‘Off-the-Shelf’ eSIM Provisioning Software Gaining Momentum

eSIM has been a revolutionary technology driving the digital transformation of acquiring, accessing and consuming connectivity. OEMs are offering eSIM capability at the device level, while eSIM management solution vendors are offering software and services to mobile operators to connect these eSIM-capable devices to eSIM platforms securely.

The benefits of eSIM technology lie in enabling secure and seamless connectivity from chip to cloud, leading to an array of new business models for a broad range of stakeholders. This includes transforming mobile operators, making connected enterprises “fully digital”, thereby reducing overheads, customer acquisition costs and complexities, boosting customer experience, and driving newer business models connecting people and things at scale.

Demand for eSIM management solutions growing across different stakeholders

esim technology

eSIM adoption is growing swiftly across different device categories and stakeholders. Mobile operators, enterprises, service providers and even platform players are sourcing innovative eSIM solutions to go digital, expand their service offering, maintain redundancy, plan hybrid deployments to comply with local regulations, or address specific subscriber or device segments. For example, players such as Uber are climbing on the eSIM bandwagon to drive newer business models and remove customer pain points by offering uninterrupted connectivity. Private networks are adopting eSIM to offer dedicated connectivity to their employees and remotely manage the connected IoT assets within the enterprise premises.

Different flavors of eSIM management solutions

The incumbent SIM vendors have been delivering eSIM management solutions in the form of ‘eSIM-Management-as-a-Service’ as an extension of their existing SIM business model, with the storage and processing of the subscriber data usually managed by the vendors at their own sites or now in collaboration with third-party cloud platforms such as Azure, AWS and Google Cloud. However, in such traditional deployments, the customers, especially other Service and Solution Providers have very limited commercial and technical control over the eSIM-based subscription management and customer data.

While this has been the established method of eSIM management solution delivery during the early years, which saw very limited eSIM usage, the competitive, geopolitical and regulatory landscape is changing. As eSIM technology has matured with a clear path ahead to replace the SIM card, operators as well as service and solution providers are increasingly either considering developing their own eSIM management software or licensing it “off the shelf” and building a service on top of it.

Developing software and service “in-house” demands significant resources and domain knowledge, from software to standards to security. This makes the exercise incrementally expensive amid changing technologies and regulations. Therefore, using an off-the-shelf eSIM management software is emerging as a popular solution, offering the best of both worlds, i.e. in-house and as-a-service eSIM management solutions.

achelos GmbH, an important player in the eSIM value chain, is positioned to satisfy the abovementioned needs. The company offers a suite of off-the-shelf GSMA-compliant eSIM RSP software solutions with bespoke features and extensions that perfectly align with the different requirements of a broad range of players, whether MNO, private network operator, service provider or system integrator. They fill a gap in the booming eSIM RSP market, helping democratize the technology by offering eSIM solutions to potential stakeholders looking for eSIM provisioning capabilities integrated directly into their existing platforms or infrastructure at the software level rather than the traditional as-a-service solution.

eSIM technology management solutions: eSIM Provisioning Software
Source: Counterpoint Research Global eSIM Management Deployment Tracker

In our discussions with multiple operators and stakeholders, the key needs and challenges mentioned are related to having more control, independence over costs, technology, integration, and data to manage the number of connected devices and connectivity on their networks. This is where off-the-shelf eSIM management software solutions are looking to help eliminate the significant cost, risks, resource requirements and compliance requirements. However, with the growing trend of sourcing multiple eSIM management and orchestration solutions, we believe the off-the-shelf software is a nice complement to the traditional as-a-service eSIM solutions, allowing these key stakeholders to strike the right balance between control and flexibility.

