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The connected car M2M services and connections market in the US is projected to witness substantial growth and will post an impressive CAGR of more than 28% and 32%, respectively by 2020. Safety and security feature is of utmost importance for the manufacturers of the automotive industry. These features include the ability to contact emergency services, the capability to track stolen vehicles, and vehicle diagnostics and directions. Vehicle telematics includes a broad range of computing and communications services installed in a car, which emphasizes mainly on safety, security, and convenience. It also includes nifty features like stolen vehicle recovery, emergency calls, remote door unlocking, concierge services, and remote diagnostics. Most of the in-car telematics solutions are accomplished by service providers through call centers. Moreover, vehicle-to-vehicle communication helps to avoid possible collisions and accidents. With its family tracking applications, it enables family members to track the location, position, and speed of the traveling person.
The emergence of smart parking with embedded sensors is one of the emerging trends that is likely to gain significant traction in the market. Smart parking enables real-time monitoring and controlling of the available parking space. These parking systems use sensors that are deployed in the center of the parking area. To acquire a parking spot, relevant data regarding the number of standby vehicles and those in the queue are gathered by these sensors. This helps to analyze and process the traffic flow and accordingly notify the passengers with alerts. Real-time monitoring and smart parking reduce parking-related issues and fuel wastage. Additionally, intelligent parking solutions help in reducing carbon dioxide and other pollutant emissions.
The connected car M2M connections and services market in the US is witnessing fierce competition due to the presence of several well-established global and regional vendors. With telecommunications companies, telematics providers, automobile companies, chip makers, and technology providers exploring the market, the competition among the suppliers is likely to intensify in the coming years. The market has seen numerous M&A over the past few years. Also, the vendors are collaborating to utilize their resources mutually and are offering innovative products to their customers to improve product differentiation.
The leading vendors in the market are -
Other prominent vendors in the market include Aeris, Airbiquity, Alcatel-Lucent, Apple, AT&T, Autonet Mobile, Axway, Bell Mobility, Broadcom, CalAmp, Daimler, Ericsson, Ford Motors, Google, Harman International, HERE, Hyundai Motors, IBM, Intel, Intelligent Mechatronic Systems (IMS), Mercedes-Benz Connect, Microsoft, Parrot Automotive, PSA Peugeot Citroën, Qualcomm, Tech Mahindra, Toyota Motors, Volkswagen, and Wipro.
The safety and security segment dominated the market and is expected to reach close to USD 17 billion by 2020. In the US, the connected car M2M services market by safety and security contributes the maximum proportion of revenue to the market, and this trend is likely to continue throughout the predicted period. Every car comes with built-in safety and security features, such as V2V communication technology. The demand for this technology will increase in the US during the forecast period, as it allows cars on the roads to automatically exchange relevant data and information.
During 2015, the OEM segment led the connected car M2M connections and services market in the US and accounted for close to 70% of the market share in terms of revenue. The increasing focus towards advanced value-added services is one of the primary factors driving this segment’s growth. In the US, most of the automotive manufacturers have been experiencing intense competition. This has led the manufacturers to provide value-added services attached to vehicles that make the connected car unique and different from the competitors. These value-added services are also used as a marketing tool to target new customers and retain existing customers to achieve high brand loyalty.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market landscape
PART 06: Market segmentation by application
PART 07: Market segmentation by connections unit
PART 08: Market segmentation by usage
PART 09: Market drivers
PART 10: Impact of drivers
PART 11: Market challenges
PART 12: Impact of drivers and challenges
PART 13: Market trends
PART 14: Vendor landscape
PART 15: Appendix
PART 16: Explore Technavio
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