The quest for Telematics 4.0

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Providing in-car connectivity is going to be essential for every carmaker, but the industry is still looking for viable business models.

The global telematics market is poised to grow exponentially in the future, with approximately 104 million new cars expected to have some form of connectivity by 2025:

  • Penetration of global integrated telematics to touch 88% for new cars by 2025, while that of tethered telematics to flatten around 28%
  • Penetration of integrated telematics to be driven by growing importance of smartphones and regulations for driver safety
  • US to continue its lead with sales of approximately 16 million new cars with embedded telematics by 2025
  • EU, Japan and BRIC nations present huge potential, primarily due to upcoming regulations

"When we look at the car, we see another smartphone."

— President, global telecommunications company

Evolution of automative telemetics

Evolution of automative telemetics

Source: 2025 Every Car Connected: Forecasting the Growth andOpportunity study, by SBD and GSMA, published in 2012

Our Global Automotive, Telecom and Insurance Centers have developed this telematics blueprint with the aim of:

  • Defining the telematics ecosystem and its components, including market needs, services, infrastructure and stakeholders
  • Identifying commercially viable business strategies and the associated risks, rewards and considerations for stakeholders
  • Evaluating the position and future role of the automotive, telecom and insurance sectors in this emerging ecosystem
  • Analyzing differences in telematics strategies across the ecosystem through business model case studies

"Soon you will not be able to make money anymore with cars that don't integrate customers' smartphones."

— CEO, premium global carmaker

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