Podcast #65: Robust Software Updates, Remote Diagnostics, Data Analytics Key to Premium Connected Vehicle Experiences

The automotive industry is undergoing a massive digital transformation as the concept of CASE (connected, autonomous, shared, electrical) is gaining traction. And as the number of connected vehicles increases, data logging, remote diagnostics, and over-the-air (OTA) software updates become more important.

With the Deep Connected Platform from Sibros, a Silicon Valley-based company, vehicle manufacturers and fleet owners can perform OTA software updates without many hassles. The Deep Updater can be configured for over 80 components and controllers in the vehicle. Similarly, the Deep Logger can collect event-driven data and transmit diagnostics so a service engineer can remotely track down a technical issue.

In the latest episode of The Counterpoint Podcast, host Matthew Orf is joined by Sibros CEO and co-founder Hemant Sikaria and research analyst Fahad Siddiqui to talk about OTA software updates for connected cars and more. The podcast explores how Sibros is helping OEMs and fleet owners with software and data solutions, and how OTA updates can avoid massive recalls, and much more.

Click to listen to the podcast

You can read the transcript here.

Podcast Chapter Markers

0:55 – Hemant introduces Sibros and his background of working in the industry.

02:40 – Hemant talks about software and data solutions offered by Sibros and how they help OEMs and fleet owners.

04:20 – What types of connected vehicles can the Sibros solutions be deployed on?

06:50 – Hemant on how Tesla made OTA updates mainstream.

08:16 – Hemant talks about current partnerships with clients that are deploying Sibros solutions as a part of their digital transformation.

10:05 – How Sibros works with chipmakers for software integration to support new programs and vehicle models.

12:38 – Hemant on whether it is easier for traditional OEMs to work with Tier 1s to manage all the software without companies like Sibros.

15:03 – How Sibros can help carmakers avoid massive recalls in case of software issues.

17:40 – Hemant on the recently announced Google Cloud partnership.

18:52 – How does Sibros’ solution fit in helping carmakers enable OTA feature upgrades?

21:07 – How connected cars and autonomous features fit into the ecosystem with Sibros?

24:12 – Hemant talks about ensuring data security at Sibros.

Also available for listening/download on:


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SID Business Conference

Our Research Director Jeff Fieldhack will be a speaker at the SID Business Conference.

Session Details: Emerging Technologies Enabling Mobile Advances

May 9 – 10, 2022

On-site and Virtual

This session will feature presentations on new technologies enabling advances in mobile displays. Mobile OLEDs are expected to undergo many changes through advances in backplane technology to IGZO and LTPO, frontplane technology through larger substrate evaporation and much more.

  • John Brewer, CEO, Amorphyx
  • Dr. Feng He, Head of Product Management and Application, UTG-Cover, SCHOTT
  • Jeff Fieldhack, Research Director, Counterpoint

Register for the event here.

To get live Connected Vehicle 2022 updates you can watch this space or follow us on Twitter 

About CV2022

The SID Business Conference is the display industry’s largest conference devoted to the display market. Organized in conjunction with Display Supply Chain Consultants (DSCC) for the sixth consecutive year, this event takes a supply chain approach to addressing the display market outlook with executives from panel suppliers, brands, equipment suppliers, materials manufacturers, industry analysts and financial analysts. Each session will address current and emerging issues facing the display industry through presentations and panel sessions with participation from industry leaders and market analysts, providing the insights and strategies necessary to navigate the changing global display marketplace. The 2022 event will consist of both onsite and recorded talks and attendees can attend in person or virtually.

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Connected Vehicle 2022

We are happy to join as the Knowledge Partner for the 6th edition of the Connected Vehicle event presented by Telematics Wire. The event runs from 4th to 6th May 2022 and will be held at Radisson Blu, Bengaluru, India.

Our analysts Soumen Mandal and Mohit Sharma will be attending the event. Click here (or send us an email at to schedule a meeting with them.

Register for the event here.

