Automotive Telematics to Experience a 25% CAGR to 2011, According to ABI Research

Business Wire, August 28, 2006

NEW YORK -- Automotive telematics and navigation--including both hardware and services--will experience strong growth in several world regions, generating in total revenues of $38.3 billion in 2011, according to a new study released by ABI Research.

"Telematics and navigation systems are converging," says transportation research associate Steve Bae. "While telematics systems can bring peace of mind to customers by providing security, safety, and other convenience features such as news, weather, and concierge services, current navigation systems can offer more than simple directions from point A to B by applying layers of traffic and weather information to routing schemes. Combining two technologies brings existing and new industry players greater flexibilities to offer new products and address niche markets."

Increasingly, says Bae, digital radio is being seen as viable "data pipe" for converged navigation/telematics services, particularly for real-time traffic information, which is a key selling-point for automotive navigation.

Navigation and telematics both require current location data for their core functions and are mainly designed for in-vehicle use. At present, the Global Positioning System (GPS) is the mechanism of choice for all server-based navigation systems. In 2008 and 2009 other satellite systems are expected to launch: Galileo in Europe and Quasi-Zenith in Japan. Both will be complementary to the GPS system, and, says Bae, "They will promote navigation technology sales in their regions, but they will also create some initial confusion in the markets."

These issues and more are discussed in "Automotive Telematics: Global Consumer Telematics Markets and Technologies" (http://www.abiresearch.com/products/market_research/ Automotive_Telematics) (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.), a new study which presents a high-level overview of the telematics and navigation industries (including their "killer application", real-time traffic information), aimed at newcomers to the telematics, navigation, and automotive entertainment industries.

The report discusses various telematics applications and their enabling technologies. Critical business, technological and regional issues are identified, as well as emerging trends. Global forecasts for automotive telematics, navigation and digital radio are included. The study concludes with profiles of selected market players. It forms part of the firm's subscription Automotive Infotainment Research Service (http://www.abiresearch.com/products/service/ Automotive_Infotainment_Research_Service). (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in broadband and multimedia, RFID and M2M, wireless connectivity, mobile wireless, transportation and emerging technologies. For information visit www.abiresearch.com, or call 1.516.624.2500.