Half of all new cars sold in the United States, Western Europe and Japan will be telematics-capable by 2006, according to a new report. Telematics is the technology used in two-way communications services from a moving vehicle.
The study, by Strategy Analytics, says clear product positioning and partnering strategies will be vital if the technology opportunity is to be fully realised by both the IT and vehicle industries.
The report says that as new applications emerge product branding, customer ownership and management of the service element will become major strategic issues for market players. Strategy Analytics warns that some of the emerging telematics applications – e-mail, personal information management, push/pull m-commerce and remote access – will result in strong competition between in-car terminals and portable devices. Despite this, the report says that current trends in converging technology markets, combined with developments in in-car voice synthesis and integration technology will drive telematics growth. Growth will be especially strong in the large and luxury car markets, with 85% to 90% of new cars supporting telematics by 2006.
Joanne Downie, Strategy Analytics’ Managing Consultant, said that partnering, collaboration and product positioning would be a key factor in addressing the opportunities offered by telematics.
The short-term telematics opportunity, for emergency, roadside assistance and congestion avoidance, requires a low-level service input – these could be easily managed and very positively branded by car makers – In the longer term, however, points of interest, dynamic navigation, Internet-centric, mobile office, mobile family and m-commerce applications would emerge as major service opportunities – Car makers have little, if no, service experience and cellular operators, applications specialists and content providers have very limited knowledge of the in-car environment – partnerships right across the telematics value chain must be built.
In revenue terms, the report predicts that the world market for in-car telematics terminals will grow from US$7.7 billion this year to $24.3 billion by 2006. In production terms, Strategy Analytics says that the world market for in-car telematics terminals will grow from 4.8 million units this year to 24.8 million units by 2006.
Source Asia Daily