To get live Connected Vehicle 2022 updates you can watch this space or follow us on Twitter 

About CV2022

Covid-19 transformed normal life and for quite sometime, almost a year and a half, boundaries between living in the physical world and transcending into a quasi digital world blurred. Just a few months back, the idea to return soon to normal life appeared a bit optimistic. But, with lowering of face masks without fear, restrictions on movement becoming relaxed, there is a renewed confidence in the individuals, industry & government in finally being able to control the spread of Covid and its infection being shown the door. A mass return to work is expected and we have to make conscious efforts in all walks of our personal and professional life to embrace and adapt to a post-pandemic existence. Business and professionals have to reach out. The best way to reach large audiences is via a conference. Whether we wish to empower our hesitant workforce or host a gathering of industry leaders, a large-scale event utilises the powerful resonance of industry leaders to inspire action in the business world.

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How Connected Vehicle Data is Shaping the Automotive Industry

The connected car market is growing, and cars are becoming more connected than ever before, and this will continue as the Counterpoint Connected Car study predicts that more than 70% of the cars sold will be connected cars in the year 2025. The data generated by the vehicle includes information about the vehicle status, driver’s behavior, and location-based data. With the emergence of Electric Vehicles (EV) and more driving safety features, connected vehicles become more relevant. This available vehicle data is “gold” for OEMs, suppliers, insurers, mobility providers, fleet owners and much more. However, most players especially OEMs failed to take the opportunity to monetize the car data. In this blog, we will be learning about connected car data, why OEMs failed to monetize the data and lastly, talk about the connected vehicle data platforms and the players.

What makes a car “connected’’?

A car is connected if it has internet access, which allows the car to share internet access and data with other devices inside the car and/or devices, networks, services outside the car as well as other cars, homes, offices, or infrastructure. A connected car is connected through two types of connectivity solutions: tethered or embedded.

An embedded connectivity solution is built into the vehicle using embedded hardware called a Telematics Control Unit (TCU). The telematics unit has an integrated modem that establishes the connection between the car and the network. For the vehicles that don’t have a built-in TCU, services can also be provided via devices that are brought in by users, like smartphones or wireless dongles (connected to the vehicle’s On-Board Diagnostics (OBD) port), such connectivity solutions are termed tethered or, sometimes, a Bring Your Own Device (BYOD) solution.

Use Cases for Vehicle Data

The connected car data presents the opportunity to monetize the data through different business models. The vehicle data can be used to elevate the consumer experience or offer new services or improve the vehicle’s performance. The various applications of car data are as follows:

  • Usage-based Insurance
  • Predictive Maintenance
  • OTA updates/upgrades
  • Fleet management
  • Traffic Management
  • Roadside assistance
  • In-car advertisements
  • In-car payments

OEM’s slow approach to capitalize on the car data

At the outset, OEMs struggled to capitalize on car data as they wanted to be in control of the data at every part of the value chain even though they were not in a good position to do so. Moreover, automakers lacked the resources and skills needed to leverage the data into meaningful insights. In addition, connected cars produce huge amounts of data. Storing the data, and who owns the car data, became a big question for carmakers. As per the European Union’s (EU) regulation, 2018/858, car manufacturers should share connected car data with third parties. Some of the OEMs, like GM, were the first to monetize the data services. Now, with the introduction of data aggregators like Otonomo or Wejo, almost every OEM is looking to monetize vehicle data.

What are the Data Aggregators?

Data aggregators are the companies that offer a platform for the collection, storage, analysis and sharing of the data from OEMs, Telematics Service Providers (TSP), or fleets. These companies process the raw vehicle data from various car companies and follow the privacy norms according to the relevant regulations. The processed and standardized car data is then ready to sell/share through a marketplace or as APIs to different entities such as insurance companies, mobility companies, governments, etc. Examples of such companies are Caruso, High Mobility, Otonomo, Wejo and some established player like HERE. In this blog, we will focus on Wejo and Otonomo.


Founded in 2014, Wejo went public in 2021 through the SPAC merger with Virtuoso Acquisition Corp. The company is backed by GM and Palantir. It has two business solutions, Wejo Marketplace and Software and Cloud solutions. The marketplace includes a data visualization platform called Wejo Studio. In the last quarter of 2021, Wejo introduced its software and cloud solution. It has partnered with Microsoft to build its suite of data and intelligence solutions on the Azure cloud platform. This year at CES, Wejo announced its analytical platform specifically designed for connected, electrical and autonomous vehicles leveraging its partnership with Microsoft Azure and its data platform called Wejo ADEPT. The platform will only collect the most relevant data by filtering and then analyzing the connected car data at the edge before transferring it to the cloud. Wejo plans to expand its offerings into five new services.

