Growth in Embedded OEM Telematics Forecasted
Berg Insight anticipates that the number of connected cars equipped with embedded OEM telematics systems will reach 580 million by 2030. This projection underscores the increasing significance of factory-installed vehicle connectivity within the automotive IoT landscape.
The conversation around connected cars often centers on various services such as remote diagnostics, software integration, usage-based insurance, fleet data analysis, and vehicle applications. However, a more strategic consideration for the IoT ecosystem involves the nature of connectivity: its integration into vehicles, its management, and its operational lifespan once the vehicle hits the road.
This is why Berg Insight’s latest forecast holds particular importance. The firm estimates that the global fleet of connected cars featuring embedded OEM telematics will expand to 580 million by 2030. This statistic is noteworthy as it highlights vehicles with telematics capabilities installed directly by manufacturers, as opposed to those utilizing aftermarket devices or smartphone connectivity.
The Importance of Embedded OEM Telematics
This distinction is crucial for IoT professionals because embedded OEM telematics fundamentally alters the operational framework. When connectivity is incorporated directly into the vehicle at the factory, the communications stack is intertwined with the car’s product lifecycle. This integration has implications for hardware sourcing, connectivity management, platform integration, cybersecurity, and long-term service support.
Berg Insight’s forecast sets itself apart from broader estimates of connected cars, which may combine various connectivity forms. A vehicle equipped with an embedded OEM telematics system signifies deeper integration between the automaker, vehicle electronic architecture, and the backend systems responsible for data exchange. For suppliers, this signifies a distinct market that differs from selling plug-in fleet tracking devices or consumer dongles, being more aligned with automotive design cycles, model platforms, and OEM-managed service environments.
Strategic Implications for Automotive IoT
The forecast of 580 million connected vehicles suggests that managing these systems will increasingly resemble a large-scale IoT lifecycle management challenge. These telematics systems are not intended for short-term industrial projects or replaceable asset trackers; they are affixed to vehicles expected to remain operational for many years, often evolving across changes in ownership, geography, and service subscriptions. This longevity introduces practical considerations regarding network availability, data governance, and support obligations, even if the forecast does not detail specific technologies.
For automakers, this forecast highlights how embedded connectivity is becoming integral to the baseline architecture of vehicles rather than a standalone premium feature. The commercial value extends beyond initial installation, focusing on the capacity to offer vehicle services over time. This reality places pressure on automakers to strategically align telematics hardware with software platforms, service operations, and regional connectivity strategies.
For connectivity providers, a large installed base implies that automotive accounts are increasingly about reliability, roaming arrangements, operational continuity, and support for long device lifetimes rather than just simple SIM card volume. Connected vehicles place unique demands on mobile operators and IoT connectivity platforms, affecting the ability to maintain service continuity across national borders and varying network technologies.
System integrators and platform providers encounter a more complicated landscape. Data from embedded OEM telematics differs significantly from data derived from aftermarket units, necessitating integration within automaker-controlled interfaces and service models. For enterprises and fleet operators, the rise of factory-installed connectivity may reduce the reliance on retrofit hardware, yet this does not automatically resolve issues related to access, data normalization, or workflow integration.
The broader implication is that the connected car market is becoming increasingly intertwined with mainstream IoT infrastructure discussions. The anticipated 580 million embedded OEM telematics-equipped vehicles by 2030 signifies not just an uptick in connectivity but also a shift towards native connectivity controlled by OEM architectures and embedded in long-term digital service strategies. This evolution represents a significant growth area in the automotive IoT sector.
