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Navigation Systems Lead the Automotive Connected Services Market in China Finds Frost & Sullivan - The launch of the nation’s Beidou navigation satellite system forms the bedrock of independent telematics innovation - Frost.com
Navigation Systems Lead the Automotive Connected Services Market in China Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Hong Kong, Hong Kong, 2015/09/08 - The launch of the nation’s Beidou navigation satellite system forms the bedrock of independent telematics innovation - Frost.com.

   
 
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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. 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.

New analysis from Frost & Sullivan, The Chinese Automotive Connected Services Market, finds that 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,” saidFrost & 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.”

In this budding market, weak consumer knowledge and experience is inevitable. The deep-rooted presence of the portable navigation devices market limits the demand for connected services. Less-expensive aftermarket solutions too edge out OE-fitted connected services in terms of consumer preference.

While Chinese consumers are more likely to support well-known international brands, local manufacturers are aggressively implementing their own automotive connected services strategies and gradually garnering market share. Strong promotional campaigns by global and domestic vendors looking to cash in on the immense market potential in China will improve customer purchasing decisions.

“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.”

Consistently building innovative technologies and achieving economies of scale through mass production will help global and regional suppliers meet the rising expectations of end users in the Chinese automotive connected services market.

The Chinese Automotive Connected Services Market is a Strategic Insight that is part of the Automotive & Transportation Growth Partnership Service program. This Insight provides market trends, drivers, challenges and forecasts for the automotive connected services market in China. The research also offers a detailed market share and competitive analysis evaluated following extensive interviews with market participants. Frost & Sullivan’s related studies include: Chinese Light, Medium and Heavy-Duty Commercial Truck Market, Strategic Analysis of the Chinese Automotive Aftermarket, and Strategic Analysis of Chinese Powertrain Market.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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The Chinese Automotive Connected Services Market

 
 
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Navigation Systems Lead the Automotive Connected Services Market in China Finds Frost & Sullivan

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Frost & Sullivan | Navigation Systems
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