Source: Wejo

Wejo has a strong partnership with OEMs and Tier-1 suppliers, by the end of 2021, it had partnered with 22 OEMs and Tier-1 suppliers. Leveraging its relationship with OEMs it has 16.1 million cars on its platform out of which it receives data from 11.8 million vehicles and processes nearly 16 billion data points per day, mainly in the US. Its customer base includes 68 companies, and most of the revenue (90%) comes from the US through its Marketplace services.

Source: Wejo

Financial Highlights

  • The full-year revenue amounts to $2.6 million which is a 92% growth from last year. The fourth-quarter revenue contributed to $1.4 million which is 180% higher than the same period last year.
  • The net loss increased from $60.3 million in 2020 to $217.8 million in 2021
  • The total contractual value increased by 68% to $20.5 million


The company was founded in 2015 with its headquarters based in Israel. The company went public in August 2021 through the SPAC merger with Software Acquisition Group. Otonomo offers a Vehicle Data platform and marketplace and, after the acquisition of Neura, it leverages its capabilities and offers a mobility intelligence platform. In addition to the platform and marketplace, Otonomo also offers API solutions for real-time data and historical vehicle data.

Source: Otonomo

It has partnered with 22 automakers on vehicle data agreements. The platform has 50 million vehicles with 4 billion data points per day. Otonomo uses Amazon cloud to host its platform. By the end of 2021, it had 55 customers from different industries. In February 2022 it has made another acquisition of the company known for telematics-based insurance technology.

Source: Otonomo

 Financial Highlights

  • In 2021 the revenue grew by 337% to $1.7 million as compared to last year. The fourth-quarter revenue amounts to $1.1 million compared to $0.21 million in the same period in 2020.
  • The net loss for 2021 is $30.9 million as compared to the $20 million in the previous year.
  • EMEA contributes approx. 71% of the revenue followed by APAC with 19% and the rest North America
  • Three companies/customers accounted for 55% of its revenue. Hylabs ltd is the biggest contributor with approximately 28% followed by Mitsubishi Motors with 14% and Neotec Bio with 13%.


Even though both Otonomo and Wejo are data aggregators, they differ in their technology capabilities and business approach. Otonomo provides vehicle data for various use cases across different verticals but lacked visualization capability. While Wejo has visualization capabilities, it lacks solutions for different use cases, although it plans to launch some in 2022. Otonomo is playing aggressively and looking to consolidate new resources and capabilities through acquisitions and thereby bringing new customers and increasing the addressable market. Wejo, on the other hand, relies on developing its product or new services through partnerships with global technology players.

Wejo currently does not offer any solution or services to developers through its own API whereas Otonomo has its own API, which allows developers or new service providers to have access to vehicle data. Lastly, Otonomo and Wejo are each strong in one region – Europe and USA respectively.

We have also published a report on the location platforms where we also analyzed and evaluated 25+ platform players like HERE and Otonomo based on the CORE (Competitive Ranking & Evaluation) framework.

Overview of the Otonomo and Wejo

Source: Counterpoint

Connected & Autonomous Vehicle Summit 2021

Our Research Vice President Neil Shah will be speaking at the Connected & Autonomous Vehicle Summit 2021 on September 23rd.  The topic of the panel discussion is “Paving the way to autonomous vehicles with ADAS”.

Session Details: Thu, Sep 23, 2021, 10:00 AM – 4:30 PM IST

Neil will be joined by:

  • Surender Kannan, Vice President of Sales APAC & Japan, Cavli Wireless
  • Dr. Ajay Palkar, Head of Electrical & Electronics – EE I Technology Centre, SKODA AUTO Volkswagen India

Registration link:

About the webinar:

Ever since the automobile industry graduated to become an accepted mode of road transportation, it has had a profound impact on the world. It has scaled many landmarks in its 100 years plus journey. It has altered the way people move, live, and consume things. During the COVID-19 pandemic, the resilience of the Indian auto industry was tested severely and the crisis would demand increased merger & acquisition activity in the near future. Before the pandemic, the industry has witnessed various emerging technologies such as connected mobility, electric mobility, autonomous driving, ADAS, blockchain, speech and voice recognition, advanced navigation etc. paving their place in regulatory mechanisms.. The idea of connectivity will not only enhance user’s safety, security and convenience but will also revolutionise how services are paid for.

