Embedded car telematics market to see 19% CAGR over the next 5 years

Embedded Telematics Vehicle

Fin is a former junior editor at TechForge.

The number of telematics service subscribers using embedded systems is expected to grow at a compound annual growth rate (CAGR) of 19 percent from 133 million subscribers at the end of 2020 to 377 million by the end of 2026.

The latest research from IoT analyst firm Berg Insight, the report also forecasts that global shipments of embedded car OEM telematics systems will grow from 41 million to 77 million units in the same time period, which represents an attach rate of 91 percent.

Whilst the Covid-19 pandemic had a significant impact on car sales in 2020, with new passenger car and light truck registrations declining by 15 percent, Berg Insight still expects high growth rates for OEM telematics subscribers in the coming years. Key reasons for this include the waning of the global semiconductor shortage and the rising ubiquity of connected car services across all major regional markets.

Berg Insight estimates that 62 percent of all cars sold worldwide in 2020 were equipped with OEM embedded telematics. Example applications for telematics include eCall and roadside assistance, stolen vehicle tracking, connected navigation, infotainment, Wi-Fi hotspots, and in-vehicle payments.

Martin Svegander, senior analyst at Berg Insight, said: “Connected car services have evolved from being a differentiating factor to a common feature with a high attach rate in Europe, North America and Asia-Pacific.”

General Motors had more than 22.0 million connected cars at the end of 2020 and BMW had about 14.5 million connected cars. Toyota Motor Group, Mercedes-Benz and Volkswagen make up the rest of the top five carmakers in terms of embedded OEM telematics subscribers.

In terms of embedded OEM telematics, General Motors had the most connected cars at the end of 2020 with 22 million, followed by BMW with 14.5 million. Toyota, Mercedes-Benz, and Volkswagen all follow suit in that order.

“The top five carmakers account for about half of the world’s embedded telematics subscribers,” added Svegander.

Want to find out about digital twins from executives and thought leaders in this space? Find out more about the Digital Twin World event, taking place on 9 November 2021, which will explore augmenting business outcomes in more depth and the industries that will benefit.

Tags: , , , , , ,

View Comments
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *