Vehicle Diagnostics Systems... The Future?

TORONTO, Nov. 13 -- Automobile owners can now experience a greater sense of security through the use of remote vehicle diagnostics systems which monitor performance and engine outputs.

During any trip, if a warning light activates, a motorist can simply pull over and call a service center to determine the urgency of the problem. The safety and preventative advantages of such applications are expected to become popular additions to both passenger and commercial vehicles.

New analysis from Frost & Sullivan (transportation.frost.com ), North American Remote Vehicle Diagnostics Markets, reveals that this industry generated revenues of $360 million in 2000 and will increase steadily to $2.38 billion by 2007.

``Automakers and fleet operators are creating the original market for remote vehicle diagnostics systems because of the benefits offered,'' says Frost & Sullivan Analyst Laurence Fourchet. ``Consumer demand is expected to develop as the public becomes more aware of remote systems and accepts the technology.''

Since automakers recognize the immediate benefits of installing the product into their vehicles, Fourchet expects initial growth to boom. With remote vehicle diagnostics' ability to obtain continuous real-time data, automobile manufacturers can quickly compile information to identify common problems or design issues.

These real-time performance statistics can be sent to a company's product development and manufacturing department for a proactive approach to addressing customer complaints.

Though these systems offer obvious benefits to vehicle manufacturers, the public is undereducated about remote vehicle diagnostics applications and their advantages. It is extremely important for market participants to increase consumer awareness, as this hurdle is currently limiting penetration levels.

``If potential end users are not aware of the products or features and benefits, they cannot accurately make a decision on whether they do or do not need such systems,'' says Fourchet. ``Lack of public awareness about telematics and remote vehicle diagnostics systems is one of the primary barriers keeping them from becoming standard equipment.''

Frost & Sullivan presents the 2001 Marketing Engineering Awards to companies that have worked diligently to make a positive contribution to the North American remote vehicle diagnostics industry. These market specific awards are presented to: Networkcar, Inc., NEXIQ Technologies, Inc., and OnStar.

The following is a key list of industry participants: AAA Response Services, LLC; ACTIA/ATI, Inc.; ALLDATA LLC; ATX Technologies, Inc.; Actron Manufacturing Company; Autodiagnos, Inc.; AutoXray, Inc.; Blue Streak America, Inc.; Blue Streak Electronics, Inc. Canada; Cellport Systems, Inc.; EASE Diagnostics; Fluke Corporation; General Dynamics; GenRad, Inc.; Hewlett- Packard Company; Hickok, Inc.; I+ME ACTIA; IBM Corporation; Intelligent Vehicle Systems, Inc.; Johnson Controls, Inc.; LocatorNet/NAVSYS Corp.; McCarney Technologies, Inc.; Motorola Telematics Communications Group; Networkcar, Inc.; NEXIQ Technologies, Inc.; OnStar; Qualcomm, Inc.; Siemens Automotive Corporation; Snap-on Diagnostics; Snap-on, Inc.; SPX Corporation; SPX OTC; TechSight; Telenetics Corporation; Tektronix, Inc.; TracerNET Corporation; Universal Electronics, Inc.; Vetronix Corporation; Wingcast, LLC; and WirelessCar North America.

Frost & Sullivan is a global leader in strategic market consulting and training. This ongoing research is part of the ITS and Emerging Technologies Subscription which also includes market analyses on North American Automatic Vehicle Location Hardware and Service Markets and North American Rear Seat Entertainment System Aftermarket. Frost & Sullivan also offers custom consulting to a variety of national and international companies. Executive summaries and interviews are available to the press.

North American Remote Vehicle Diagnostics Markets Report: A058-18