Today, powered by the advancements in technology the automotive industry is undergoing an accelerated transition, drawing our much needed attention towards it. All of us are waiting for Covid fog to clear before we bring back our two annual physical platforms for the industry to address the present and future of transportation in India.

In the prevailing pandemic, we conscientiously decided on cancelling our annual conference TI Automotive 2020 & annual conclave CV 2021. Meanwhile, for us as a focussed media in automotive telematics, simultaneous move to build a virtual platform has come as a natural corollary.
Telematics Wire is looking forward to welcoming you all to our first virtual conference and exhibition “Connected & Autonomous Vehicle Summit” (CAV Summit).

CAV Summit is a progression with optimism and resolve in the direction to play a part in the cumulative industry vision to renew the vibrancy of the automotive industry. It is a step to forge synergy and reconnect all of us in the automotive telematics community.

CAV Summit is being organised to promote information interchange amongst stakeholders in the passenger mobility and transportation. The success story of shared mobility in India is now well known. Connected vehicle ecosystem and in not so far various levels of autonomy will be seen on roads in India as well. Notwithstanding the present apprehensions of a sizable customer segment against fully autonomous cars at their doorstep, trend seems to be shifting towards CAV finding their place in passenger and commercial space.

Get ready to explore valuable content and ample engagement opportunities in this summit. Live-streamed videos and virtual tours with opportunities to interact with luminaries of the industry in interactive sessions.

To get live updates from the event you can watch this space or follow us on Twitter .

Meet Counterpoint at Connected Vehicle 2020

Counterpoint will be attending Connected Vehicle 2020 from March 3 – 5

Our Consulting Director, Vinay Piparsania, will be moderating a panel discussion at Connected Vehicle, 2020 on “Software Driven Innovation for ADAS & Autonomous Future”. You can schedule a meeting with him to discuss the latest trends in the automotive, telematics and mobilty sector and understand how our leading research and services can help your business.

Click here (or send us an email at to schedule a meeting with him. 

Read more about the Connected Vehicle 2020 Event.

To get live Connected Vehicle 2020 updates you can watch this space or follow us on Twitter 

Transforming Two Wheeler Rides with Connected Technology

As the automotive industry veers towards digitalization, vehicle telematics solutions are transforming connected two-wheelers (2W) from concept to reality. While modern commercial and passenger vehicles are already integrated with mainstream telematics and driver assistance features, the current wave of digital connectivity is now rapidly progressing into the 2W category as well.

Why the Push for Digital Innovations in the 2W Category?

Two critical and specific user factors for 2W owners have been primary drivers so far:

  1. Prevention of road accidents
  • Based on statistics from around the world, road accidents involving 2W have been on a steady rise in recent years
  • Detailed analysis of such 2W accidents have identified driver distraction, failure of perception and control, and over speeding as the three main causes for such incidents
  • Increasing safety regulations and innovative technological solutions are urgently being developed to avoid such instances, and to ensure the safety of riders and other road users
  1. Vulnerability to theft
  • Stolen 2W incidents too have seen a steady increase
  • Lack of  a reliable solution for tracking stolen 2Ws, and not having a real-time alert system  of a theft attempt to the owner, are attributed as possible causes for an increase in such criminal incidents

The Connected Motorcycle Consortium

In 2016, BMW Motorrad, Honda, and Yamaha together founded the Connected Motorcycle Consortium (CMC). Followed soon after, by Kawasaki, KTM, and Suzuki, the primary mission of CMC is to establish the basis for innovating on technology that integrates motorcycles in a cooperative, intelligent transport system (C-ITS), ensuring safety on-road through connectivity and networked communications between them.

The consortium’s objective is to establish a harmonized standard for motorcycle connectivity systems so that motorcycles can communicate with other vehicles on the road, to provide safety alerts and collision avoidance. CMC conducts tests on how connectivity and networked communications can be at the core of a new generation of safer and smarter bikes.

