Connected Vehicles: Market and Forecast for LTE and Telematics Applications 2014 - 2019
The automobile industry is very competitive. The profitability on cars is slim with margins in the US as low as two percent on a new car. The large motor companies can make money by self-financing consumer deals. Dealerships hope to make money by promoting repair service packages, and offering extended warranties. The connected car is considered a gift because it is a new revenue stream, has a better margin than the car itself, and can be a differentiator between the cars themselves. In the US, leading automobile manufacturers have committed to embedding cars with LTE in their product lines. For example, BMW makes an LTE/Wi-Fi adapter for their cars. Alcatel-Lucent, Verizon, and AT&T are proponents of the LTE-connected car. However, many new cars have embedded Wi-Fi, use GPS tracking, and have other forms of telematics. The full case for LTE is not yet realized. This research evaluates the technology, solutions, and market for LTE and telematics in vehicles. The report includes trend analysis, future outlook and forecasts through 2014.