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.


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.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
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.
Choosing controllers: PLCs, PACs, IPCs, DCS? What's best for your application?; Wireless trends; Design, integration; Manufacturing Day; Product Exclusive
Variable speed drives: Smooth, efficient, electrically quite motion control; Process control upgrades; Mobile intelligence; Product finalists: Vote now; Product Exclusives
Machine design tips: Pneumatic or electric; Software upgrades; Ethernet advantages; Additive manufacturing; Engineering Leaders; Product exclusives: PLC, HMI, IO
This article collection contains the 5 most referenced articles on improving the use of PID.
Learn how Industry 4.0 adds supply chain efficiency, optimizes pricing, improves quality, and more.

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

Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security