ABI Research analysis indicates that OEM and Aftermarket Telematics will become dominant sectors for cellular M2M connections, growing to at least a 40 percent connection.
As OEM and Aftermarket Telematics become dominant, advanced metering infrastructure and remote monitoring and control are expected to lose their positions as top market share for cellular connections.
“Vehicles are being targeted on two fronts for cellular connectivity,” said Dan Shey, practice director. “OEMs are embedding cellular to both add safety, convenience, and infotainment features, but also to improve maintainability and most importantly to avoid recalls. Insurance companies are implementing cellular connectivity typically as an aftermarket product for user-based insurance and stolen vehicle tracking services. Cellular connections enable tremendous value for both markets which are still relatively underpenetrated.”
This forward-looking analysis indicates that more than 600 million connections will reside on cellular networks by 2019. Though LTE single-mode devices have become less expensive, GSM standard 2G and 3G connections will maintain the majority of connections through 2019.