Firms such as achelos started as niche players, with a highly focussed “software-only” approach offering flexible, customizable off-the-shelf GSMA SAS-SM-compliant eSIM remote SIM provisioning and orchestration software solutions. These complement or offer an alternative to traditional as-a-service solutions by promising proof points across the following key criteria:

  • Reliable: Redundancy, up-time, backup, recovery, security, resilience, etc.
  • Scalable: With growing traffic across locations, device types, features, etc.
  • Compliant: GSMA standards, specs, interoperability, etc.
  • Comprehensive: Support different implementations – SM-DP, DP+, DS, etc.
  • Efficient: Costs, resources, implementation, time-to-market, etc.
  • Seamless: Architecture, orchestration, openness, cloud, BSS/OSS integrations
  • Customizable: Features, services, deployments, UI, analytics to help differentiate

Furthermore, having access to an end-to-end suite of eSIM RSP and orchestration software and capabilities helps potential stakeholders co-develop distinctive features and services on top of the standards efficiently, with full control over security, scalability, and costs.

The key to success with this approach is in having a software partner which embraces open, lightweight, and advanced tools, frameworks and processes. This makes it seamless for the stakeholder’s IT team to co-create unique solutions built on industry standard-compliant and interoperable foundations.

Wrapping up

As the eSIM adoption rises across key stakeholders beyond mobile operators, there are significant opportunities for the vendors providing eSIM solutions in different forms. Different stakeholders have different needs, influenced by their digital transformation journeys, regulations, and need for redundancy or control over the solution and services attached to it.

As a result, we are seeing growing need for off-the-shelf eSIM solutions where some stakeholders want greater control, commercial independence, and sovereignty of the platform alongside the traditional ‘eSIM-Management-as-a-Service’ solutions. Players such as achelos are well positioned to complement and expand the eSIM solution provider ecosystem for the different key stakeholders in their eSIM transformation journey.

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US Feature Phone Market Stages Comeback as Gen Z, Millennials Advocate Digital Detox

  • The US feature phone market is more crowded and competitive now as OEMs enter agreements with carriers. 
  • Feature phone sales are forecast to reach 2.8 million in 2023 with stable sales continuing in the near term. 
  • New hardware configurations like eSIM or NFC can make devices more relevant for today’s consumers. 

Feature phones have made a resurgence due to digital detox and Gen Z/millennials  

Feature phones in the US market have made a resurgence as Gen Z and millennials are advocating for digital detoxes due to the mental health concerns brought on by smartphones and social media. Hashtags like #bringbackfliphones on TikTok have garnered millions of views leading to the increased adoption of feature phones by younger consumers looking to adhere to movements like digital detoxing, minimalist lifestyles and unplugging. Given the relatively cheap price point of feature phones ($20-$50 with a prepaid carrier and $50-$100 unlocked), more people are trying out these devices and sharing their experiences on social media.  

The market is more crowded now, TCL and HMD are leading but competition from Schok, Sonim, and white-label makers like Tinno are entering agreements with carriers 

Smartphones were widely adopted almost instantly when they arrived. Due to this, the US feature phone market shrank significantly over the past 10 years. Currently, the feature phone market contributes to only a little more than a 2% share of overall handset sales in the US. Among the players catering to this segment of the market, TCL, which manufactures feature phones for major carriers in both branded and white-label capacities, leads the pack with a 43% share due to its strong presence on carrier channels. HMD ranks second with a 26% share, while other smaller players make up for the rest of the market. 

Additionally, carrier and OEM tie-ups play an important role in the dynamics. The big three US carriers – AT&T, Verizon and T-Mobile – are exploring different feature phone OEM options due to which the US feature phone market has grown more crowded lately, especially with carriers moving away from TCL devices and trying out smaller OEMs instead, like Tinno and FIH which have manufactured devices for AT&T’s white-labeled feature phones. Sonim and Kyocera, which provide ruggedized devices, are Verizon’s feature phone brands, while Schok and hot pepper are T-Mobile’s.  US feature phone marketFeature phone sales are forecast to reach 2.8 million in 2023 with continued stable sales in the near term as niche demand drivers maintain sales

Feature phones still hold their place in the market and are likely to see consistent shipments, helped by their affordability and durability to suit specific use cases. Although the growth in numbers may not be huge, the demand from consumers looking for a feature phone as a digital detox mechanism will continue. Additionally, B2B sales may drive some demand as feature phones simplify costs for businesses. Furthermore, tourists and other consumers needing a cheap disposable feature phone will also continue to keep sales stable.

