A new report by Juniper Research on the telematics sector found that the number of in-vehicle apps in use is expected to reach 269 million by 2018, representing a more than five fold increase on last year’s figure.
Connected Cars: Consumer & Commercial Telematics and Infotainment 2014-2018 reports growth will be fueled by solutions such as Apple’s CarPlay, which will promote in-car apps.
Revenues from consumer and commercial telematics will reach just short of $20 billion by the end of 2018. Smartphone tethering and the integration of apps into the head-unit will affect telematics revenues. Nevertheless, across all forms of embedded and after-market telematics, momentum is spreading beyond developed markets
Telematics is defined by Juniper Research as ‘the use of wireless technologies and in-vehicle IT to relay information to and from vehicles, with the aim of improving the driver experience or providing additional information and analysis to the driver or a third party.
Telematics can be applied to a number of different situations, involving communication with external infrastructure, communication within the vehicle itself, or to media content, connected devices and the cloud.
App integration will be facilitated as standardized approaches like MirrorLink are adopted this year by OEMs (Original Equipment Manufacturers), content providers and automotive entertainment specialists.
By 2018 most new vehicles will come with integrated apps as standard after-market app integration will also be commonplace, as head-unit manufacturers launch increasingly sophisticated devices.
The ability to split the telematics will allow for granular billing of infotainment and other services. This will particularly be the case as streaming and other advanced services become available in developed markets through LTE adoption.
Widespread smartphone tethering and in-vehicle apps would continue to drive down the price of vehicle manufacturers’ own embedded telematics infotainment services.
Currently Ford offers opportunities for app developers. Chevy/GM delayed its OnStar AppShop announced at CES. BMW drivers hate their current BMW Android and iPhnone apps. GM is working on Samsung Galaxy Gear 2 OnStar apps.