Factory-installed cars with safety and security telematics to grow with a CAGR of 34.5%

Safety telematics services remain a core component of most connected car solutions. The number of new cars shipping globally with factory-installed safety and security telematics is expected to grow from 11.5 million in 2013 to 50.8 million in 2018, with a CAGR of 34.5 percent, says a report from ABI Research.

Traditional safety and security telematics services such as eCall, bCall, stolen vehicle tracking, and remote diagnostics continue to be rolled out across the globe. Some of the services include VW’s Car-Net in the U.S., GM’s Onstar in Mexico, and a host of domestic and foreign car OEM offers recently having become available in China.

However, the high expectations surrounding telematics mandates such as the EU’s eCall, Russia’s ERA GLONASS, and Brazil’s CONTRAN stolen vehicle tracking legislation have not materialized due to successive delays, mounting uncertainty and criticism on technology choices becoming outdated, the report said.

Connected car solutions

More promising trends include the use of telematics technology for toll collect and road user charging and the quickly growing insurance telematics market.

While safety telematics services remain a core component of most connected car solutions, car OEMs such as Ford, BMW and Daimler are increasingly looking at ADAS, V2X, and various forms of autonomous driving to add additional levels of active safety functionality by focusing on collision prevention and ultimately aiming at making a zero-accident environment a reality.

Usage Based Insurance is already bridging the gap between passive and active safety via driver behavior monitoring alerts and feedback aimed at reducing driver risk.

At the same time, while connected in-car infotainment is about to become main stream, the need for security protection against cyber-attacks and intrusions becomes ever more critical and will start dominating safety and security telematics in the near future, the reprot said.

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