Integrated telematics systems are in vogue

Mountain insight

September 27, 2024, 6:25 am | Iris Stroh

Growth forecast for integrated telematics systems

Three out of four cars sold in 2023 were equipped with integrated telematics systems – this proportion is expected to continue to rise in the next few years.

According to a new research report from IoT analyst firm Berg Insight, the number of subscribers to telematics services using embedded systems will grow at a compound growth rate (CAGR) of 14.6 percent from 239.7 million subscribers at the end of 2023 to 473.8 million subscribers in increase in 2028.

Global shipments of embedded OEM vehicle telematics systems are expected to increase from 59.3 million units in 2023 to 82.9 million units in 2028, representing a 94 percent connect rate at the end of the forecast period. In 2023, this value was still around 75 percent worldwide. New registrations of passenger cars and light commercial vehicles rose worldwide by 11.6 percent to 79.3 million in 2023. The market grew for the second year in a row, reaching pre-pandemic levels. Berg Insight expects high growth in OEM telematics subscribers in the next few years as connected car services become ubiquitous in all major automotive markets.

Automakers are gradually focusing on incorporating third-party apps into infotainment systems, giving drivers access to the same apps they have on their smartphones. Smartphone mirroring solutions like Android Auto and Apple CarPlay were one way to incorporate third-party apps. However, automakers are increasingly focusing on enabling access to the apps directly from the vehicle’s infotainment system, without the need for a smartphone connection. Some automakers are even considering removing support for Android Auto, Apple CarPlay and other smartphone mirroring solutions to take control of the connected driving experience. “Automakers are focusing on improving the digital driving experience through the use of connected car services, which are becoming increasingly important in customers’ purchasing decisions,” continued Cederqvist.

Toyota Motor Group had more than 23 million connected cars at the end of 2023. General Motors and BMW each had more than 20 million connected vehicles at the same time. Stellantis and Ford make up the remaining top five automakers in terms of embedded OEM telematics participants. Other automotive OEMs with more than 13 million actively connected cars at the end of 2023 include Volkswagen, Mercedes-Benz and Hyundai. “Connected vehicle deliveries in mature markets are expected to grow in line with new vehicle sales as the connectivity rate of embedded telematics systems will reach nearly 100 percent in the future,” concluded Cederqvist.