Connected car platforms increasingly supporting telematics services in light vehicles

Most automakers today have either kept their telematics service management in-house – like telematics service provider OnStar, which is wholly owned by GM – or else they have integrated it into their organization at a corporate level – like Volvo’s ownership stake in WirelessCar. However, the connected car market is changing rapidly, which is presenting exciting new opportunities for merchant-market connected-car platform vendors – enabling beneficial new service possibilities for drivers and passengers, alike.

The first key market change is that automakers are increasingly willing to work with third-party merchant-market connected-car platform vendors. For example, PSA partnered with Huawei to use Huawei’s OceanConnect platform, in order to enable its telematics service in the Chinese market. Likewise, Mitsubishi is working with Aeris on its telematics service in the United States.

The second change is the accelerating pace of technological change in the overall automotive industry. Automakers are moving beyond stolen vehicle recovery and other traditional telematics services and are now developing electric drivetrains, autonomous vehicle operation, and exploring mobility-as-a-service offerings. By supporting these advanced efforts, merchant-market-connected car-platform vendors can more easily forge relationships with automakers, in addition to supporting traditional telematics services.

The third change is the development of increasingly advanced data-monetization capabilities as a key telematics-service functionality. Automakers are not only using data from connected cars for internal capabilities, but they also often seek to work with insurance companies, and other third-party service providers, to make driver behavior and other car data available. That way, drivers and passengers have access to new types of services, like usage-based insurance. Merchant-market connected-car platform vendors are in a prime position to serve as “neutral servers,” facilitating secure data exchange between automakers and service providers.

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