The in-vehicle telematics market in China is booming right now, according to IMS Research, but the next few years will be critical for future development of the market.
There are three main types of telematics systems in China – standalone systems like GM’s OnStar, embedded systems such as Toyota’s G-Book, and connected systems like Ford’s SYNC. Connected systems are the newest in the Chinese market, but they are forecast to grow more quickly than standalone or embedded systems due to their relatively low cost and the bridge they offer to connect smart phones to cars, which younger drivers value highly.
i.MX processors deliver infotainment/telematics system processing for more than 10 automotive OEMs
Freescale Semiconductor announced that GM has selected Freescale’s i.MX 6Solo as the primary processing engine for the next generation of GM’s OnStar telematics system. OnStar has used Freescale processors for 15 years.
Freescale said the security capabilities of the i.MX 6Solo were key to its selection. As the era of connected intelligence boosts the volume of data flowing into and out of automobiles, processors that help protect the security of data are increasingly vital.
ABI Research said BMW AG ranks at the top of ABI’s Vendor Matrix, an evaluation of worldwide OEM telematics vendors. Ford (Ford Sync) and General Motors (GM OnStar) claimed the second and third spots.
The Vendor Matrix is an analytical tool developed by ABI Research to provide a clear understanding of vendors’ positions in specific markets. Vendors are assessed on the important parameters of “innovation” and “implementation” across several criteria unique to each vendor matrix.
The market for factory-fitted telematics systems has been growing steadily over the last decade but a recent report from IMS Research finds that this market is about to enter a new and more dynamic growth phase.
The report, “The World Market for OE In-Vehicle Telematics Systems,” forecasts that all major manufacturers will sell an increasing proportion of their vehicles with these systems during the next decade. Globally, the percentage of new vehicles fitted with telematics is forecast to grow from 9% in 2009 to 46% in 2017. However, the types of telematics system offered and the applications they provide will differ greatly between manufacturers.
By Ralf Hug
Ralf Hug has in-depth telematics marketing and management experience with automakers and telematics service providers
It’s commonly accepted wisdom in the automotive industry that telematics technology is reliable and ready to market. For evidence, consider GM OnStar, Mercedes-Benz mbrace, Toyota Safety Connect/Enform, BMW Assist, or the Ford SYNC system. Automakers only have to develop a convincing business case, and they are good to go.
But unfortunately it is not quite that easy. Based on my experience managing telematics programs for car companies and service providers, I believe that telematics is less a business case issue than an organizational design challenge.