OYSTER, BAY, NY – After 2020, 4G will be the leading connection technology for OEM telematics revenues, says ABI Research.

“In the United States, Japan and Korea, 4G will lead revenue generation. But interestingly it will take until 2018 and into 2019 for 4G to carry the majority of the data traffic driving OEM telematics revenues,” said VP and IoT practice director Dan Shey. “In India, 2G will stay the dominant telematics network carrier for the next five years. China’s revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020.”

Today, professional services, including hardware and software integration, consultancy, and project management, generate the majority of global IoT supplier revenues. But by 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead, says the firm. Data and analytics revenues will also become a major revenue generator later in the forecast period, exceeding connection, security and network services revenues.

“By 2020, the connected car supply chain will start seeing some dramatic shifts, which are reflected in the changing revenue ratios between the different service categories in ABI Research’s IoT Market Tracker,” said VP and automotive practice director Dominique Bonte. “Open source hardware reference platforms, third-party mobile ecosystem integration, and the shift toward cloud-based approaches will start eating into traditional Tier 1 professional service revenues, forcing vendors such as Harman, Bosch and Continental to move into new areas and competences, including data analytics, OTA and security monitoring services.”

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