Proving the Business Case for the Internet of Things

Vehicle telematics to account for 40% of cellular M2M by 2017: ABI

Iain Morris
July 30, 2014
Telematics technologies used to support a range of in-vehicle services will account for as much as 40% of cellular M2M connections by 2017, according to the latest data from ABI Research.

The market research company notes that overall cellular M2M connections will grow to more than 600 million connections by 2019.

“Vehicles are being targeted on two fronts for cellular connectivity,” said Dan Shey, practice director with ABI. “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,” he added. “Cellular connections enable tremendous value for both markets which are still relatively underpenetrated.”

ABI says the growing dominance of these telematics verticals will cause advanced metering infrastructure and remote monitoring and control to slip out of the top market share positions for cellular connections.

It also notes that LTE connections still form only a small share of total connections, with the recent introduction of lower-cost LTE single-mode devices not expected to boost LTE connections appreciably over the forecast period.

Global LTE coverage remains inadequate for many OEMs wishing to differentiate products on the basis of cellular, says ABI, and 2G and 3G technologies will maintain the lion’s share of connections between now and 2019.
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