New hardware configurations like eSIM or NFC can make devices more relevant for modern consumers wishing to simplify their tech gadgets but still interact seamlessly in the digital world

There is a consumer base looking for devices that are minimalistic but also have features that are relevant to staying connected in today’s world. The design and specifications of feature phones have not changed much over the last few years. This is one of the factors that keep consumers from purchasing a feature phone. The addition of some new hardware configurations and features that are abreast with the current trends while still maintaining the simplicity of usage may open more gates for the growth of feature phones. NFC is one such feature. NFC can enable payments, home automation, quick pairing, and make public transport access more convenient for users. Similarly, eSIMs may also be a great hardware integration as it may attract consumers to adopt a feature phone as a companion device that they can easily switch to from their main device in situations where they do not want to bring out their expensive smartphone. Adding these attributes would help make feature phones more relevant for day-to-day use.

See the full report below for more information:


US Feature Phone Trends and Outlook in the Age of Smartphones

The US feature phone market has seen a recent resurgence with Gen Z/Millennials advocating for digital detoxes due to mental health concerns. While TCL and HMD remain the dominant OEMs in the US, challenger brands are making the market more crowded. Feature phones will remain an important part of the US handset market for years to come as they continue to solve for niche needs that smartphones cannot address.

Number of Pages: 18

  • Key Takeaways
  • Current Market Dynamics
    • Feature Phone Volumes by Year
    • Current Market Drivers
    • Market Share by OEM
    • Postpaid and Prepaid Market Share by OEM
  • Specification Analysis
    • Current Feature Phone Specifications and Market Innovations
  • Feature Phone Outlook
    • Market Forecast until 2027
    • Future Trends and Specifications

Contact Us Read More


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MediaTek to Focus on Automotive, Edge AI for Growth

  • The company saw a slight growth in Q2 revenues due to the improving demand for 5G SoCs.
  • Inventory came down to a relatively normal level.
  • MediaTek and NVIDIA have tied up to develop a full-scale product roadmap for the automotive industry.
  • Significant revenues are expected to be seen for MediaTek’s auto and custom ASIC segments from 2026.

MediaTek’s revenues were slightly up sequentially but down 43% annually in Q2 2023. Inventory has gradually come down to a relatively normal level, but the demand for smartphones will remain slow due to the global macroeconomic situation and the refurbished smartphone market. Against this backdrop, MediaTek is diversifying its portfolio by focusing on the auto, smart edge and custom ASIC segments. The company is estimated to take over two years to get material revenues from these segments.

AI and ASIC Opportunity

CEO: “As for ASIC, we recently see growing enterprise ASIC business opportunities in AI and datacenter markets. With our strong IP and SoC integration capabilities, we aim to continue to grow this business in the future.”

Parv Sharma’s analyst take: “With the growth in generative AI, the demand for edge AI processing has accelerated. Being one of the top players in edge devices, MediaTek is well-positioned to benefit from this shift. The company will focus on winning enterprise ASIC projects but catching up with major players like Broadcom and Marvell will take time, as customers typically work with existing suppliers for repeat projects.”

Growing focus on auto and partnership with NVIDIA

CEO: “We’re very excited about the recently announced partnership between MediaTek and NVIDIA to develop a full-scale product roadmap for the automotive industry. We believe our industry-leading low-power processors and 5G, WiFi connectivity solutions, combined with NVIDIA’s strong capability in software and AI cloud, will help us become highly competitive in the future connected software-defined vehicles market and shorten our time to market to accelerate our growth.”

