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Electric Vehicle Telematics Market Will Reach $1.4 Billion by 2017

For early plug-in electric vehicles one of the key features for customers is not a component of the drivetrain, but rather, the telematics package.

Giving the driver the ability to check on the battery and the rate of charge, telematics serve as a lifeline of sorts to help alleviate concerns over the limited range of electric vehicles (range anxiety).

In addition, many manufacturers are developing applications that can provide details on where the closest charging stations are within range of the current battery level of charge.

Nearly nine out of ten plug-in electric vehicles sold this year will include at least a basic telematics package, and that percentage will likely grow to 94% by 2017, according to a new report from cleantech market intelligence firm Pike Research.

Annual revenue from worldwide sales of electric vehicle telematics will total $1.4 billion by 2017, forecasts Pike Research.

A key group of players in the electric vehicle telematics supply chain will be wireless equipment manufacturers coming from outside the automotive industry, who are accustomed to more compressed product development timeframes than the carmakers use.

“The hardware manufacturers are experiencing a bit of a culture shock,” says senior research analyst Dave Hurst, “as automotive development generally targets an 8 to 10-year lifespan, compared to a 2 to 3-year lifespan for other wireless devices. For this reason, despite the fact that much of the data being transferred in plug-in electric vehicle telematics can be done easily with a slow GSM connection, most hardware manufacturers are targeting 3G services with their modems to ensure compatibility with the wireless network long term.”

In addition, while basic telematics packages that offer simple data connections for emergency services, breakdown calls, charging station locations, and diagnostics/vehicle monitoring will be standard features on most plug-in electric vehicles by 2017, many consumers will want more elaborate, connected vehicle telematics, which can provide live traffic, weather, streaming content, and cloud computing-based applications.

Pike Research’s analysis indicates that, by the end of the forecast period, 80% of plug-in electric vehicles will come with connected vehicle systems installed. Those costlier packages will push average revenue per user (ARPU) for electric vehicle telematics to $13.27 by 2017, up from $10.65 today.

Dec 19, 2011Blagojce Krivevski
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Blagojce Krivevski

Blagojce Krivevski is physicist and green technology lover. Keep in touch with Blagojce through his email, web site, Twitter, Linkedin, Facebook and Google+.

December 19, 2011 Electric Car Newselectric vehicle, Electric Vehicle Telematics, electric vehicles, Pike Research, Plug-in electric vehicle, Plug-in Electric Vehicles, Telematics
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