Increased Convenience Offered by Telematics in Vehicles Propels Their Uptake, Finds Frost & Sullivan
Written by Frost & Sullivan
Thursday, 30 July 2009
MOUNTAIN VIEW, Calif., July 29 -- The telematics market has witnessed a
surge in interest as users realize the convenience of using everyday
tools such as the Internet and electronic services on the move.
The improved market prospects have encouraged technological advances in telematics, and now, users can connect their location-based service (LBS) mobile phone to the vehicle and access services like the Internet.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the Telematics and Location-based Applications and Services Market in North America, finds that telematics can help users access various services by streaming large amounts of data into the vehicle through 3G or 4G networks.
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, send an e-mail to David Escalante, Corporate Communications, at , with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.
With vehicle manufacturers introducing more applications requiring real-time data, telematics will assume greater importance in supporting the real-time wireless communication between the on-board device and the off-board server.
"Automakers should have telematics as a standard feature in all its models because it utilizes real-time diagnostics and can save millions of dollars in warranty and recall costs," says Frost & Sullivan Senior Research Analyst Sathyanarayana K. "Automakers have to partner with wireless carriers and educate their global positioning system (GPS)-equipped phone subscribers to use their phones in cars."
However, automakers and system suppliers could face issues of obsolescence and mismatch between automobile and consumer electronics products. They could alleviate these problems largely by developing a standards-based, flexible, and open architecture platform to keep the product relevant for a longer period.
Telematics service providers (TSPs) also need to expand their subscriber base to tide over the current lean phase. For instance, OnStar has rescinded its earlier decision to offer its services only to GM vehicles, despite GM's recent announcement of offering telematics as standard in all its vehicles. It has decided to extend its telematics services to other automakers to enlarge its subscriber base and stay afloat in the market. A wider subscriber base is vital as most TSPs' operating costs remain fixed, which means their per-subscriber costs will increase if they lose subscribers.
"Other TSPs may increase the renewal rates to offset free (new) subscriber losses by offering every-day use services such as turn-by-turn navigation, real-time traffic as well as mobile and portable device integration," notes Sathyanarayana. "They are also considering replacing certain operator-driven services by automated services."
Strategic Analysis of the Telematics and Location Based Applications and Services Market in North America is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: strategic analysis of North American passenger electric vehicles market, analysis of hybrid vehicle systems, technologies and supplier opportunities in North America, analysis of North American automotive software markets, and macro environmental analysis, powertrain considerations and mix for CAFE compliance. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.
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