Global sales of electric vehicles are expected to reach approximately 30 million units by 2025, while connectivity applications such as telematics are anticipated to grow in scope, according to a Frost & Sullivan news release.
The consulting firm said the number of connected cars that will feature telematics could increase to 65 million in 2025 — up from 23 million in 2018. Telematics are described as a type of connectivity solution, such as 4G Long-Term Evolution (LTE), and systems that provide vehicle charging information, charging station locations, charger availability, and connection compatibility, among other things.
“With the rising popularity of connected services among fleet owners, telematics has become a key differentiator for OEMs,” said Anubhav Grover, Mobility Research Analyst. “Telematics is also helping OEMs (to) strengthen their brand, converting one-time sales into ongoing service-centred relationships.”
One example of this is Honda: the company launched its SmartCharge Beta Program that integrates a vehicle’s telematics system with the city grid. The program provides users with an incentive to charge their EVs when electricity demand is low, according to Grover.
The increase of connected cars and connected solutions will also result in more data for OEMs and data aggregators. That’s not news, but as companies access more and more data from these systems, Grover said automakers will need to shift from a subscription model to a customized pricing- and revenue-sharing model instead.
