According to ABI Research (Oyster Bay, N.Y., U.S.A.), a marketing research firm, the installed base of embedded OEMs and Aftermarket connected car systems is expected to grow from 41 million at the end of 2011 to 189 million by 2016.
“Despite all the hype about hybrid and smartphone-based telematics solutions, embedded connected car systems still have a bright future,” said Dominique Bonte, telematics and navigation group director at ABI Research. “On the OEM side, solutions such as GM’s OnStar and Hyundai’s Blue Link offer more reliable safety and security functionality such as emergency calling. Similarly, embedded aftermarket systems for insurance telematics, road user charging, or stolen vehicle tracking offer the best performance. Finally, electric vehicles simply require embedded connectivity in order to remotely check battery charging status, which has even prompted Ford to abandon its hybrid approach in the Ford Focus Electric.”
However, car OEMs and Tier One suppliers are still facing multiple challenges in designing cost-effective, upgradeable, and easy-to-use embedded solutions and bringing them to the market rapidly, according to ABI Research. While vendors such as Continental, Saab, SAIC Roewe and the GENIVI consortium are concentrating on open source operating systems such as Android and Linux, others such as Toyota are looking to adopt cloud-based systems to achieve cost and scalability advantages.
As the industry continues to gain momentum automotive OEMs need to develop a solid connected car strategy as an absolute priority in order to retain control over the user experience, safety, and monetization opportunities of next generation vehicles, according to ABI Research.