Chinese light vehicle telematics market set for rapid expansion

Although the OEM in-vehicle telematics market is still in an early phase in China, forecasts say it will soon become a billion dollar market.

07/16/2012


IHS has acquired IMS ResearchAlthough the OEM in-vehicle telematics market is still in an early phase in China right now, IMS Research (recently acquired by IHS Inc.) forecasts it will soon become a billion dollar market. According to a recently published IMS Research report named “The Chinese Market for In-Vehicle Telematics Systems - 2012,” the total market revenue is projected to reach $2.4 billion in 2019.

There have been OEM in-vehicle telematics systems in the Chinese market for a while, such as GM's OnStar system, Toyota's G-Book system and Nissan's CARWINGS system. However, in addition to these pioneers, more and more vehicle manufacturers, both multinational and domestic, are planning to launch their own telematics systems within the next two years.

Michael Liu, senior market analyst with IMS Research’s Automotive and Transport Group commented: "There are some major reasons for the promising future of this market. First, more and more telematics systems can provide real-time traffic information to drivers, which can greatly improve traffic efficiency and decrease fuel consumption, thus making driving more eco-friendly. Second, most telematics systems provide accident-assist services, which can lower down the damage and casualties caused by traffic accidents. Third, providing telematics products will be valuable to vehicle manufacturers, since it can not only improve their after-sale service quality, such as providing more convenient and frequent software updates to customers, but also help them gain lots of valuable customer information like driving habits which is valuable for their future product design and marketing.”

In addition to these reasons, driving is also forecast to become increasingly automatic in the near future with the uptake of advanced driver assistance systems, thus making it possible for drivers to spend more time safely using in-vehicle communication and entertainment. In addition, more electric vehicles (EVs) will be produced and sold in China in the future, and most EVs are forecast to be equipped with telematics systems. This is because EV drivers will need to pay more attention on how much battery charge is left or where is the closest charging station.

Considering all the above, IMS Research forecasts the fitment rate of OEM in-vehicle telematics systems will increase quickly to 34.5% in 2019, meaning one in every three light vehicles sold in China then will be equipped with these popular systems.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
Hannover Messe 2016: Taking hold of the future - Partner Country status spotlights U.S. manufacturing; Honoring manufacturing excellence: The 2015 Product of the Year Winners
Inside IIoT: How technology, strategy can improve your operation; Dry media or web scrubber?; Six steps to design a PM program
World-class manufacturing: A recipe for success: Finding the right mix for a salad dressing line; 2015 Salary Survey: Manufacturing slump dims enthusiasm
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Digital oilfields: Integrated HMI/SCADA systems enable smarter data acquisition; Real-world impact of simulation; Electric actuator technology prospers in production fields
Special report: U.S. natural gas; LNG transport technologies evolve to meet market demand; Understanding new methane regulations; Predictive maintenance for gas pipeline compressors
Warehouse winter comfort: The HTHV solution; Cooling with natural gas; Plastics industry booming
Managing automation upgrades, retrofits; Making technical, business sense; Ensuring network cyber security
Designing generator systems; Using online commissioning tools; Selective coordination best practices

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
click me