It is typical for verticals with long product lifecycles, such as automotive, to show delayed uptake of next generation technologies, such as 4G, due to slower penetration into the installed vehicle base, said ABI Research.
ABI Research's VP and IoT Practice Director, Dan Shey, however said that, "There are exceptions. For instance, in the United States, Japan and Korea, 4G will lead revenue generation. But interestingly it will take until 2018 and into 2019 for 4G to carry the majority of the data traffic driving OEM telematics revenues. In India, 2G will stay the dominant telematics network carrier for the next 5 years; China’s revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020."
According to the research firm, today, professional services including hardware and software integration, consultancy, and project management generate the majority of global IoT supplier revenues. But by 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead. Data and analytics revenues will also become a major revenue generator later in the forecast period exceeding connection, security and network services revenues, added ABI Research.
