Safety and security telematics to be installed in 1 in 7 cars shipping globally in 2013, says ABI Research

ABI Research ABI Research

London, UK – With infotainment functionality such as music streaming, connected navigation, and social networking having dominated much of the connected car market in 2011 and 2012, traditional safety and security telematics is expected to make a comeback in 2013 due to growing awareness about its importance from consumers and governments alike. Penetration of factory-installed safety and security telematics shipping globally in new cars will reach 15.7% in 2013.

“Mandates for stolen vehicle tracking in Brazil (CONTRAN) and emergency calling in Russia (ERA GLONASS) are finally becoming a reality in 2013. And the EU’s eCall is being prepared for launch in 2015,” says VP and practice director Dominique Bonte.

Increasingly, however, the telematics industry is shifting from reactive solutions, to systems that can help avoid and prevent safety and security hazards:

* Driver behaviour monitoring improving driving skills, reducing the risk of accidents
* Insurance telematics/Usage-Based Insurance (UBI) as an incentive for safer driving, and
* Preventive maintenance and prognostics avoiding break downs and reducing repair costs.

ABI says original equipment manufacturers (OEMs) and dealerships are increasingly looking at telematics as a customer relationship management tool (CRM) to enhance the car experience, piece of mind of car ownership, and ultimately build a more loyal customer base. In this respect, remote diagnostics and – in the future – remote updates are the core features around which the automotive industry is going to transform into a service industry.

ABI Research’s new Safety and Security Telematics market database offers quantitative insight into the OEM, aftermarket, and converged safety and security telematics environment. Associated forecast data include subscribers, service revenue, hardware shipments, and revenue, where applicable. Additional data such as penetration rates, a comparison of OEM offerings, and their vendor relationships are also provided by region. It is part of ABI’s Safety and Security Telematics, Automotive Technologies,and Safe Cities Research Services.

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