OEM and Telematics Expected to Surpass 40% of M2M Connections by 2019
Published on: 29th Jul 2014
OEM Telematics and Aftermarket Telematics will be dominant sectors for cellular M2M connections, growing to over 40% connection share, according to ABI Research. This in a market where cellular M2M connections will grow by double digits regardless of application category. By 2019, over 600 million connections will reside on cellular networks.
Says Dan Shey, practice director, "Vehicles are being targeted on two fronts for cellular connectivity. OEMs are embedding cellular to both add safety, convenience, and infotainment features, but also to improve maintainability and most importantly to avoid recalls. Insurance companies are implementing cellular connectivity typically as an aftermarket product for user-based insurance and stolen vehicle tracking services. Cellular connections enable tremendous value for both markets which are still relatively underpenetrated."
The growing dominance of these two verticals will cause advanced metering infrastructure and remote monitoring and control to slip out of the top market share positions for cellular connections.
LTE connections are still a small share of total connections. Even the recent introduction of lower cost LTE single-mode devices is not expected to boost LTE connections appreciably through the forecast period. Global LTE coverage is not sufficient for many OEMs wishing to differentiate products based on cellular. GSM standard 2G and 3G connections will maintain the lion's share of connections through 2019.