Embedded SIMs fuel connected car revenues

The value of the connected car market is set to grow by €27 billion over the next five years, but only if the mobile and automotive industries work closely together, the GSM Association (GSMA) warns.
Research conducted for the GSMA by SPD predicts the sector will be worth €40 billion globally by 2018, with the majority (83%) driven by applications based on a SIM built into the vehicle. Services including safety, infotainment, navigation and vehicle diagnostics will be encouraged by the embedded SIM, the Association notes.
However, Michael O’Hara, chief marketing officer at the GSMA, says the figures will only be achieved if the mobile and auto industries work closely together. “We are in the midst of a connected car revolution and it is vital that the mobile and automotive industries work together to deliver scalable and pervasive connected experiences and ensure this market reaches its potential.”
The market is set to be boosted by regulation covering embedded mobile technology. The European Commission has mandated all new cars sold in the region feature an eCall unit from 2015, which will use embedded mobile technology to handle emergency calls. O’Hara notes that Russia and Brazil are working on similar moves.
“Embedding mobile technology in cars will not only save lives, but also drive a range of new services and provide a significant revenue opportunity for the mobile and automotive industries,” he says.