Global revenue from automotive telematics systems will grow at a CAGR of more than 19 percent to $4.2 billion by the end of 2021, according to new forecasts from IHS. These forecasts are driven by continued innovation in vehicle connectivity and safety technologies, and project nearly $2.8 billion in additional annual revenue by the end of the forecast period in 2021, compared to 2015, said IHS.
According to IHS, consumer electronics-based (CE) solutions will make up nearly 30 percent of the market, leaving only about 15 percent of embedded systems in 2021, the IHS Automotive forecasts say. Additionally, hybrid telematics will boast the strongest revenue CAGR at more than 12 percent from 2015 – to 55 percent of the overall market.
IHS added that currently CE telematics leads the global automotive telematics market since it is a relatively low-cost solution and is available in a wide range of vehicles.
IHS projects that hybrid telematics to dominate in the global telematics market after 2018. The eCall mandate, effective March 2018, will require an embedded connection in vehicles for automatic crash notification (ACN) and SOS calling, which forces all OEMs to offer either embedded or hybrid telematics in Europe.
Anna Buettner, Manager for Infotainment at IHS Automotive
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.
