According to Juniper Research, the worldwide revenue for consumer and commercial telematics market is expected to reach $20 billion by 2018.
The research firm states that the telematics market revenue will include soft revenues from segments such as car servicing, big data enabled by telematics, and enhanced customer service. Further, soft revenues will continue to be the mainstay of future connected- cars market as automotive manufacturers will be able to generate revenues throughout the lifetime of the vehicle, rather than just at the point of sale.
However, for the consumer telematics industry, soft revenues will remain a major untapped revenue source, meanwhile SIM mandation will drive new revenue streams for the industry. Juniper Research states that regulators in key markets, particularly in Europe and Latin America are moving towards making the inclusion of SIMs in all new vehicles mandatory. The move is expected to help original equipment manufacturers to develop revenue streams around the embedded SIM model.
Juniper Research expects split billing to play an increasingly important role in the growth of telematics industry. According to the research firm, the ability to split the telematics bill, by operators and systems integrators is likely to have a positive impact on the telematics market. For example, granular billing for infotainment and other services will pave the way for new business models. The research firm underlines that the usage of 4G is growing for telematics and infotainment services in developed markets such as North America and Europe, despite a higher module cost.
In addition, Juniper Research underlines that application integration into the vehicle through smartphone-tethering and direct integration into the head-unit will be accelerated by the launch of services like Apple?s in-vehicle offering CarPlay. In-vehicle applications, majority of which will be available free of cost will witness encouraging adoption over the next five years. Going forward, smartphone-tethering and in-vehicle applications will drive down the price of vehicle manufacturers? own embedded infotainment services.
