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Intelligent Vehicles to Return Revenues of Over $14bn by 2016

Intelligent vehicles, through embedded connectivity, will be directly responsible for creating revenues of $14.4 billion by 2016, as existing telematics players extend to new geographical markets and expand their service models in the next five years, finds a new report from Juniper Research.

New Telematics units that can be installed once the vehicle is on the road from players like OnStar will give the market a second wind, finds the report. Meanwhile the range of subscription services on offer is becoming more comprehensive says Juniper Research.

“Intelligent vehicles can now come equipped with features including safety, security, navigation and emergency service access under the same subscription,” says Anthony Cox, the report’s author, noting that targeted services for insurance and stolen vehicle recovery are also gaining momentum through regional players. For most telematics areas, however, the US is ahead of other geographical regions finds, the report.

Further findings from the Telematics and Smart Vehicles report include:  

• The integration of the smartphone into consumer vehicles will become all but standard on new models by 2016 due to new protocols such as MirrorLink from the Connected Car Consortium
• By 2016 there will be 92 million internet-connected vehicles on the road, featuring technology to integrate the smartphone into the head-unit.
• Commercial telematics  is seeing sustained take-up, driven by its promise of increasing driver efficiency and managing costs

In the commercial telematics market, Juniper Research observes an increasing level of sophistication as fleet managers use telematics to increase fleet efficiency, comply with regulation and monitor driver behaviour. Players are also leveraging the power of the cloud and internet portals to enhance the service they offer.

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