The dominance of head units in the infotainment aftermarket will soon be broken with sales of devices connected the the On-Board Diagnostic (OBD) plug exhibiting a compound annual growth rate (CAGR) of 29.5% and accounting for over 70% of aftermarket infotainment shipments in 2020, according to a new report from ABI Research.
This segment includes companies such as Zubie, Automatic, Automile, Mojio, Vinli, Vimcar and many others.
ABI Research thinks that the limitation of some OBD players lies in the vertical service they offer compared to the unicity of the OBD port.
“This is what makes OBD-II platform aftermarket application frameworks like Mojio or Vinli so appealing,â€? commented James Hodgson, research analyst with ABI Research.
“A simple reality of the OBD port is that only one is to be found in every car — with no easy way of adapting it to support the various solutions which need its power and unique access to CAN-bus data. OBD dongles with support for multiple third-party applications enable the peaceful coexistence of would-be competitive services, as well as the promise of more to come.â€?
However, ABI Research believes that moving forward aftermarket solutions will be less relevant because the car will be easier to upgrade.
“In the long term aftermarket vendors will still struggle to maintain their relevance in the face of the proliferation of connected consumer vehicles which will be kept up to date via OTA updates and by hardware updates in the field enabled by modular hardware architectures.“