OEM telematics market in China to shine as aftermarket struggles
Shipments of OEM telematics systems in China are projected to be more than 10 million units in 2019, 13 times bigger than the number of units shipped in 2012.
The total market size of original equipment manufacturer (OEM) in-vehicle telematics systems is quite small in China right now; however, IMS Research (recently acquired by IHS, Inc.) forecasts it will grow dramatically over the next decade. In contrast, the aftermarket for in-vehicle telematics systems is not projected to develop significantly during that period, according to a recently published IMS Research report named "The Chinese Market for In-Vehicle Telematics Systems - 2012".
Shipments of OEM telematics systems in China are projected to be more than 10 million units in 2019, 13 times bigger than the number of units shipped in 2012. In addition to the pioneer products in the Chinese market like GM's OnStar, Toyota's G-Book and Nissan's CARWINGS, more and more vehicle manufacturers, both multinational and domestic, are planning to launch their own telematics systems within the next two years.
“We see that most companies involved in the supply chain of the OEM telematics market are very optimistic about the future potential. From the perspective of a market research provider, we feel the same way.” commented Michael Liu, senior market analyst with IMS Research’s Automotive and Transport Group. “However, it doesn’t mean that there is no risk in the market. A less successful scenario could happen if there are no successful, profitable business models in the market; there are very few truly useful and attractive telematics services in the market; most telematics services can be catered for by drivers’ smartphones; and for safety reasons the Chinese government enacts regulations during the forecast period to restrict in-vehicle communications such as making phone calls and accessing the internet.”
By comparison, the aftermarket for in-vehicle telematics systems in China is forecast to struggle. One big challenge is the service fee. People really don’t want to pay extra money for services they already have on their smart phones, such as navigation and internet access. In addition, most aftermarket products cannot provide security related telematics functions. This is thought unlikely to change in the future since it will be very hard for aftermarket telematics system suppliers to gain support from vehicle manufacturers.
- Events & Awards
- Magazine Archives
- Oil & Gas Engineering
- Salary Survey
- Digital Reports
- Survey Prize Winners
- CFE Edu
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