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Connected cars: worldwide trends and forecasts 2013–2025

Connected cars: worldwide trends and forecasts 2013–2025

Market Study
Published: November 2016
Pages: 46 slides
Research from: Analysys Mason
Sector: Networks & Infrastructure

From: GBP 5714.00
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Connectivity revenue from embedded and aftermarket applications will represent 54% of total cellular M2M connectivity revenue by 2025 – USD12 billion. The connected car market will be key to cellular M2M revenue generation for many mobile network operators (MNOs).

This report provides:

  • in-depth analysis of embedded and aftermarket growth scenarios
  • numbers of embedded, aftermarket and tethered connections during 2013–2025
  • embedded and aftermarket connectivity revenue during 2013–2025
  • regional analysis of the connected car market
  • data for 74 country markets in the data annex.

Regions

 

Key metrics

  • Central and Eastern Europe (CEE)
  • Developed Asia–Pacific (DVAP)
  • Emerging Asia–Pacific (EMAP)
  • Latin America (LATAM)
  • Middle East and North Africa (MENA)
  • North America (NA)
  • Sub-Saharan Africa (SSA)
  • Western Europe (WE)

 

  • Connected car device connections
  • Connected car connectivity-related average revenue per connection (ARPC)
  • Connected car connectivity-related revenue
  • Three types of connectivity within the Automotive sector
    • Aftermarket
    • Embedded
    • Tethered

Worldwide: The percentage of new cars sold with embedded connections will increase dramatically, reaching 94% in 2025

 

The percentage of new cars sold with embedded connectivity will increase rapidly between 2016 and 2021. Penetration of all connected car solutions will reach 54% worldwide by 2025.

 

The increase in the percentage of new cars sold with embedded connectivity will be driven by a number of factors, including those detailed below.

 

Legislation, including eCall in Europe and ERA-Glonass in Russia, will mandate connectivity to provide emergency service alerts and improve safety. All new models of cars sold in the EU will have eCall capability from March 2018.

Vehicle manufacturers are deploying connectivity to reduce warranty costs, enhance their products and engage with customers. They are also differentiating their products through acquisitions. For example, a consortium of BMW, Daimler and VW (Audi) acquired Nokia’s mapping service Here, which was already widely used by vehicle manufacturers.

 

Some uncertainty remains regarding consumer willingness to pay for connectivity, but awareness of the services and benefits available is slowly growing.

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