Fast getaway for the connected car market
According to its new report 'M2M: The Next Billion Mobile Connections' by 2017, 17.6 million consumers will subscribe to embedded connected vehicle services such as General Motors' OnStar and Chrysler's UConnect Access.
The research firm says nearly half (47 per cent) of all new vehicles sold in the U.S. will have embedded cellular modules by 2017.
According to Parks Associates analyst Jennifer Kent, the connected car will enable MNOs can leverage their relationships with module manufacturers, app developers, and consumers to provide auto OEMs with valuable integration services, thereby generating service revenues on top of network access fees.
"Mobile network operators (MNOs) such as Verizon, AT&T, and T-Mobile see M2M as a way to diversify their revenues and secure a strong foothold in this early market, particularly in the auto industry," says Kent.
She says that while auto companies like Ford and Nissan have relied on smartphones, they are now rolling out embedded modules in electric car models to provide core assistance and navigation services, including performance and diagnostics information and remote control of the vehicle's locks, horn, and temperature remotely. "