Every new car will be connected to mobile network by 2025

In its latest research, GSMA is looking at the impact of embedded mobile technology on the automobile industry. According to them, this technology is poised to revolutionize the motoring experience, helping create a connected car market worth almost 40 billion EUR globally in 2018, up from 13 billion EUR in 2012.

The research firm SBD forecasts 32.6 billion EUR in revenues (83% of the total) that will be driven by the growth of embedding SIM technology into new vehicles to enable mobile connectivity. This in turn will encourage a range of mobile-based services around safety, security, infotainment, traffic information, navigation and vehicle diagnostics. Moreover, it is suggested that most, if not all, new cars will have some form of connectivity by 2025.

European Commission’s regulation will also play an important role — the eCall in-vehicle emergency call services will be required in all new car models in member states from 2015.

The new technology brings along associated revenues, with in-vehicle services like traffic information, call centre support and web-based entertainment poised to reach 24.5 billion EUR. Sales of hardware such as telematics control units will hit 6.9 billion EUR, while delivery of telematics services and provision of connectivity (mobile data) will reach 4.5 and 4.1 billion EUR, respectively.

Safety and security will be the most common services supported by connected cars, shipping in 41.7 million vehicles globally in 2018. In-car infotainment services are expected to be supported by 32.1 million cars, while navigation services will ship in 28.5 million cars in 2018. Finally, vehicle management applications, including remote diagnostics and maintenance, will be supported by 14.8 million cars.

Here you can get more information about the GSMA’s mAutomotive programme, and from here you’ll get details on SBD’s forecasts.

By Dusan Belic from Intomobile 18/6/13