Shivani Parashar’s analyst take: “MediaTek launched Dimensity Auto to focus on cockpit and connectivity solutions. With its partnership with NVIDIA, the company aims to develop a full-scale product roadmap for the automotive industry. Auto design cycles are long so it will take some time (2026-2027) for the company to increase revenues from this segment. Overall, we can say the auto segment will become a long-term revenue growth driver for MediaTek.”

Customer and channel inventories come down

CEO: “We observed that customer and channel inventories across major applications have gradually reduced to a relatively normal level. Recent demand from our customers has shown certain level of stabilization. However, our customers are still managing their inventory cautiously as global consumer electronics end market demand remains soft. For the near-term, we expect our business to gradually improve in the second half of the year”

Shivani Parashar’s analyst take: “According to our supply chain checks, inventory levels are coming down and will get back to normal in the second half of 2023. OEMs will start restocking but will be cautious due to weak consumer demand and global macroeconomic conditions.”Mediatek revenuesResult summary

  • Slight improvement in revenues: MediaTek recorded $3.2 billion in revenues in Q2 2023, a slight increase of 2% QoQ but a decrease of 43% YoY due to the weak global demand for end products and the second-hand smartphone market. Customer and channel inventories across major applications have come down to a relatively normal level.
  • Maintained mobile segment revenue due to 5G SoCs: The mobile phone segment contributed 46% to the company’s revenue in Q2 2023, which declined by 51% YoY and increased by 2% QoQ. The demand for 5G SoCs improved during the quarter. The new flagship Dimensity SoC will be launched in the coming month.
  • New opportunities for smart edge: The smart edge segment contributed 47% to the company’s revenue in Q2, growing 2% sequentially. The demand for connectivity remained stable in the quarter. Business opportunities are growing for the ASIC segment.
  • Price discipline: MediaTek will focus on maintaining gross margin, following price discipline at a time of uncertainty in the global semiconductor industry.
  • Favorable guidance: MediaTek guided Q3 revenues in the range of $3.3 to $3.5 billion, growing 4%-11% sequentially. Gross margins are expected to be around 47% while the operating expense ratio is expected to be around 32% in Q2 2023. The smartphone, connectivity and PMIC segments will see revenue growth. The smart TV segment will witness declining revenues in the third quarter due to excess inventory.
  • Auto segment is picking up: Automotive will contribute $200 to $300 million to MediaTek’s revenue in 2023. More significant revenue can be seen from 2026. The current auto design pipeline revenue for MediaTek is over $1 billion.

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Global Smartphone Market Declines for Eighth Straight Quarter; Premium Segment Growth a Silver Lining

  • Global smartphones sell-through declined 8% YoY and 5% QoQ in Q2 2023.
  • Samsung led the quarter with healthy A-series demand as Xiaomi and vivo faced headwinds.
  • Apple came in second with its share growing to 17% despite unfavorable seasonal factors.
  • Premium segment demand remained resilient, with the segment’s share reaching a Q2 record.

The global smartphone market’s sell-through declined 8% YoY and 5% QoQ in Q2 2023, according to the latest research from Counterpoint’s Market Pulse service. This was the eighth consecutive quarter to see a YoY decline.

Global smartphone market sell-through by key OEMs

Samsung led the market with a 22% market share, benefitting from the strong performance of its Galaxy A-series globally. Apple came in second while recording its highest-ever Q2 market share. Xiaomi, the third-largest brand, faced headwinds in its biggest markets – China and India. The brand is looking to offset such declines with expansion in other markets and by refreshing its portfolio. OPPO did relatively well in its home market China and India (thanks to OnePlus), managing to hold its global market share despite registering losses in Western Europe. vivo (including iQOO) saw major growth declines in China after a strong Q2 last year as well as strong competition from Samsung, and OPPO in the offline markets of India and Southeast Asia.

