U.S. Aftermarket Poised To Deliver On Telematics Promises OEMs have yet to Fulfill, Says ABI

Oyster Bay, NY June 2, 2003; Despite some false starts in the past, this year will serve as the backdrop for the mass-market rollout of aftermarket telematics systems in the U.S., according to a new report from research firm, Allied Business Intelligence (ABI).

All of the major U.S. vehicle security system manufacturers will offer a GPS-enabled security system featuring an optional suite of automated telematics services. In Europe, many such systems have recently been introduced, but new thin-client navigation systems are also being launched to provide dynamic route navigation services at a considerably lower cost than that of previous offerings.

"Consumers want vehicle-centric telematics applications that are both fun and useful, while also offering low subscription costs," explains Frank Viquez, ABI Director of Automotive Electronics and author of the report. "So far, OEMs [original equipment manufacturers] have dropped the ball, but the aftermarket is ready to take the ball and run with it." Viquez adds that traditionally, it is the automotive aftermarket that is the most responsive to consumer desires, due to its shorter development times than that of the OEM market.

All mobile electronics "must-haves," including keyless entry, remote-start, and rear-seat entertainment systems, were all introduced in the aftermarket, yet telematics has been a mostly OEM-driven industry. After six years, automakers have apparently failed to develop worthwhile applications that reach a significant volume of recurring customers. However, new automated aftermarket telematics systems will offer low-cost services consumers can use every day for both convenience and peace of mind.

According to ABI's research, the total global telematics aftermarket will climb to nearly $600 million in 2008 from approximately $90 million in 2002. The U.S. market alone, with 140 million vehicles currently in use, will be worth over $120 million in 2008.

The new report, "Aftermarket Telematics: Global Market Opportunities for Next-Generation Automotive Navigation, Safety, And Security Services," provides insight into the world's key aftermarket telematics offerings, and explores varying global business issues, consumer dynamics, and potential hurdles. System shipments, service revenues, subscribers, and adjunct equipment, including navigation systems, are also forecasted over the next 5 years on a regional basis.

Allied Business Intelligence Inc. is an Oyster Bay, N.Y.-based technology market research firm founded in 1990. ABI publishes comprehensive research and technology intelligence on the automotive, wireless, electronics, networking and energy industries. Details may be found on the web at alliedworld.com or by calling 516-624-3113.