Tests have revealed that connected systems developed for cars and trucks are mostly incompatible with 2Ws, mainly because of their particular dynamic properties. For members of the CMC, integration to such networked automotive safety system necessitates the development of Vehicle-to-Vehicle (V2V) technology that will be compatible not only across all 2W OEMs but also across all types of vehicles.

Exhibit 1: Examples of Key Connected Features in Two Wheelers – Ather S340

A Need for New Collaborations

The need for digitally connected 2Ws offers collaboration opportunities among automotive manufacturers, suppliers, technology companies, telecom operators, insurance firms, government policymakers, and transport operators. Altogether, these stakeholders need to ensure a superior 2W riding experience, with enhanced safety offered through technological advancements.

Leading global automotive suppliers and telecom service providers, like Bosch and Vodafone, have already developed future-ready solutions for automotive connected features, partnering with other technology companies, to enable mobile connectivity for this next-generation 2Ws.

Exhibit 2:  Key Features in Connected Two Wheelers by BOSCH and Vodafone

Introducing Connected 2Ws in India

So, how are vehicle telematics and digitalization changing the ride experience in India, the world’s largest 2W market, where affordability is critical?

With the rapid pace of innovation happening in the country’s 2W industry, the mainstream embedding of vehicle telematics is increasing, and the impact is palpable.  Riding is no longer just two wheels and an engine,  staying connected on-the-go is also becoming popular. Be it turn-by-turn navigation, or to control music, having a smarter riding experience is now a key consideration that 2W riders want. Exhibit 3 shows the most affordable 2Ws available in India, offered with connectivity features.

Exhibit 3:  Affordable Two Wheelers in India, offering Connectivity Features


With 2W manufacturers introducing their next generation of intelligent motorbikes and scooters with integrated telematics and smart-assistance capabilities, expect digital applications and features to become mainstream soon around the world. It will eventually evolve the 2W driving experience, make it safer, and take it to a whole new level.

Associated Reports Available on Research Portal

Indian Automotive Electronics Market to Triple by 2025

The report covers passenger cars, two-wheelers, three-wheelers, and commercial vehicles sales in India from leading automakers, with a focus on automotive electronics sales forecast.

Vehicle sales in India are demonstrating on a downward in 2019, affected by factors including moderating economy and liquidity crisis of Non-Banking Financial Companies (NBFC). The market, however,  is expected to gradually recover during the forecast period, registering a CAGR of 5.1%.

Automotive electronics sales are projected to triple during the period, driven primarily by rising income levels and the growing customer preference for in-vehicle digital experience.

Indian Two-Wheeler Electronics Market to Triple by 2025

The report covers two-wheeler sales from leading automakers like Hero MotoCorp and Honda Motorcycle and Scooter India, including electronics (telematics, others) sales forecast.

6.8 Million Connected Heavy Construction Machines to be Shipped till 2025

Caterpillar, Komatsu, Hitachi, JCB and Volvo to account for 65% of the total connected heavy construction machines that will be shipped during 2018-2025.

    New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – April 9, 2019

 A total of 6.8 million construction machines with embedded connectivity will be sold during 2018-2025, according to the latest research from Counterpoint’s IoT Device Tracker Service. This would mean the global Internet of Things (IoT) Construction Equipment market will grow at 25% CAGR through 2025. Construction equipment includes off-road construction equipment like earth-movers (excavators and loaders), material handlers (cranes), off-road trucks, and machines used for activities like road construction and mining.

In 2018, Caterpillar had the highest market share, followed by Komatsu and Hitachi. Caterpillar partnered with AT&T to provide 4G LTE connectivity to its customers across the globe. AT&T provides a global SIM Card in addition to IoT management services to track, manage, and deploy asset connectivity across 155 countries.

     Exhibit 1: IoT Construction Equipment Share by Brands in 2018E

IoT Connected Construction Equipment

Source: Global Cellular IoT Device Tracker 2018-2025

Construction equipment OEMs introduced embedded telematics systems using wireless cellular communication technology, either independently or in partnership with third-party aftermarket telematics players. Key aftermarket telematics players include Trimble, Telogis, Heavy Construction Systems Specialists, Orbcomm, Geotab, Zonar Systems, Teletrac, Navman Group, ACTIA Group, LoJack, The Morey Corporation, TelliQ, and others. Typically, OEMs are embedding heavy construction machines with a cellular modem, while access to services is complimentary for three to five years.

