Automotive Telematics Industry Maturing Poised for Growth

GPS NEWS

The Strategis Group believes that telematics will become a competitive differentiator of automobiles and will increasingly help sell cars to safety-conscious and connectivity-oriented car buyers. That said, automakers will continue to struggle to develop highly profitable businesses revolving around safety-based embedded systems alone, and the investment-intensive platforms for advanced customer relationship management and vehicle relationship management will continue to be slow to develop.

Washington - Dec 12, 2001
Automotive telematics -- systems that combine global positioning satellite (GPS) technology and other wireless communication systems for automatic roadside assistance and remote diagnostics in consumer-oriented cars -- are poised for a rapid market expansion by 2005.

In a new white paper, "Telematics Paradigm Shift: Industry Strategies Mature as Business Model Realities Sink In," The Strategis Group predicts that growth in the automotive telematics market will be catalyzed as auto companies and wireless operators partner to introduce more sophisticated hands-free voice solutions into cars. Counter to a perceived lull in market demand, a new generation of emerging technologies offers opportunity for the mass penetration of telematics services.

"We have seen a 250 percent increase in our subscriber base this year alone, and anticipate ending the calendar year 2001 with almost two million subscribers," said Chet Huber, President of OnStar, a wholly owned subsidiary of General Motors and a leading telematics provider in the U.S. "We have developed quality services that drivers want and need in their vehicle on an easy-to use, flexible technology platform."

"Voice services have already emerged as a profitable application in the vehicle. The next logical step is to improve the quality and the level of integration of voice into mass-market vehicles," said Aldo Morri, a senior consultant with The Strategis Group. "Operators and auto OEMs are realizing that by utilizing up-and-coming technologies like Bluetooth and speech recognition, telematics is primed to reach the next level."

The Strategis Group also announced a new business unit today that will focus on consulting to clients throughout the telematics industry value chain. This affirms The Strategis Group's commitment to the belief that Auto OEMs and wireless carriers are entering a new phase of telematics deployment, and long-awaited services will be coming to market and spurring new growth.

The white paper is being offered at no cost online StrategisGroup's website

GPS ALERT

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Turin - Nov. 6, 2000
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