The 10th edition of the Global Automotive OEM Telematics Market report has been published, with the main takeaway being that half a billion cars are expected to have embedded OEM telematics systems by 2029.
Virtually all of the world’s leading carmakers have launched mass-market services in key regions today. The research estimates that 79% of all new cars sold worldwide in 2024 were equipped with an OEM-embedded telematics system, up from 75% in 2023, says Business Wire.
The eCall mandate in EU27+EFTA+UK has accelerated the adoption of telematics, making it a standard feature in nearly all new cars sold in the region in 2024. By 2025, the attach rate in EU27+EFTA+UK is expected to reach 100 percent, up from 97 percent in 2024. North America is an advanced market in terms of premium telematics services with an attach rate of about 93 percent. In China, the attach rate reached 84 percent in 2024. Other developed markets include Russia and CIS, Japan and South Korea
In other regions, says the Research & Markets report, the attach rate is still around 30-40 percent. Since many volume brands such as Toyota, GM, Stellantis, Ford, Volkswagen, Hyundai, Honda and Nissan now offer connected services for free in their main markets, they will constitute a large part of the growth of connected car subscriptions in the coming years. Premium brands such as BMW, Mercedes-Benz and Audi have offered telematics services as a standard feature across models and geographies for more than a decade and have a considerable number of subscribers.
Other major car brands offering embedded telematics on a broad scale include Kia, Tesla, Renault, Geely, BYD, Volvo Cars, Mazda, JLR, SAIC, GWM, Chery, Subaru, Porsche, Lexus and Changan Motors. Relatively newly founded brands in China such as Leapmotor, Li Auto and NIO also offer embedded telematics services. The research estimates that total shipments of embedded OEM telematics systems reached 64.5 million units worldwide in 2024. Growing at a compound annual growth rate of 4.9 percent, shipments are expected to reach 82.1 million units in 2029. During the same time, the attach rate of embedded telematics units is forecasted to increase from about 79 percent in 2024 to 93 percent in 2029.
The number of embedded telematics subscriptions is forecasted to grow at a compound annual growth rate of 13% from 286.6 million in 2024 to 528.1 million in 2029. Car manufacturers rely on services provided by mobile network operators, MVNOs, connectivity management platform providers and telematics service providers. Mobile operators and MVNOs such as AT&T, Vodafone, China Unicom, China Mobile, KDDI, Deutsche Telekom, Orange, Verizon, Cubic and NTT are leading connectivity providers in the automotive segment. Connectivity management platforms is also an important part of the connected car ecosystem enabling features such as provisioning, subscription management, cost monitoring and event management. Leading connectivity management platforms players in the automotive industry include Cisco, Aeris, Airlinq and Lolo Company.
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(Pic: Research & Markets)
