The Market for Electric Car Telematics Will Reach $1.4 Billion by 2017

In addition, many manufacturers are developing applications that can provide details on where the closest charging stations are within range of the current battery level of charge. According to a new report from Pike Research, nearly nine out of ten PEVs sold this year will include at least a basic telematics package, and that percentage will likely grow to 94% by 2017. Annual revenue from worldwide sales of electric vehicle telematics will total $1.4 billion by 2017, the cleantech market intelligence firm forecasts.

A key group of players in the EV telematics supply chain will be wireless equipment manufacturers coming from outside the automotive industry, who are accustomed to more compressed product development timeframes than the carmakers use.

“The hardware manufacturers are experiencing a bit of a culture shock,” says senior research analyst Dave Hurst, “as automotive development generally targets an 8 to 10-year lifespan, compared to a 2 to 3-year lifespan for other wireless devices. For this reason, despite the fact that much of the data being transferred in PEV telematics can be done easily with a slow GSM connection, most hardware manufacturers are targeting 3G services with their modems to ensure compatibility with the wireless network long term.”

In addition, while basic telematics packages that offer simple data connections for emergency services, breakdown calls, charging station locations, and diagnostics/vehicle monitoring will be standard features on most PEVs by 2017, many consumers will want more elaborate, connected vehicle telematics, which can provide live traffic, weather, streaming content, and cloud computing-based applications. Pike Research’s analysis indicates that, by the end of the forecast period, 80% of PEVs will come with connected vehicle systems installed. Those costlier packages will push average revenue per user (ARPU) for electric vehicle telematics to $13.27 by 2017, up from $10.65 today.

Pike Research’s report, “Electric Vehicle Telematics”, analyzes the market opportunity for telematics in plug-in electric vehicles, including market forces, technology, government influence on the market, and key drivers of the growth and profiles of key market players. The report includes plug-in electric vehicle sales, sales of basic and connected vehicle telematics, and global revenue forecasts through 2017, segmented by world region.

www.pikeresearch.com