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OEM, Aftermarket Telematics Expected To Surpass 40 Percent Of Cellular M2M Connections By 2017, Says ABI Research

By 2019, more than 600 million connections will reside on cellular networks.


OYSTER BAY, N.Y. – In the latest analysis by ABI Research, OEM Telematics and Aftermarket Telematics will be dominant sectors for cellular M2M connections, growing to more than 40 percent connection share. This in a market where cellular M2M connections will grow by double-digits regardless of application category, according to ABI. By 2019, more than 600 million connections will reside on cellular networks.
“Vehicles are being targeted on two fronts for cellular connectivity," says Dan Shey, practice director, ABI. "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 under-penetrated.”
The growing dominance of these two verticals will cause advanced metering infrastructure and remote monitoring and control to slip out of the top market share positions for cellular connections, ABI says.
LTE connections are still a small share of total connections. Even the recent introduction of lower cost LTE single-mode devices is not expected to boost LTE connections appreciably through the forecast period. Global LTE coverage is not sufficient for many OEMs wishing to differentiate products based on cellular. GSM standard 2G and 3G connections will maintain the lion’s share of connections through 2019.
These findings are part of ABI Research’s M2M Services and Modules Market Research. Cellular connection and revenue forecasts are provided across 20 country and region segments, 11 application categories and eight air interface categories.

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