North American Telematics Market Projected to Surge to $7B By 2007
North American Telematics Market Projected to Surge to $7 Billion By 2007 The North American market for automotive telematics is poised for tremendous growth with the integration of wireless telecommunications and information technologies. By facilitating an interactive exchange of data over wireless networks, telematics systems will bring vehicles and drivers into the information age. According to a new study by automotive analysts Frost & Sullivan ( http://transportation.frost.com ), the total North American Automotive Telematics market rose from $60 million in 1999 to $380 million in 2000. Double-digit growth could bring this market to $7 billion in 2007. Automobile manufacturers are increasingly implementing telematics technologies, from on-board navigation systems to remote vehicle diagnostics, to differentiate their products from those of their competitors. To maximise revenues, however, companies will need to meet growing consumer demands. ``So far, the telematics market has been characterised by the 'push' from automakers rather than the 'pull' from vehicle buyers,'' says Frost & Sullivan Industry Analyst Joerg Dittmer. ``Telematics must extend its appeal beyond technology lovers to mainstream car buyers.'' Market participants must meet real, profound consumer needs so that telematics will become a ``must have'' feature for the average vehicle owner. To this end, manufacturers must research consumer preferences and develop telematics systems that are easy to use to ensure widespread adoption. ``Fast implementation of new technologies will play a key role in participants' success,'' says Frost & Sullivan Industry Analyst Meenakshi Ganjoo. ``To stay ahead in the ever-changing and evolving telematics business, participants need to evaluate and quickly implement emerging technologies and new products.'' Standardisation of telematics systems will help industry participants to ward off obsolescence of technologies. Collaborative projects, such as the Automotive Multimedia Interface Collaboration (AMI-C), could foster development of open architecture specifications for information, communications, and entertainment systems. Earlier this year Frost & Sullivan completed a study of the European telematics market, which found the market was worth 1.03 billion Euros in 2000. Frost & Sullivan forecasts the market will grow steadily until 2004 when most volume automakers will launch affordable telematics systems across the range, accelerating growth and propelling revenues to a staggering 8.55 billion Euros in 2007. Frost & Sullivan is an international marketing consulting company that monitors a comprehensive spectrum of industrial markets for trends, market measurements and strategies. This ongoing research is utilised to complement a series of research publications such as the European Automotive Electric Motors Market to support industry participants with customised consulting needs. Free Executive Summaries of all Frost & Sullivan reports are available to the press.