The study found Telematics is one of the most dynamic and fastest growing segments of the cellular machine-to-machine market. The total number of telematics M2M SIMs reached 37m in 2013, representing about 4% of all passenger cars.
Pyramid estimates, M2M SIMs in passenger cars will grow to 12% by 2018, with telematics M2M SIMs contributing more than 20% of all M2M SIMs.
The report shows that laws are a key market driver, with legal requirements beginning to have an impact on the markets in Brazil, parts of Europe and Russia.
Pay-as-you-drive and pay-how-you-drive are the key telematics-based insurance services, but increasingly insurers are adding more services, such as security and vehicle location services, which also lower their risks.
Pyramid Research has identified four key approaches operators can take to expand their presence in the telematics value chain and thus their share of it:
- They can become telematics service providers, as Verizon has done through its acquisition of Hughes Telematics.
- Operators can offer flexible billing, so that telematics access and services can be charged to a phone bill.
- To be able to plan and deploy services better, operators can develop or partner for systems integration capabilities.
- Operators can leverage their brands and channels to sell telematics services directly to end users.
‘Mobile Operators Go after the Connected Car Opportunity; Cellular Telematics Value Chain, Business Models and Market Forecast,’ a report by Pyramid Research, provides a detailed analysis of the market for various M2M telematics services aimed at non-commercial cars and delivered over cellular networks.