OEM and Aftermarket Telematics using cellular M2M will dominate market shares

OEM and Aftermarket Telematics using a cellular M2M will dominate market shares The most recent study reveals that OEM and Aftermarket Telematics are two segments that will dominate the cellular M2M communications market, growing to an overwhelming 40% of the shares in 2017. In this market, cellular M2M connections are expected to develop by twofold irrespective of what application category. And by 2019, it is expected to expand exponentially to over 600 million connections with these devices operating on cellular networks, all according to ABI Research, who provided a cellular connectivity and revenue forecast that included 20 nations and region segments, 11 application categories and 8 air-interface categories.

In its mission to provide the latest in-depth and quantitative analysis and forecast on trends revolving on global connectivity and emerging markets and technologies, ABI Research highlights that the developing strengths of these verticals in cellular M2M telematics can noticeably bring down improved metering foundations, as well as remote monitoring and control from the top rank of the industry's market share.

"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 Practice Director at ABI Research, Dan Shey explained.

In addition, he pointed out that the growth in cellular M2M will most likely result from more states banning non-hands-free mobile devices from being used on the road. The amount of unconnected driving time is a possible time, business or client lost, particularly for professionals who rely on connectivity in their vehicles. Meanwhile, LTE will remain underrepresented in terms of total connection shares even with the introduction of low-cost LTE single-mode devices. ABI Research states that LTE is not probable to be commonly adapted to the consumer market. The report further noted that 2G and 3G connections will still dominate the market through 2019. This may partially be a result of the increase of 3G deployments in developing markets all over the world.