OEM telematics market in China to shine as aftermarket struggles

Shipments of OEM telematics systems in China are projected to be more than 10 million units in 2019, 13 times bigger than the number of units shipped in 2012.

09/27/2012


IMS Research (IHS, Inc.)The total market size of original equipment manufacturer (OEM) in-vehicle telematics systems is quite small in China right now; however, IMS Research (recently acquired by IHS, Inc.) forecasts it will grow dramatically over the next decade. In contrast, the aftermarket for in-vehicle telematics systems is not projected to develop significantly during that period, according to a recently published IMS Research report named "The Chinese Market for In-Vehicle Telematics Systems - 2012".

Shipments of OEM telematics systems in China are projected to be more than 10 million units in 2019, 13 times bigger than the number of units shipped in 2012. In addition to the pioneer products in the Chinese market like GM's OnStar, Toyota's G-Book and Nissan's CARWINGS, more and more vehicle manufacturers, both multinational and domestic, are planning to launch their own telematics systems within the next two years.

“We see that most companies involved in the supply chain of the OEM telematics market are very optimistic about the future potential. From the perspective of a market research provider, we feel the same way.” commented Michael Liu, senior market analyst with IMS Research’s Automotive and Transport Group. “However, it doesn’t mean that there is no risk in the market. A less successful scenario could happen if there are no successful, profitable business models in the market; there are very few truly useful and attractive telematics services in the market; most telematics services can be catered for by drivers’ smartphones; and for safety reasons the Chinese government enacts regulations during the forecast period to restrict in-vehicle communications such as making phone calls and accessing the internet.”

By comparison, the aftermarket for in-vehicle telematics systems in China is forecast to struggle. One big challenge is the service fee. People really don’t want to pay extra money for services they already have on their smart phones, such as navigation and internet access. In addition, most aftermarket products cannot provide security related telematics functions. This is thought unlikely to change in the future since it will be very hard for aftermarket telematics system suppliers to gain support from vehicle manufacturers.



No comments
The Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Controller programming; Safety networks; Enclosure design; Power quality; Safety integrity levels; Increasing process efficiency
Additive manufacturing benefits; HMI and sensor tips; System integrator advice; Innovations from the industry
Robotic safety, collaboration, standards; DCS migration tips; IT/OT convergence; 2017 Control Engineering Salary and Career Survey
Featured articles highlight technologies that enable the Industrial Internet of Things, IIoT-related products and strategies to get data more easily to the user.
This article collection contains several articles on how automation and controls are helping human-machine interface (HMI) hardware and software advance.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Infrastructure for natural gas expansion; Artificial lift methods; Disruptive technology and fugitive gas emissions
Mobility as the means to offshore innovation; Preventing another Deepwater Horizon; ROVs as subsea robots; SCADA and the radio spectrum
Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me