Connected car M2M connections and services in the US: Key market research findings
- Demand for analytic solutions in the automotive sectors spurs market growth
- The connected car M2M OEM segment accounts for a majority of the market’s revenue
- Key vendors – Audi Connect, BMW, Gemalto, GM, Sierra Wireless, and Verizon Telematics
Technavio’s market research analysts predict the connected car M2M connections and services market in the US to reach around $51 billion by 2020. The growth in the market is fueled primarily by the growing demand for analytics in the automotive industry. Many automobile, technology, and big data analytics companies are collaborating to understand vehicle performance, analyze automotive businesses, and connect with their customers to improve brand loyalty and efficiency. Data analytics software can be used to analyze vehicle and driver performance. These solutions enable the early detection of problems and safe rescue of the passenger in cases of emergencies.
The new market research report from Technavio presents a breakdown and analysis of the connected car M2M connections and services segments based on the usage.
“Autonomous vehicles are gaining a lot of traction in the market currently. Autonomous vehicles with secure social, economic, and mobility-related benefits are one of the breakthrough innovations in the automotive industry. Even though sophisticated autonomous or unmanned vehicles are already in existence, these vehicles are yet to be commercialized. Several automobile manufacturers are conducting pilot tests to launch fully automated, driverless cars in the market,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research.
The connected car M2M OEM segment dominated the connected car M2M connections and services market in the US in 2015 with a market share of around 70%. The increased focus toward advanced value-added services is the fundamental driving force behind growth in this segment. Manufacturers in the market are inclined toward providing value added services attached to vehicles to create product differentiation. These value added services are also used as a marketing tool to target new customers and retain existing customers to achieve high brand loyalty.
The key vendors in the market include Audi Connect, BMW, Gemalto, GM, Sierra Wireless, and Verizon Telematics. The connected car M2M connections and services market in the US is witnessing fierce competition due to the presence of several well-established global and regional vendors. With telecommunications companies, telematics providers, automobile companies, chip makers, and technology providers exploring the market, the competition among the suppliers is likely to intensify in the coming years. The market has seen numerous M&A over the past few years. Also, the vendors are collaborating to utilize their resources mutually and are offering innovative products to their customers to improve product differentiation.
A more detailed analysis is available in the Technavio report, Connected Car M2M Connections and Services Market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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