The global smartphone market now seems to be well past its rapid growth phase, with consumer replacement cycles getting longer, convergence in device innovation, and the emergence of a more mature refurbished market for smartphones hitting particularly the higher-volume low-to-mid-tier price segment demand.

The premium segment ($600+ wholesale price), however, continues to grow immune to broader constraints, as the mature consumer is opting for a superior experience, supported by the easy availability of finance options across key geographies. The premium segment was the only segment that grew during the quarter, reaching its highest-ever Q2 contribution to the overall market. More than one out of five smartphones sold during the quarter belonged to the premium segment.

Apple is riding this “premiumization” wave, reaching record shares in multiple new markets which are typically not considered its core markets. A prime example is India, where it grew 50% YoY in Q2 2023. The continued strong performance of the premium segment has made sure that revenues don’t suffer as much as sales volumes, which is why brands are investing in market expansion and innovation in newer technologies.

All regions worldwide saw a contraction in sales, but the biggest decline was seen in relatively more developed markets such as the US, Western Europe and Japan, all of which recorded double-digit annual declines. The markets in China, India and Middle East & Africa declined relatively less. OEMs and channels looked to clear the excess inventory built up in the market by leveraging promotions and “big sale” festivals. For example, the postpaid carriers in the US rejigged their unlimited bundled plans to offer more flexibility to consumers. But the demand remained weak amid higher interest rates impacting the disposable income of American households. In China too, the premier sales event of “618”, which is spread over several weeks, saw lukewarm reception despite aggressive promotions. However, the event was able to arrest the decline in the smartphone market in China and, indirectly, globally in June.

However, it is not all gloom and doom for the smartphone industry. According to our Smartphone Inventory Tracker, the global smartphone inventory (sell-in vs sell-through) has been reaching healthy levels over the past four to five months, allowing OEMs some breathing room to launch and push newer models in the second half and attract consumers to upgrade, and accelerate the replacement cycle.

We expect the market to recover slowly in the coming quarters.


Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

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How Competition is Driving Innovation in the EV Battery Market

Electric vehicle (EVs) have emerged as a focal point of realizing eco-friendly policies across the world. Increasingly, automobile OEMs recognize that the future of their products lies outside the ecosystem of internal commercial engines (ICE). As a result, they are tweaking their business models to be future ready.

For EVs, the most crucial component is the battery. No wonder then that competition is getting fiercer among global automobile OEMs and battery manufacturers to get a hegemony over the EV battery market. However, this competition is also yielding technological breakthroughs.

In the automotive paradigm, lithium-ion battery technology stands at the center of innovation. There has been a significant amount of progress in the improvement of lithium-ion battery technology. Here, we provide a brief overview of some of these developments and what the future holds.

NCM 811 just around the corner

Battery cell manufacturers are spending heavily on R&D for improving the energy density of lithium-ion batteries. Although the speed of improvements has been slow, gradually, lithium-ion batteries have helped increase the driving range of EVs by utilizing high-energy source materials and improving the per-unit cell size. There have been considerable efforts to boost the nickel portion of total cathode materials. Most of the top battery players have announced their plans for commercialization/mass production of NCM811 by 2019-2020. NCM811, which contains 80% nickel, 10% cobalt and 10% manganese, has a much longer lifespan and allows EVs to go further on a single charge. In April, CATL mentioned it had begun mass production of the NCM811. Recently AESC, acquired by Envision Group from Nissan, also announced its plan to produce NCM811, which promises more than 300Wh/Kg and 600-650Wh/L in 2020.

Solid-state batteries coming next

Battery companies have been introducing a roadmap for solid-state battery technology as the next-generation technology and exhibited various innovative products as well. In theory, solid-state batteries have a lower risk of electrolyte being exposed or exploding due to physical shock. This is because solid-state batteries adopt a solid electrolyte made of polymer or ceramic materials instead of the liquid electrolyte used in current lithium-ion batteries. Thanks to their high performance at elevated temperatures and high capacity, solid electrolytes are a technology that could further boost energy density. Interestingly, automobile OEMs seem to be taking a more proactive approach towards the R&D of the solid-state batteries. So far, Toyota ranks first in the number of patent applications for solid-state batteries. Last year, Volkswagen announced it would invest US$100 million in solid-state battery maker QuantumScape to mass produce the product by 2025.

