Connected car M2M connections and services in the UK: Key market research findings
- Advancements in the telematics industry to drive market growth
- Increase in the adoption of V2X technology
- Key vendors – Audi Connect, BMW, British Telecom, Gemalto, and GM
Technavio’s market research analysts predict the connected car M2M connections and services market in the UK to surpass $8 billion by 2020. The demand for connected car M2M connections and services is augmented by advancements in embedded telematics solutions. Wireless connectivity demand by the car occupants and the increasing need of the auto manufacturers to connect to the digital car services wirelessly are factors that will influence the growth of the telematics industry over the next decade. Advancements in technology are triggering an increase in the demand for premium telematics solutions that include navigation, infotainment, and vehicle to vehicle communication. During 2015, the connected car M2M connections market in the UK had 30 million connected car connections and is projected to reach around 130 million shipment units by 2020.
The new market research report from Technavio presents a breakdown and analysis of the connected car M2M connections and services segments based on the application.
“There is an ongoing rise in the deployment of V2X technology in the market currently. V2X technology enables the vehicle to communicate with any entity or infrastructure through the Internet. With this technology, the vehicle can connect with other vehicles that have connected devices, vehicle management system providers, smart parking solutions installed in a locality, on road sensors for turning and speed breakers,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
The safety and driving assistance segment accounted for around 65% of the market share in 2015 to become the dominant shareholder in the connected car M2M connections and services market in the UK. Safety and security features include the ability to contact emergency services, receive vehicle diagnostics and directions, and track stolen vehicles. The demand for more secure services is spurred by the threat of hackers gaining access to a cloud connected vehicle to steal personal content. In the UK, vehicle manufacturers are increasingly deploying secured cloud to ensure network security and reliable information transfer.
The key vendors in the market include Audi Connect, BMW, British Telecom, Gemalto, and GM. The connected car M2M connections and services market in the UK is highly competitive due to the presence of several well-established international, regional, and local vendors. With telecommunications companies, telematics providers, automobile companies, chip makers, and technology providers exploring the market, the level of competition among the suppliers is likely to intensify in the coming years.
A more detailed analysis is available in the Technavio report, Connected Car M2m Connections and Services Market in the UK 2016-2020.
We can customize reports by other regions and specific segments upon request.
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