The momentum around the connected car concept has grown dramatically in the past year. Today, every car maker in the world has a plan in place for adding wireless connectivity to their vehicles. In fact, many are already introducing LTE-equipped vehicles. Audi AG has in-car LTE service and General Motors has said it will equip more than 30 Chevrolet, Buick, GMC and Cadillac models with LTE by year-end.
But analysts caution that making connectivity available in the car doesn't necessarily mean that consumers will pay for it. A recent report from Strategy Analytics predicted that global telematics service revenues will exceed $7 billion by 2019 but the firm cautioned the wireless industry and car makers from counting on subscription revenue alone. The firm said that unless automotive OEMs look at other ways of monetizing their telematics offerings, service revenues will decline.
Analyst Roger Lanctot, who heads up Strategy Analytics' Global Automotive Practice, added that car companies should look at aftermarket sales opportunities as well as customer retention management solutions that can be enhanced by telematics as new business opportunities.
I'll be delving into the connected car business model and more during a panel I'm hosting in Las Vegas next month in conjunction with the 2015 Consumer Electronics Show on Tuesday Jan. 6, 2015, from 7 a.m. until 8:45 a.m. at the Treasure Island Hotel. My panelists include Philip M. Abram, Chief Infotainment Officer at General Motors; Kevin Link, SVP at Verizon Telematics; Magnus Lundgren, Head of Connected Vehicle Cloud at Ericsson; John Horn, President of RacoWireless; and Dominikus Hierl, CEO of Telit Automotive Solutions.
If you are interested in the burgeoning Connected Car space, you will definitely want to join me for this panel. To register click here. --Sue