Commenting on the findings of the study, Senior Analyst, Hanish Bhatia said, “Traditionally, satellite communication dominated this space, but OEMs have shifted to cellular connectivity in the past few years. OEMs are partnering with third-party aftermarket telematics firms, which provide end-to-end telematics solutions. Remote diagnostics, maintenance, fuel consumption, and other machine usage trends, remain the key application areas.”

Adding his perspective, Research Analyst, Satyajit Sinha noted, “IoT connectivity is critical when it comes to heavy construction machinery. The technology helps fleet owners keep track of machine downtime, resulting in significant cost savings. Also, safety remains a key issue at construction sites and connectivity has helped companies minimize accidents. We expect most OEMs to adopt embedded cellular connectivity across their products by 2025.”

The comprehensive and in-depth report on “Global IoT Construction Equipment Forecast: 2018-2025” is a part of our Counterpoint’s IoT (Internet of Things) Service. This report is available for download here.


Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Hanish Bhatia
+91 9871849857

 Satyajit Sinha

How Do Automakers Generate Additional Revenues from Connected Vehicles?

Connected vehicles provide auto manufacturers, and adjacent industries, the opportunity to establish beneficial relationships with customers over the entire ownership cycle. The capability to efficiently deliver over-the-air (OTA) communications, fixes and upgrades, provides stakeholders with the opportunity to offer innovative services, generating new and recurring revenue streams.

100% Connected Cars Happening Sooner than Expected

The global automotive market is already seeing a significant rise in the adoption of connected vehicles.  By country, the largest markets for connected car sales in 2017 were China 32%, USA 13%, Germany 11% and UK 9%.  Research by Counterpoint’s Smart Automotive Tracker service, expects that more than 125 million cars fitted with embedded connectivity will be shipped in the next five years.  By 2025, it is expected that all cars sold in developed markets, i.e. EU, NAFTA, China, Japan and Korea, will include originally fitted embedded telematics systems.

Data-the New Fuel for Connected Cars

Embedded connectivity is fundamentally changing the relationship between automotive stakeholders and vehicle drivers.  Much like mobile phones, connected vehicles are generating and exchanging hundreds of terabytes of customer data daily, primarily through 4G LTE networks. With multiple cameras and sensors fitted as standard equipment, automotive manufacturers, suppliers, agencies and dealers, are now collecting valuable pieces of usage information.

The potential monetization of this information is substantial. At a worldwide level, Counterpoint estimates connectivity revenues will exceed 500 billion US dollars by 2030.

Currently, services available and offered through Connected Cars include:

  • Remote door unlocking/locking, engine starting, personal security alerts, vehicle theft prevention services
  • Emergency assistance alerts and breakdown notifications
  • Preventive maintenance alerts, remote diagnostic information, service reminder alerts
  • Onboard navigation, vehicle tracker, geo-fencing, traffic and speed camera alerts, parking information, weather information, fuel station or recharging point information, travel guides, satellite imagery, location sharing.
  • Infotainment, news, music, video, event feeds, mobile communications, internet access, social networking, location-based information, restaurant reviews/reservations and other concierge services

What Will it Take to Realize These Potential Revenues?

The realization of this potential revenue depends largely on stakeholders using the information collected, to develop next-generation products and services that customers actually want. By meaningful analyses of trends and patterns, insights need to be drawn to provide a better driver experience, improve vehicle quality, reliability, and result in a stronger competitive position, offering additional revenue opportunities. Much like how open platform application development facilitated smartphone adoption or, as some may say, addiction.

As automotive OEMs adopt telematics and analyse data generated by vehicles, they also have the potential to:

  • Enhance brand loyalty, through qualitative/quantitative insights and deeper understanding of relationships with their customers
  • Improve vehicle product design, to be extra competitive
  • Extend internet related services to customers, in a safe and secure manner, while they are on the road
  • Track vehicle speed, location data, continually improve the accuracy of traffic simulation and algorithms
  • Identify erratic driving behaviour, i.e. rapid acceleration, sudden braking, other forms of aggressive driving

How Do Adjacent Industries Benefit?