Exhibit 1: Battery energy density & EV range on the rise

Battery energy density & EV range on the rise

Falling battery prices

The falling prices of battery cells and packs are also fueling the penetration of EVs. EV battery cell and pack prices were estimated to be US$140-US$150 per kWh and US$170-US$180 per kWh respectively, at the end of 2018. Thanks to economies of scale that battery cell makers will experience with energy density improvements, the price per kWh will keep falling further. By 2025, we predict EV battery cell and pack prices would fall below US$80 per kWh and US$100 per kWh respectively. This implies the cost will decline around 10% per annum. Consequently, the battery pack, which currently accounts for 30-40% of EV manufacturing costs, will make EVs cheaper than equivalent internal combustion engine (ICE) vehicles after 2025. With more countries moving to phase out ICE vehicles and more automobile OEMs rolling out EV fleets, the price drops should trigger explosive growth in EV demand. Ultimately, this will form a virtuous cycle.

The massive leap in the market size

According to Counterpoint Research’s Smart Automotive Research, passenger EVs will exceed 11 million units (including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs)), by 2025, and many steps in the new value chain are up for grabs. After 2025, EVs will be expected to cost the same or lower than conventional ICE vehicles, offering new opportunities for automobile OEMs and battery players. Not only is the EV market growing, but sales-weighted average battery capacity per EV is also on the rise. Accordingly, we expect the passenger EV(BEV/PHEV) battery pack market will expand to over 600 GWh by 2025 and generate nearly US$60 billion in revenue.

Ramping up production capacity

Leading battery manufacturers including CATL, Panasonic, LG Chem, Samsung SDI, and SK Innovation are fighting to win orders from global automobile OEMs. In doing so, they are also providing an excellent stimulus to each other. We do not see it as meaningful for battery vendors to line up order backlogs as long-term orders are generally flexible in terms of sales volume and price and depend on the market situation. Instead, it is essential to get a picture of ramp-up plans for the entire industry in order to track supply and demand movements going forward. Capacity expansions have accelerated sharply since the EV portion of global vehicle sales volume began to look significant. The cumulative capacity reached 129GWh at the end of 2018. We expect the cumulative battery production capacity for EVs to increase to nearly 800GWh by 2025, led mainly by the expansion of the top players.

No significant changes in the competitive landscape before 2025

Unlike other technology products, batteries are customized components. EV batteries, especially, need to be precisely optimized for each EV right from the product development stage to get optimum power and safety management. As the EV battery business requires a long history of competitiveness in such product development along with mass production experience, the industry has a high entry barrier. That is why we expect existing top players will continue to lead the market, and there will be no significant change in the competitive landscape for a while.

But, what about automobile OEMs who are willing to take battery cell technology and production into their own hands? At the initial stage, we believe that they will have to depend on long-term battery supply deals from multiple battery vendors. The long-term contracts will help to clear supply bottlenecks at a time of soaring demand and hold out the promise of cheaper batteries over time. Automakers will also have flexibility in supply for potential emergency scenarios and encourage competition among vendors to get better prices. In the meantime, they will attempt to internalize EV battery manufacturing based on the know-how and R&D accumulated through acquisitions or benchmarking a battery vendor in an exclusive partnership. When the time comes for the market focus to shift from the current lithium-ion batteries to solid-state batteries after 2025, the industry could look very different.

Exhibit 2: Global EV battery suppliers and auto OEMs

Global EV battery suppliers and auto OEMs

You can click here to download the full report on “How Competition is Driving Innovation in the EV Battery Market” from our Research portal.

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.

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– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.