Telematics the Winner in BEV Boom

An expected boom in the uptake of EVs will boost the importance of telematics services and lead to greater collaboration between providers and automakers.

That’s among the findings of analysis by Frost & Sullivan that suggests connectivity solutions like telematics are expected to track the expected growth to about 30M EVs by 2025. It points to new telematics systems from Hyundai’s Ioniq and Kia’s Niro that already provide vehicle charging information, charging station locations, charger availability and connection compatibility.

The new 4G Long-Term Evolution (LTE) is opening up additional opportunities by enabling remote services, over-the-air (OTA) updates and advanced diagnostics. The number of connected cars with embedded telematics is predicted to increase from 23M in 2018 to 65M in 2025.

Frost & Sullivan’s Analysis of Embedded Telematics in the Automotive Industry, Forecast to 2025 considers the strategies, competitive landscape, business models and future focus areas of automakers, telematics service providers and technology companies. The company’s mobility research analyst, Anubhav Grover, said: “With the rising popularity of connected services among fleet owners, telematics has become a key differentiator for OEMs. Telematics is also helping OEMs strengthen their brand, converting one-time sales into ongoing service-centered relationships. For instance, Honda has launched its SmartCharge Beta Program, which integrates a vehicle telematics system with the city grid, thus providing users with incentives to charge their EVs when the electricity demand is low.

“With greater vehicle autonomy and vehicle-to-vehicle (V2V) connectivity, participants have evolved from being mere telematics service providers to being technology innovation partners. Furthermore, with connected cars generating greater volumes of data, OEMs/data aggregators will need to transform from a subscription model to a customized pricing- and revenue-sharing model.”

— Paul Myles is a seasoned automotive journalist based in London. Follow him on Twitter @Paulmyles_

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