The telecom analysis report comes at a time when Indian telecoms such as Bharti Airtel, Idea Cellular, Vodafone, Reliance Communications and Tata Docomo are focusing more on expanding their 3G networks. Both Reliance Jio Infocomm and Bharti Airtel will also be competing in the 4G LTE space.
Globally, 4G networks will overtake 3G to lead as the connection technology for OEM telematics revenues after 2020.
ABI Research says automakers prefer 4G LTE networks to power the connected car.
At present, 3G networks carry the data driving the majority of its global telematics and infotainment services revenues. This is despite the wide-spread expansion of 4G networks.
ABI Research says verticals with long product lifecycles, such as automotive, show delayed uptake of 4G due to slower penetration into the installed vehicle base, according to ABI Research’s IoT Market Tracker.
In the United States, Japan and Korea, 4G will lead revenue generation. It will take until 2018-2019 for 4G to carry the majority of the data traffic driving OEM telematics revenues. In India, 2G will stay the dominant telematics network carrier for the next 5 years. China’s revenue segmentation is similar to India but crosses to 3G driving the most revenues in 2020.
The report said professional services including hardware and software integration, consultancy, and project management generate the majority of IoT supplier revenues. By 2019, revenues from OEM telematics platform vendors such as Ericsson, Verizon, Wireless Car and Airbiquity will take the lead. 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 shifts. Open source hardware reference platforms, third party mobile ecosystem integration, and the shift towards 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.