The entire automotive ecosystem also stands to benefit from these alternate revenue streams. The following stakeholders are already demonstrating their ability to stay ahead in the game:

Automotive Dealerships

Dealers, so far, remain the only connection customers have to their vehicle brand. While dealers are independent businesses, consumers do not distinguish between them and the original vehicle manufacturers. Connected cars offer opportunities for OEMs and dealers to work seamlessly together. For example, remote capabilities with on-board-diagnostics systems and sensors, allow for accurate assessment when a service or repair is needed. The data pattern is compared to known issues, resolutions determined, parts identified, and the nearest dealership notified. As soon as the customer or the vehicle arrives at the workshop, the technician with the right skills is already prepped, with the right tools and parts, minimizing any inconvenience to the customer, improving overall productivity and workshop throughput significantly.

Further, analytics are detecting emerging trends across the entire cars-in-service population, improving forecasting accuracy, optimizing parts inventory, minimizing carrying costs and improving fill rates. Additionally, such analysis has streamlined recall campaigns, reducing campaign cycles, all at lower costs.

OEMs and dealers now have accurate insight into where vehicles actually operate – where people stay, work, go to school, shop etc. By focusing marketing efforts specifically and efficiently to drivers within their assigned territory, dealers can offer enhanced convenience to their customers as well as identify where they may need additional servicing centers or, if required, relocate the dealership.

Automotive manufacturers, in association with dealers and finance companies, have also successfully applied automated analytics at the point of sale to generate personalized financing and leasing options. The results: significantly increased customer consideration, closure, loyalty and advocacy.

Insurance Services

On-board telematics systems are encouraging insurance companies to reinvent their business. Telematics enables insurers to track actual vehicle usage, providing a sophisticated, unobtrusive method of gathering and evaluating relevant data, i.e. driving speed, acceleration, braking patterns and airbag deployment. With this factual information, insurers can make more accurate risk assessments, streamline their claims processing and, eventually, improve their bottom lines. In addition, by offering customers incentives for responsible driving, overall safety on the road will improve.

Local Governments

Connected cars are providing local governments with invaluable data to make informed and important decisions related to law enforcement, traffic management and public transportation. Some Smart City leaders are already taking advantage of the digital and physical convergence to efficiently and effectively manage their municipal systems. Initiatives like making parking faster and easier to find, cutting down on circling and helping reduce emissions. All while keeping paths clear for public transport.

 What are the Challenges Ahead for Connected Cars?

The average lifecycle of a car is about 10 years. Automaker’s need to take technology decisions today for connected cars that will go into production two to four from now.  For the cellular connectivity strategy to remain relevant over 12 to 15 years, significant challenges and assumptions need to be collaboratively addressed by OEMs, telematics control unit suppliers and service providers, namely:

  • Automakers must manage software in the field reliably, cost-efficiently and, most importantly, securely – not just patch fixes, but also continually upgrade and enhance the functionality
  • Cellular solutions need to be agile, to be compatible with emerging network technologies over the vehicle lifetime, e.g. 5G to be the industry standard in the next few years
  • The chosen solution must deliver reliable, seamless, uninterrupted coverage in all countries and markets where the vehicles are sold and driven
  • Solution developers must offer scalable, cost-effective ways to develop upgradeable software, that can be universally deployed across technologies, hardware and chipsets

As Connected Vehicles proliferate, the auto industry will need to adapt and transform itself to the growing technological dependency. OEMs and Tier-1 manufacturers must partner with technology specialists to thrive in an era of software-defined vehicles. As connectivity requires skills and capabilities outside of the OEMs’ domain, automakers will necessarily have to be software developers. An open platform environment will go a long way to encourage external developers to design apps for vehicle connectivity platforms.


Connected cars are indeed the next big thing in an ever-expanding, perpetually connected digital world. Automakers and adjacent industries need to urgently re-evaluate their interdependency and look at further ecosystem possibilities, to be in the forefront of realizing emerging multi-billion dollar revenue opportunities.

