In-car connectivity: huge potential remains untapped Providing in-car connectivity is going to be essential for every carmaker, but the industry is still looking for viable business models. The global telematics market is poised to grow exponentially in the future, with approximately 104 million new cars expected to have some form of connectivity by 2025: • Penetration of global integrated telematics to touch 88% EY’s Global Automotive, Telecom and Insurance for new cars by 2025, while that of tethered telematics Centers have developed this telematics blueprint to flatten around 28% with the aim of: • Penetration of integrated telematics to be driven by • Defining the telematics ecosystem and its growing importance of smartphones and regulations for components, including market needs, services, driver safety infrastructure and stakeholders • US to continue its lead with sales of approximately • Identifying commercially viable business 16 million new cars with embedded telematics by 2025 strategies and the associated risks, rewards and • EU, Japan and BRIC nations present huge potential, considerations for stakeholders primarily due to upcoming regulations • Evaluating the position and future role of the automotive, telecom and insurance sectors in Evolution of automotive telematics this emerging ecosystem Hands-free calling and screen-based • Analyzing differences in telematics strategies Telematics navigation across the ecosystem through business model 1.0 case studies Telematics Portable navigation and satellite radio “ Soon you will not be able to make money 2.0 anymore with cars that don’t integrate Introduction of comprehensive connectivity customers’ smartphones.“ Telematics to the vehicle 3.0 — CEO, premium global carmaker Seamless integration of mobility and the Telematics web – the biggest opportunity yet 4.0 “ When we look at the car, we see another smartphone.” Source: 2025 Every Car Connected: Forecasting the Growth and Opportunity study, by SBD and GSMA, published in 2012 — President, global telecommunications company