Automobiles to Shift into Next Gear with Internet-Based Telematics

SCOTTSDALE, Ariz.--March 20, 2002--Telematics has the potential to transform the automobile into a mobile platform capable of providing computing, communications, entertainment, and safety functions, according to In-Stat/MDR (http://www.instat.com).

The high-tech market research firm reports that, due to the compelling nature of their applications for both manufacturers and consumers, all cars will eventually be produced with some degree of embedded telematics systems.

As a result, the number of subscribers to Internet-based telematics services worldwide will rise from approximately 27,000 in 2001 to just over 5 million in 2006, creating opportunities for manufacturers and service providers from the automotive, telecommunication, consumer electronics, and Internet industries.

The major players in the market include Telematics Service Providers (TSPs), vehicle OEMs, equipment manufacturers, operating system providers, and chip solution providers.

``Because there are so many players and varying needs, the market for telematics is very fragmented,'' said Cindy Wolf, an analyst with In-Stat/MDR.

``All players in the telematics industry face opportunities and challenges as they attempt to deliver convenience services to vehicles for which consumers are willing to pay,'' said Wolf. ``The opportunities for new revenue streams from airtime minutes, service subscriptions, and content delivery are confronted by the challenges of integrating diverse technologies in a timely manner and in an affordable package.''

No single company has all the know-how, or the technology to develop and offer a complete telematics solution on its own. Therefore, finding the right partners to create a complete solution will prove critical.

In-Stat/MDR has also found that:

The U.S. market accounts for the majority of worldwide telematics subscribers. Although it is primarily focused on safety and security applications, new services are beginning to be offered that provide personalized Web information, e-mail and dynamic navigation. Worldwide revenues from telematics hardware and subscriptions to Internet-based telematics services will rise to almost $12 billion by 2006, with a CAGR of 66%. The growth rate for Internet-based telematics subscribers will spike in 2004, as telematics services will be offered in an increasing number of vehicles and as consumer awareness of service benefits grows. The report, ``Bringing Internet Content to the Vehicle via Telematics Services'' ``IN020001ID'' examines the availability and demand for telematics services, with an emphasis on the emerging feature of Internet content delivery. The report provides subscriber and revenue forecasts for Internet-based telematics services and hardware over the period 2001-2006.

It reviews the major providers of services, hardware, operating systems, and chip solutions and discusses market drivers and hurdles facing the telematics value chain and the industry as a whole. To purchase this report, or for more information, please visit http://www.instat.com/catalog/cat-iad.htm or contact Courtney McEuen at 916/984-1179; cmceuen@instat.com. The report price is $2,995 USD.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products.

This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

In-Stat/MDR is a unit of Reed Business Information, a leading provider of critical information and marketing solutions to business professionals and a member of the Reed Elsevier plc group.