By Paul Burnley, Senior ITS and Telematics Specialist

Driven by demand from consumers, the US market is currently the most competitive arena for OE telematics systems globally. The number of manufacturers bringing connectivity to their vehicles is increasing all the time and those with existing telematics systems are launching new services to keep themselves at the cutting edge. Competitive pressure is forcing other vehicle manufacturers to enter the market to avoid being perceived as technology laggards by potential customers.

While most OE telematics systems in the US retain a focus on traditional safety and security services, the number of connected navigation services is growing. As the breadth of available services grows, competition is driving down the cost of these services to the end user.

BMW and Ford both offer extended subscription-free periods to new vehicle owners - the challenge for other vehicle manufacturers will be whether they can compete and whether the US consumers’ willingness to pay for safety and security services will come to an end.

As well as the variety in the services offered and how they are delivered to the customer, there is also diversity in the business goals that vehicle manufacturers have for their telematics programs. Some manufacturers are promoting their telematics capabilities in order to sell more vehicles. GM has refined and promoted OnStar’s capabilities over 14 years of operation but the core features remain safety and security-focused. Ford has taken a bold approach with SYNC and is trying to make the services and branding “cool” rather than focus on safety and security features.

This report presents a summary of the vehicle manufacturer telematics services available in the US today or planned for the near future. It provides an overview of the individual services offered by each OEM and highlights key players within the telematics value chain comprising in-vehicle hardware suppliers, mobile network operators, telematics service providers and call centre operators. Looking beyond the simple facts, this report will enable the reader to analyse the key market trends and understand the differences between vehicle manufacturers’ telematics strategies.

For more information on An analysis of the telematics value chain in the USA please contact Juanita Appleby on jappleby@sbd.co.uk