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@ThingsExpo Authors: Yeshim Deniz, Elizabeth White, Carmen Gonzalez, Robin Miller, Liz McMillan

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OEM and Aftermarket Telematics Expected to Surpass 40% of Cellular M2M Connections by 2017, Says ABI Research

In the latest analysis by ABI Research, OEM Telematics and Aftermarket Telematics will be dominant sectors for cellular M2M connections, growing to over 40% connection share. This in a market where cellular M2M connections will grow by double-digits regardless of application category. By 2019, over 600 million connections will reside on cellular networks.

Says Dan Shey, practice director, “Vehicles are being targeted on two fronts for cellular connectivity. OEMs are embedding cellular to both add safety, convenience, and infotainment features, but also to improve maintainability and most importantly to avoid recalls. Insurance companies are implementing cellular connectivity typically as an aftermarket product for user-based insurance and stolen vehicle tracking services. Cellular connections enable tremendous value for both markets which are still relatively underpenetrated.”

The growing dominance of these two verticals will cause advanced metering infrastructure and remote monitoring and control to slip out of the top market share positions for cellular connections.

LTE connections are still a small share of total connections. Even the recent introduction of lower cost LTE single-mode devices is not expected to boost LTE connections appreciably through the forecast period. Global LTE coverage is not sufficient for many OEMs wishing to differentiate products based on cellular. GSM standard 2G and 3G connections will maintain the lion’s share of connections through 2019.

These findings are part of ABI Research’s M2M Services and Modules Market Research (https://www.abiresearch.com/market-research/service/m2m-modules/), which includes Research Analyses, Market Data, Insights, and Competitive Assessments. Cellular connection and revenue forecasts are provided across 20 country and region segments, 11 application categories, and 8 air interface categories.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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