Disruption – Potential opportunity worth USD 119 Bn is expected to open up in Connected Mobility and Telematics value chain, owing to the developments in autopilot, data monetization, government regulations, and aftermarket channels. As per the sources, >90% of cars will be connected by 2026, creating huge revenue opportunities for OEMs, ISPs, TSPs, software developers, etc. With advanced ADAS, connectivity, the number of ECUs is expected to grow to 150-200. This would create opportunities for hardware suppliers, semiconductor manufacturers.
According to MarketsandMarkets
analysis,
- Adoption of electrification and telematics and stringent emission standards is expected to pave the way for connected vehicles and Mobility-as-a-Service in the coming years.
- Connected mobility and telematics industry is expected to showcase a revenue of USD 16-18 Bn by 2025, ~60% of which is expected to come from light duty vehicles.
- Connected car market is estimated to showcase a potential of USD 53-55 Bn by 2026, driven by safety regulatory standards, autonomous vehicles, and emergence of 5g infrastructure, etc.
- Insurance and diagnostics services are expected to hold significant potential in the connected car market.
Unknowns & Adjacencies
Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas –
- What will be the role of connected infrastructure in electric and autonomous cars development?
- How connected cars would impact the demand for sensors & electronics – cameras, radars, LiDAR’s, ECUs?
- How connectivity in cars would drive the adoption of telematics insurance/UBI in the coming years?
- How growing electrification in off-highway industry will impact the adoption of connectivity in the off-highway industry?
- What potential does data monetization market hold as the penetration of connected cars is expected to reach more than 90% globally by 2026?
- How developments in high-speed trains create revenue pockets for connected and telematics service providers in railway industry?
Some of the growth problems encountered by connected mobility and telematics companies are:
Customer prioritization and assessing unmet needs:
- What are the disruptions in our clients’ businesses? How can we support them for our own growth?
- Who are the most potential customers expected to be benefitted going forward- OEMs, ISPs, TSPs, data centers, etc.?
- What are the key unmet needs of customers? Who are the key stakeholders in different settings? Which new solutions/services that are expected to witness higher adoption in the coming years?
Where to play:
- Which applications areas should we focus on? Should it be on-/off- highway/locomotives etc.?
- Which regions should we place our bets on? Should we continue with developed countries or do developing countries offer more growth opportunities?
Building a compelling Right-to-Win (RTW):
- For M&A, which are the right targets for us? Should we target OEM or aftermarket platforms for connected car solutions/services? Should we enter new markets directly or through partners?
- How can we differentiate from top players? What is their right-to-win vs ours?
Key uncertainties/perspectives which industry leaders seek answers to:
For connected mobility and telematics companies:
- Which are the most promising telematics services in on- & off-highway segments in the coming years?
- What will be the impact of increasing investments in high-speed rails on adopting telematics in railways?
- How would automotive telematics impact the insurance industry for estimating insurance premiums and analyzing driver behavior?
- Why is fleet management gaining popularity among heavy-duty/off-duty vehicles over light-duty vehicles?
- Which telematics services would showcase the highest demand in L4/L5 autonomous vehicles?
- What would be the acceptance of services like EV charging station maps, remote diagnostics, etc., in the future?
For Companies in Adjacent markets:
- How would the growing connected car market impact the V2X market in the coming years?
- How will the insurance services market see a successive increase with the growth of MaaS as more vehicles will be integrated and connected in the near future?
- How the automotive sensors market value will be impacted by the increasing adoption of automation/connectivity in automobiles?
- How will connected car software development companies get benefitted from increasing penetration of connected cars globally?
- How will data centers /OEMs manage the huge amount of data generated by connected cars for storage/analysis/refinement etc.?
- How will data centers /OEMs manage the huge amount of data generated by connected cars for storage/analysis/refinement etc.?
Therefore, MarketsandMarkets research and analysis focuses on high growth and niche markets, which will become ~80% of the revenues of the automotive players in the next 5-6 years.
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