- There are many options available for telematics
- Availability varies by region
- Automobile owners afraid to use telematics systems
The global automotive OEM telematics market is forecasted to reach 170.2 million subscribers in 2021, according to a report from Berg Insight. Subscribers in 2015 totaled 26.5 million. The number of telematics subscribers will grow at a compound annual growth rate (CAGR) of 36.4%.
The total shipments also are expected to increase, from 14 million units in 2015 to 53 million in 2021. This represents a CAGR of 25%.
Automotive telematics include a wide range of connectivity solutions designed for passenger vehicles incorporating cellular communication.
There are several connectivity options automotive manufacturers can pick from but they are not mutually exclusive. Therefore, automakers often use several options to keep up with mobile technology and address different customer requirements.
There are three basic types: 1. Tethered devices provide connectivity through a handset or external modem while the intelligence is built into the vehicle. 2. Integrated smartphones have connectivity and intelligence built into the device. 3. Embedded systems have connectivity and intelligence built into the vehicle.
Nearly all the major automakers, with GM and BMW leading the way, have introduced telematics systems. In 2015, 18% of all new vehicles sold were equipped with an embedded telematics system.
The penetration rate varies by region. In North America, 37% of vehicles have telematics systems followed by the European Union at 20%, Japan and South Korea at 17%, China at 10% and the rest of the world at less than 10%.
Afraid to Use Telematics Systems
Despite the availability of telematics systems, 62% of Americans are frightened the systems can be easily hacked, according to a survey by Kelley Blue Book.
Their concerns are not without merit. Hackers do have the ability to hack into telematics systems and remotely take control of a variety of systems including anti-theft codes, Wi-Fi, cellular service and keyless ignitions.
Hackers gain access through the devices used to track sensor data received from connected cars. The data is transferred using mobile Internet of Things gateways that lack sophisticated security features.
German IT company Rohde & Schwarz Cybersecurity has developed a system it believes will offer mobile network operators more security.
The system creates a firewall and can be used to provide protocol and application classification of IP-based traffic.
- Telematics applications include vehicle diagnostics, roadside assistance, connected navigation and infotainment, stolen-vehicle tracking, and convenience applications.
- Convenience applications are usually offered by aftermarket service providers. These applications include finding the last parking position, heating or cooling of the passenger compartment before a trip, and remote control of vehicle functions such as door locking/unlocking.
- Russia’s ERA-GLONASS and Europe’s eCall initiative want to make automatic emergency call devices mandatory in all new cars.