Will your phone get tethered?

Juniper research have just published their report Telematics and Smart Vehicles  (and you can also, after registration, download their white paper Telematics –The Route Ahead).

They estimate that by 2016 over 92 million vehicles will have internet connectivity. A significant driver of this growth is likely to be the almost standard integration of smartphones into vehicle dashboards to enable M2M (machine  to machine) communication.

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Obviously the market will include commercial vehicles as well as cars. Allegedly there are now over 1 billion cars on the worlds highways and new car registrations (as per the graphic) are around the 60 million a year level. The UK figure is circa 2 million.

On the smartphone front the worldwide installed base is likely over a billion (about  20% of all mobiles handsets in use are reckoned to be smartphones) and last years sales were around ½ a billion. Compound growth rate forecasts of 20% or more are not uncommon. Kantar reckon that 50% of us Brits already own a smartphone.  On this basis we feel the demand could be even greater than Juniper’s forecast.

Telematics, on the car front, currently really break down into infotainment and insurance (including stolen vehicle recovery).

Infotainment systems such as BMW’s ConnectedDrive, Chevrolet’s MyLink, Ford’s Sync AppLink, GM’s IntelliLink, Hyundai’s Blue Link and Toyota’s Entune already exist (as well we’re sure as many others). They certainly show the future.

As a taster here’s a Chevrolet MyLink demo.

On the insurance front there are already some UK policies involving monitoring and tracker devices eg:

  •  Aimed at younger drivers “The iKube  unit uses GPS technology in order to transmit a signal to advise us (iKube) if the vehicle is driven between the hours of 11pm and 5am.”
  • The AA’s drivesafe  which monitors driving habits, has crash breakdown and theft alerts as well as a tracker facility. This service likely fits in nicely with the EU e Call project.

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It’s no surprise to us that “Juniper research forecast that smartphone tethering will generate global revenues of $909 million during the final forecast year 2016, with the most substantial rises in revenues during 2014, 2015 and 2016″. We think it could be greater & sooner.



Telematics even has its own online news and (predictably) a Detroit conference coming up in June – so lets get tethered!

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