Connected Vehicles in China to Triple in 5 Years Predicts One Firm

Despite recent stumbles in the Chinese manufacturing and financial sectors, one company is predicting that connected vehicle technology in China will triple in five years – by 202.

The group, Frost & Sullivan, noted: “Positive economic growth, infrastructure development and urbanization, smartphone subscriber expansion, and real-time traffic data are set to fuel explosive growth in the Chinese automotive connected services industry.”

It also noted that the launch of the Beidou navigation satellite system is facilitating the deployment of road information services and opening up further market opportunities for existing and new connected services providers.

According to the company, the number of vehicles fitted with original equipment (OE) telematics stood at 1.3 million units in 2014. Installations are expected to triple, reaching 4.2 million by 2020.

“Embedded navigation systems will gain traction in mid- and entry-level vehicles,” said Frost & Sullivan Automotive and Transportation Research Analyst Chan Ming Lih. “Offering mainstream Chinese infotainment and an eCommerce service platform along with Beidou integration will fast-track the largescale adoption of automotive connected services in China.”

“Security, maintenance alerts, automated driving and over-the-air updates will jump to the top of customer requirements,” determined Ming Lih. “Real-time location-based services and diagnostic solutions will form a crucial component in future connected service platforms.”

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