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News : China's Telematics Services Market Shows Rapid Growth
Boston, MA, USA, Oct. 21, 2015 -- Strategy Analytics' latest report, China's Telematics Service Provider Landscape, profiles six major companies in this market, illustrating the opportunities in the market and the challenges they face as the market grows and automotive OEMs in China seek more control over their respective telematics platforms. Topics covered include each telematics service provider's (TSP's) business-scope, licenses and key findings about their products, capabilities, and OEM customers.
TSPs located in China profiled in this report include China TSP, Verizon Telematics China, Shanghai OnStar, PATEO, TimaNetworks, and YESWAY. TSPs in this market face a rapidly changing marketplace.
"As control of system architecture and protocols move to the OEM, TSPs will have less opportunity to act as end-to-end telematics solution providers or even as telematics system integrators," said Kevin Li, senior analyst, Strategy Analytics' Automotive Infotainment & Telematics service. "Only companies with value-added segments outside of these core telematics platform areas may still be able to offer services to OEMs, such as call center operation or content provision."
This rapid growth is fuelled by automotive OEMs' desire to offer a wide range of connected services to vehicle buyers in China via embedded cellular connections.
"According to Strategy Analytics' analysis, 30% of the new cars sold in China's market will ship with embedded modems in 2018," said Richard Robinson, Service Director for Strategy Analytics' Automotive Infotainment & Telematics Service. "This percentage will continue to increase as many OEMs plan to ship 100% of their vehicles with embedded modems, including BMW, Cadillac, and Lexus. An attach rate of 30% means that just over 8 million passenger cars in China will be connected via embedded modem by 2018."
Posted by Veronica Silva Cusi, news correspondent
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About Strategy Analytics:
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.
Published: Friday, October 23, 2015