Friday, March 29, 2013

17.6 million consumers to subscribe embedded connected vehicle services by 2017

According to new research from Parks Associates, 17.6 million consumers will subscribe to embedded connected vehicle services, such as General Motors’ OnStar and Chrysler’s UConnect Access, by 2017. Connected cars are a significant area for consumer-based M2M growth. The international research firm predicts 47% of all new vehicles sold in the U.S. will have embedded cellular modules by 2017.

Parks Associates’ new report M2M: The Next Billion Mobile Connections examines the early market for M2M deployments in the consumer markets where multiple devices exchange data without manual human intervention, including connected cars, e-readers such as Amazon’s Kindle, and wireless health devices.

The consumer-facing aspect of the M2M auto industry started with the launch of GM’s OnStar service in 1996. Auto companies like Ford and Nissan have relied on smartphones for other connected services but are now rolling out embedded modules in electric car models to provide core assistance and navigation services, including performance and diagnostics information and remote control of the vehicle’s locks, horn, and temperature remotely.

Parks Associates Analyst Jennifer Kent, said: “Mobile network operators (MNOs) such as Verizon, AT&T, and T-Mobile see M2M as a way to diversify their revenues and secure a strong foothold in this early market, particularly in the auto industry. MNOs can leverage their relationships with module manufacturers, app developers, and consumers to provide auto OEMs with valuable integration services, thereby generating service revenues on top of network access fees.”

“The M2M market for consumers has seen steady growth over the past decade and is shaping up for a bright future. Declining sensor and networking costs, increased interest from MNOs, expanding use cases, and new business models are converging to drive the M2M industry forward. To reach the next stage, industry players are pushing beyond the custom, proprietary nature of the M2M industry and establishing M2M models that enable interoperability and scalability,” Kent added.

“M2M: The Next Billion Mobile Connections” examines this growing market and the impact of MNOs’ resources, scale, and marketing power as they pursue consumer-facing M2M initiatives.

From the article, "17.6 million consumers to subscribe embedded connected vehicle services by 2017."

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