125 Million+ Connected Cars Shipments by 2022; 5G Cars by 2020

General Motors, BMW, Audi and Mercedes Benz are leading the global connected car market, as of 2017. The market is expected to get a major boost with EU’s eCall mandate and rising adoption in China.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – April 3, 2018

According to the latest research from Counterpoint’s Internet of Things Tracker service, the global connected cars market is expected to grow 270% by 2022 with more than 125 million connected passenger cars with embedded connectivity to be shipped during 2018-2022. The data only represents the global passenger car shipments with embedded connectivity and does not indicate number of active connections. In terms of number of units, the market will be primarily driven by EU’s eCall mandate and rising adoption in China. In Europe, major car consuming economies such as Germany, UK, and France will provide the major thrust to the market.


Commenting on the findings, Hanish Bhatia, Senior Analyst for IoT & Mobility said, “In terms of overall penetration, Germany, UK and US are leading the market at present with highest percentage of total shipments with embedded connectivity sold in 2017. Europe’s eCall mandate is expected to change the market dynamics with higher penetration across European countries. The adoption of eCall in Europe is expected to create ripples across other geographies thereby catalyzing the overall car connectivity ecosystem.”

Exhibit 1: Global Connected Car Shipments % Share 2017 – by Brand

(passenger cars with embedded connectivity only)

Global Connected Car Shipments % Share 2017 – by Brand

Discussing on the brands performance, Hanish Bhatia further highlighted, “General Motors is leading the market in terms of number of shipments, followed by BMW, Audi and Mercedes Benz, respectively. The connectivity platforms such as GM’s OnStar, BMW’s Connected Drive and Audi Connect are offering various services while creating new revenue streams and bridging the gap to stay connected with the consumers. Together, these brands account for more than 90% of the total connected passenger cars with embedded connectivity sold in 2017”. “Also, much talked about US-based car maker – Tesla, continues to offer embedded connectivity across its’ portfolio”, he added.

Looking at the connectivity technology, Neil Shah, Research Director at Counterpoint Research said, “The market is more aligned towards 2G/3G networks as of now, however, it is moving swiftly towards 4G LTE connectivity and we expect 4G LTE network to account for nearly 90% of connected passenger cars with embedded connectivity by 2022. Further, we expect 5G connectivity in cars to kick-in from 2020 onwards, however, the overall penetration is likely to remain low till 2022. The progress on the levels of autonomous technology in a car will also dictate the usage of 4G or 5G technology embedded in the cars beyond 2022 when 5G coverage rollout becomes ubiquitous. Further, 5G NR (Standalone or SA) mode rollout which promises lower latencies will be critical for driving an inflection point in commercialization of autonomous cars later in the next decade.”

Exhibit 2: Global Connected Car Shipments % Share 2017-2022 – by Country

(passenger cars with embedded connectivity only)

Global Connected Car Shipments % Share 2017-2022 – by Country

Market Highlights:

  • The global connected cars market is expected to grow 270% by 2022 with more than 125 million connected passenger cars with embedded connectivity to be shipped during 2018-2022
  • In 2017, China and US accounted for nearly 45% of the total shipments. China alone accounted for 32% of the shipments. This is primarily due to a significantly bigger passenger car market in China.
  • In Europe, major economies including Germany, UK, France, and others are expected to touch nearly 100% connected car penetration by 2020, with early adoption kick-in due to eCall mandate
  • In case of top brands, General Motors is leading the market with its OnStar platform offering connectivity across geographies
  • After GM, premium car brands BMW, Audi and Mercedes Benz are leading the market. Together, these brands accounted for 90% of connected passenger car shipments with embedded connectivity in 2017
  • Japanese car OEMs are still behind the curve on embedding cellular connectivity within their cars but should be able to grow faster as they scale faster
  • In terms of connectivity, 2G/2.5G remains dominant connectivity platforms globally, followed by 3G in 2017

However, 4G is likely to gain traction and account for nearly 90% of connected car connections globally. In case of 5G, Japan and South Korea are expected to lead the market with higher penetration as compared to other markets.


The comprehensive and in-depth ‘Global Connected Car Tracker 2018’ is available for purchase at Please feel free to reach out to us at press(at) for further questions regarding our in-depth latest research, insights or press enquiries.

The Counterpoint’s Internet of Things Market Tracker research for Connected Cars is based on total shipments estimates based on company’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.


Analyst Contacts:

Hanish Bhatia
+91 9871849857


Satyajit Sinha


Neil Shah
+91 9930218469


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