Proving the Business Case for the Internet of Things

Safety telematics to have 42 million European subscribers by 2019: ABI

Iain Morris
April 15, 2014

Iain Morris
The number of subscribers to factory-installed safety and security telematics systems in Western Europe will exceed 42 million by 2019, according to a new paper from ABI Research.

The forecast implies subscriber numbers will increase at a compound annual growth rate of 47% between now and 2019.

“Traditional safety and security telematics continues its march forward in Europe with both VW’s [Wolfsburg, Germany) Car-Net and GM/Opel’s [Detroit, MI, USA] OnStar scheduled for deployment,” said Dominique Bonte, vice president and practice director of ABI Research. “A slew of new electrical vehicles from VW, Tesla [Palo Alto, CA, USA], BMW [Munich, Germany], Daimler [Stuttgart, Germany], and others will also boost telematics uptake and awareness.”

According to the market-research company, the EU’s eCall legislation will put Europe ahead of the US on safety telematics before the end of the decade.

However, compromises agreed between the Council and the European Parliament on deadlines for OEM Type-Approval and Public Safety Answering Point infrastructure readiness mean the launch date could potentially slip to 2016 or 2017, reckons ABI.

In the meantime, the automotive industry is shifting its focus from passive to active safety, with ADAS and autonomous driving rising up the agenda.

Safety telematics functionality is also being repurposed for new use cases, says ABI.

Volvo (Gothenburg, Sweden), for instance, recently announced its roam delivery service trial, allowing vehicles to be used as delivery pickup and drop-off zones based on digital key technology.

ABI says the service allows for huge savings on redelivery costs and is one example of how connectivity can open up opportunities for synergies with other segments, such as retail.
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