The latest research in our Cellular IoT Connectivity Series

In-Vehicle Infotainment Connectivity to Exceed $35 Billion in Revenue by 2028

London, 26th March 2024 –  A new report by connectivity experts Kaleido Intelligence forecasts that in-vehicle infotainment connectivity revenue will grow by an average of 40% each year between 2023 and 2028. This growth will exceed that of most other sectors in the automotive, transport and logistics connectivity market.

Infotainment Generates Massive Data, Unstable Revenue

Kaleido’s latest report, Cellular IoT Connectivity Series: Transport & Logistics Opportunities & Forecasts 2023-2028, shows that the high data consumption of infotainment, totalling over 1 exabyte per annum from 2027, will dwarf many other connectivity sectors, even with provisions within many platforms that require Wi-Fi to be used in some situations.

The report notes that infotainment’s integrated data consumption will increase further as several automakers attempt to bring more functions into the vehicles and away from tethering platforms like Android Auto and Apple CarPlay. However, particularly in the initial phase of this change, much of the connectivity cost will ultimately be a cost to automakers, as customers take up free trial opportunities and cancel when the subscription charges begin.

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Telematics to Remain the Biggest Sector

Telematics, the transmission of data relating to the location and condition of a vehicle, will grow to over 600 million connections by 2028, the largest subsector of the industry. These will grow increasingly more sophisticated, but the implementation of edge computing in many logistics vehicles will limit the data transfers required. As such, Kaleido believes that connectivity revenue from this sector will only exceed $5 billion by 2028.

The telematics subsector has been the bedrock of much automotive connectivity,” remarked research author James Moar. However, the key to monetisation of that data has been at the platform level, often captured by software providers. If they don’t provide this themselves, telcos and other connectivity providers need to offer VAS that improves the value of the transmitted data, rather than generating more of it.”

Cargo Tracking Faces Sustainability Concerns & Competition

Kaleido forecasts that cargo tracking will account for over 60 million connections in 2028, more than double 2023’s volume. This will be bolstered to a degree by cellular smart labels, which are just starting to scale and has a huge addressable market, but the report notes that these are both competing with unlicensed technology offering similar functions and with the perception that single-use electronics are wasteful. This will dampen enthusiasm for the sector, restricting aggregate growth to 23% per annum over the forecast period.

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About Kaleido Intelligence

Kaleido Intelligence is a specialist consulting and market research firm with a proven track record of delivering telecom research at the highest level. Kaleido Intelligence is the leading research company addressing mobile roaming and connectivity services in its entirety, covering industry-leading market insights, data forecasts, historical viewpoints, competitive intelligence and operator market surveys.

Research is led by expert industry analysts, each with significant experience delivering market research and insights that matter.

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