Telematics forecast to grow in popularity, new research reports

There will be more vehicles on the road in coming years with telematics systems built in, which could be a concern for shop owners and technicians that could lose business to the dealerships.

And with growing popularity of being instantly connected, the trend will continue, one research firm reports.

“Consumer telematics systems are becoming more popular due to the growing awareness of car manufacturers, telematics service providers, governments, and drivers about the benefits of positioning and communications technologies in cars for improved safety, security, efficiency, convenience, infotainment, cost savings, and reduced environmental impact,” says ABI Research principal analyst Dominique Bonte. “By 2013 more than 30 million new cars will ship with on-board telematics units, representing a penetration of nearly 44 percent.”

The firm detailed its report in “Consumer Telematics Forecasts,” a new market database from ABI Research.

Telematics solutions such as General Motors’ OnStar and Ford’s SYNC will soon become standard features in all new passenger cars in the US. In Europe, the eCall project aims at making telematics units supporting automatic emergency calls mandatory in all new cars from 2011. OEM telematics solutions have been offered by Toyota, Nissan, Honda and Hyundai in Asia-Pacific since 2002. Applications include remote diagnostics, concierge services and remote door unlock.

One of the main drivers for the uptake of consumer telematics is the need for advanced infotainment services enhancing the navigation user experience via real-time location-based content such as traffic, fuel prices, parking space availability and tourist information.

Aftermarket telematics solutions for stolen vehicle tracking and insurance applications in existing vehicles will also experience strong growth. A new category of portable and handset-based solutions is emerging, with teenage driver tracking and speed monitoring as some of the most popular applications.

After several years of slow growth, all elements are being put into place to make consumer telematics enjoy mass market adoption. GPS technology has matured and flat-fee data communication tariffs are becoming globally available, while the widespread use of navigation devices has educated consumers about positioning technology, preparing them for the next step.

ABI Research is a market research firm focused on the impact of emerging technologies on global consumer and business markets. For information, visit www.abiresearch.com.