OEM embedded telematics systems to grow at a CAGR of 30.6%

Berg Insight reported the shipments of OEM embedded telematics systems worldwide are forecasted to grow from 8.4 million units in 2013 at a compound annual growth rate (CAGR) of 30.6 percent to reach 54.5 million units in 2020. Berg Insight forecasts that the number of cars sold worldwide equipped with head-units featuring handset-based telematics capabilities will grow from 7.0 million in 2013 to 68.5 million in 2020. Berg Insight’s definition of a car telematics system is an automatic system designed for passenger cars that incorporates some form of cellular communication. Berg explains "Automotive manufacturers can choose between several connectivity options when creating connected car services, which are not mutually exclusive. The main options today are embedded telematics devices, tethered handsets and integrated smartphones. Car manufacturers often use a combination of these options to support different customer needs and keep pace with the rapid development of mobile technology." Other findings by Berg Insight includes: Berg Insight forecasts that the number of telematics service subscribers using embedded systems will grow at a compound annual growth rate of 38.1 percent from 16.6 million subscribers in 2013 to 158.9 million subscribers in 2020. “A key factor that influences the growth in active subscribers is the length of the free trial period i...