MUNICH, Germany Market researcher iSuppli (Tempe, Ariz.) sees a boom in the automotive industry towards telematics. Through the year 2016, iSuppli predicts a compound annual growth rate (CAGR) of 22.5 percent in terms of units for the Western European market. But there are significant differences between automotive brands.
According to iSuppli automotive analyst Anna Buettner, General Motors will experience the strongest growth when it comes to telematics: In 2016, the company will likely sell 1.4 million telematics units, which translates into a CAGR of 41 percent. General Motors with its European brands Opel, Vauxhall and Saab currently offers only mobile-device-based telematics equipment.
In its study, the market researcher discriminates between embedded telematics units with functionality integrated into the cars' head unit, and mobile-device based telematics systems which typically use a cellphone to establish the communication processes.
The study regards Volkswagen as the winner in terms of units for the year 2016. The German OEM will sell 3.2 million systems, up from 490.000 systems in 2008.
Volkswagen will have French OEM PSA on its tail. PSA with its brands Peugeot and Citroen currently equips 42 percent of its cars with embedded telematics devices, more than any competitor. In 2016, PSA will sell 3.1 million units, iSuppli predicts.
With 2.3 million units, Italian manufacturer Fiat will follow in a certain distance. Fiat currently sells its 'Blue and Me' in about 20 percent of its cars.
Ford who plans to introduce its Sync system in Europe in 2011 is predicted to sell 1.7 million units in 2016. Sync has the same Microsoft roots as Fiat's Blue and Me.
Renault will experience a disproportionately high growth for its telematics systems, iSuppli has calculated a CAGR of 30 percent, resulting in sales of 1.6 million units in 2016. The high growth however is largely owed to the fact that the French OEM hitherto has been slow to adopt telematics in its cars, be it embedded or mobile-based.
Car maker Daimler with its Mercedes Benz luxury brand will likely sell 1.4 million systems in 2016, the same amount as GM. But since Daimler already has sold 230.000 units in 2008, the growth rate is lower. Like GM, Daimler offers only mobile-device based telematics in contrast to its fierce competitor BMW which already equips a significant percentage of its cars with embedded telematics. The iSuppli study does not disclose the percentage of embedded telematics systems for BMW but experts believe it is almost as high as PSA's. The Bavarian luxury car maker is expected to sell about 1.3 million telematics units in 2016.
Toyota as the most visible vendor of Japanese cars in Europe is expected to sell 0.99 million units in 2016. The small absolute number however hides a relatively strong growth of 31 percent per annum.
Related articles and links:
Head unit increasingly resembles PC, iSuppli finds
Continental puts Android internet platform on wheels
Analysis: Automotive software, hardware focuses on head unit
Multicore support, security on Autosar roadmap