Allied Business Intelligence: Telematics Market On Verge Of Paradigm Shift

    OYSTER BAY, N.Y.--May 7, 2002--The face of the consumer telematics industry is poised for a dramatic shift during the course of this year, according to the findings of a new report from Allied Business Intelligence Inc.
    "The 2003 model year will serve as the platform for U.S. OEMs to delve into new, uncharted waters in telematics by initiating new strategies," states Frank Viquez, senior automotive analyst and report author. "This includes employing wireless networking technologies like Bluetooth, relinquishing service development to wireless carriers, utilizing new distribution channels, and exploiting new wireless links such as satellite and terrestrial digital radio."
    Automakers will soon launch telematics services which will incorporate new business models and hardware offerings atop the two which currently exist in the U.S. today: OnStar's off-the-shelf offering, and ATX' private label solution. DaimlerChrysler's U-Connect service will feature Bluetooth-enabled hardware, and telematics services from AT&T Wireless.
    At the same time, Wingcast's service will launch in some Ford and Infiniti vehicles as a factory-installed option, or through aftermarket consumer electronics channels in partnership with Directed Electronics Inc. Consumers will have the choice of an embedded factory-installed device offering seamless telematics services in or out of the vehicle, or an aftermarket Wingcast AVL (automatic vehicle location) solution which will share many of the same basic safety and security services of the embedded product.
    In Europe and Asia, several OEMs are forming telematics partnerships to dilute their risk, as they deploy restructuring programs and focus on core competencies. Glimpses into OnStar and Wingcast's overseas telematics strategies for these regions are also coming to light. According to the report's findings, the aggregate global market for telematics is expected to grow to over $12.3 billion by 2007 from $2.2 billion for 2001.
    The new report, "The Digital Car: Dynamic Player Roles and Business Models in the Telematics Value Chain" discusses shifting OEM strategies and the status of and potential for telematics systems. In addition to providing analyses of key market players, the report details emerging, market-driving applications and technologies, and outlines the market potential for telematics hardware, subscribers, and revenues segmented on a geographic basis.
    Allied Business Intelligence Inc. is an Oyster Bay, NY-based technology research think tank that publishes research and technology intelligence on the wireless, automotive, electronics, residential and energy industries. Details can be found at www.alliedworld.com or by calling 516-624-3113.