El Segundo, Calif., November 22, 2010—Global shipments of built-in car Wi-Fi systems are set to soar by more than fortyfold by 2017, as automakers increasingly view wireless connectivity as a key competitive differentiator, according to iSuppli Corp., now part of IHS Inc. (NYSE: IHS).
Worldwide automotive original equipment manufacturer (OEM) shipments of Wi-Fi systems will rise to 7.2 million units in 2017, up from just 174,000 in 2010, as presented in the attached figure.
“Wi-Fi in the car is a hot topic these days, with major OEMs noticeably incorporating it into new-model releases,” said Stacey Oh, analyst and regional manager for Asia automotive research at iSuppli. “Whereas Wi-Fi was an aftermarket accessory in the past, OEMs now are touting it as a key offering.”
For Ford Motor Co., the company is turning its vehicles into Wi-Fi hot spots with the next generation of its Sync in-car connectivity system. MyFord is able to incorporate in-car Wi-Fi connectivity, powered by any customer’s existing USB mobile broadband modem. The solution inherently reduces cost for the consumer and the OEM, while requiring less space in the vehicle for a modem.
Furthermore, the system is also able to integrate WLAN from a local hotspot and utilize it for downloads into the vehicle, which could in the future include anything from map updates to software patches and vehicle dynamics revisions.
Via SIM card
Meanwhile, European OEMs are taking a different route. Marvell Technology and Harman Automotive in August announced integrated Wi-Fi connectivity via Marvell Mobile Hotspot (MMH) technology, with the 2010 Audi A8 as the first vehicle on the market to feature the factory-installed mobile hotspot.
Together, Marvell and Harman Automotive have integrated MMH technology into the Audi vehicle through a built-in WLAN module, enabling high-speed online and Internet access via cellular link or Bluetooth devices. Implementing a full-featured, WLAN access point integrated entirely on the wireless chip, the MMH technology is incorporated into Harman’s connectivity system and has a local Wi-Fi mobile hotspot within the vehicle, giving passengers access to Web-based services.
Up to eight devices can be supported, from smart phones, to tablets, to other advanced mobile devices. To activate web access, the user has to insert a SIM card—usually a duplicate—so users receive one bill) into the SIM slot, which is part of the optional Bluetooth Auto Telephone.
Marvell’s Wi-Fi software architecture, on the other hand, is optimized for low electricity consumption on battery-powered consumer electronics, enabling passengers to connect to the vehicle’s network without affecting the battery life of their connected devices.
A competitive advantage
“Wi-Fi gives OEMs a competitive advantage,” Oh observed. “Staying connected is important to users and can improve the overall in-vehicle experience. And as Sync has elevated Ford’s image as a cutting-edge technology brand, OEMs probably want their brands to be associated with Wi-Fi to at least be relevant in this connected era.”
However, unlike Internet usage on the vehicle headunit from a telematics service, which can be tracked by automakers for information gathering or Client Relationship Management (CRM) purposes, mobile-device-based Internet usage information will not directly benefit the OEM.
However, data that can be collected via a connected in-vehicle system is accessible to the OEM. Knowing which services that drivers and passengers are using in the vehicle can give OEMs clues on what the next killer app might be. In the long run, OEMs must make sure that they maintain a constant connection to their customers, rather than just provide them with a pipe.
Learn more about this topic with iSuppli’s Automotive Research Portal – Infotainment.
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iSuppli Corporation is the global leader in technology value chain research and advisory services. Services afforded by iSuppli range from electronic component research to device-specific application market forecasts, from teardown analysis to consumer electronics and from display device and systems research to automotive telematics, navigation and safety systems research. More information is available at www.isuppli.com and by following us at twitter.com/iSuppli
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