In Asia, the driver and safety ratio is not very impressive. A report done by Technavia was released which showed the in depth analysis to show which trends would overtake by 2020. But things have changed now. The report revealed the northward growth of integrated telematics penetration. New regulations have also been instrumental in market results. There seems to be almost no competition related to safety issues and growing automotive technology. But telematics system integration is ushering a new era in the continent. Telematics solutions offered to the driver make it possible to have a smooth drive.
Shall we now see how embedded M2M solutions are surging ahead in this context?
Premium solutions activate drivability
Today’s automobile is impressive and has a comprehensive dashboard. From high tech navigational instruments, infotainment, communications between vehicles and safety features are active. All connected devices foretell the roadmap for the next generation of solutions that will enable drives to become smoother. All these important things on the dashboard allow retention of telematics without which vehicular movement will have a bumpy ride. As trends move to the future, wireless connectivity will be popular and so will digital connections for the car occupants. The reality could be much sooner than expected.
M2M comes in the picture
- Since 2015, assistance for safety is pegged at 44.60%
- Vehicle management stands at 20%
- Telematics insurance is at 15%
- Infotainment remains at 25%
Just to go back to the drawing board, Telematics system integration combines telecommunications and information. The domains where system integration is possible has increased. The most favorable sector where it can be applied is automotive M2M market. By 2020, machine research says that this market will expand to 1.4 billion connections. Many different technologies are at play. As communication sector increases and moves forward rapidly with 3G/4G, social network, Big Data, mobility and cloud computing the exposure to innovate is unlimited. A vehicle can be a movable entity for providing information on the go. At one time, the high end vehicles offered engine data, brakes, fuel efficiency & consumption, gears and its location data. Now the possibilities have extended to vehicle diagnostics, geo fencing, fleet management, tracking and cargo management from warehouse to its final destination.
The current scenario shows that the tipping points for integration will be related to OEMs, 3rd party vendor apps and big data technologies. The most powerful thrust will be on predictive analysis which will fuel the telematics system integration. One of the biggest beneficiaries of this will be vehicle insurance companies. They will need data for various claims. This will show the driving habits of the vehicle owner/driver. It will trigger the era of pay as you drive or price of other insurance products as the vehicle data reveals. Now, the question is, will consumers or potential drivers like ‘connected vehicles’?
Make way for embedded car OEM telematics
New cars will have emergency calling systems. The regulation will soon be passed as adoption of telematics systems for commercial drivers’ shape take. In USA and Japan, they are already being implemented. Now embedding will be a mainstream feature rather than a mere differentiator. Vehicle owners can get road side assistance, track stolen vehicles, have full navigational systems, road maps for remote vehicular functions, and diagnostics. There will be a free trial period for embedded telematics services.
Advent of business models of car services
Once the trial period is over, the owner can choose niche services which are most required. For connected cars, the subscription can be renewed. In America, 6 months of free service is being provided. Auto giants like Hyundai and Toyota allow 12 months of free service. Basic telematics services and remote diagnostics come free during this period. Even in Asia, there is a possibility of these services being put up by 2020. Soon customers will be able to add more apps in the car, have elaborate infotainment and safety features for a lifetime. The car optimized apps will come sooner or later. M2M solutions are already in use as driver’s habits are being tracked by social media. This will impact the way advertising and marketing consumers’ products related to telematics will be made available across car makers. Those who wish to have a competitive edge will embed telematics system integration in various ways to surge ahead of their rivals.