|Vehicle tracking using OBDII port devices|
is becoming more popular due to easy installation
and the ability to track personal vehicles and/or
Technology market analysts ABI Research said that 117.8 million 'onboard diagnostics (OBD) aftermarket telematics solutions' are expected to be subscribed to in 2019, up from 9.5m this year.
It said the demand for solutions that plug in to OBD port built into vehicles is strongest in European and North American markets at the moment but that smartphone applications will provide increasing competition within the telematics technology market.
|Smartphone HTML5 applications are being|
used more commonly to provide detailed
information not only of a vehicle's location
but to gather and process sensor information.
"Beyond the 2019 forecast horizon, the window of opportunity for OBD-dongles will gradually close as open factory-installed OEM (original equipment manufacturer) telematics becomes more widespread," ABI Research said in a statement.
"OBD solutions will also face competition from aftermarket telematics solutions based on smartphones connecting directly to the vehicle OBD port via Bluetooth or Wi-Fi adapters. Even standalone smartphone applications are starting to be explored for applications such as UBI (usage-based insurance) and driver behavior monitoring of truck drivers leveraging the built-in GPS, accelerometer, and connectivity," it said.
'Telematics' is a term most commonly associated with the motor insurance industry; though in general it refers to any system that collects remote or mobile sensor data. Insurance companies are increasingly recording information via devices in cars that allows them to set insurance premiums that reflect the driving style of motorists. Using recorded data, companies are able to pinpoint specific driver or vehicle risks rather than using more generalized area statistics.
Earlier this year competition law expert Natasha Pearman of Pinsent Masons, the law firm behind Out-Law.com, warned insurance companies to be careful to ensure that arrangements governing how telematics data is gathered, managed and accessed do not fall foul of competition and privacy laws.