Telematics' Three-Pronged Attack Meets With Bittersweet Success, According To ABI Research

    OYSTER BAY, N.Y.--July 17, 2003--While some segments of the telematics industry are seemingly stalled, others are thriving, according to a suite of comprehensive reports on the telematics industry by research firm ABI. Although the consumer OEM telematics industry is temporarily stalled, the majority of niche commercial telematics players are meeting limited success, while a burgeoning consumer telematics aftermarket appears to have the formula for success.
    "Many OEMs around the globe are sitting on the fence and taking a wait-and-see attitude before launching new consumer telematics initiatives," notes Frank Viquez, ABI's Director of Automotive Electronics Research. "However, on the commercial side, OEMs can't move fast enough. Meanwhile, a myriad of new GPS-based aftermarket navigation and safety and security telematics offerings are springing up around the globe."
    Although some segments have developed faster than others, ABI estimates that the aggregate global telematics market will grow to over $21 billion for 2008, from an estimated 2003 level of nearly $7 billion. In order to reach that level, ABI notes that telematics players must overcome unique issues to each segment of the industry.
    For example, commercial vendors will need to deliver new, multimodal telematics hardware while still being able to reduce hardware costs. For automotive OEMs, a new focus on vehicle-centric applications will be necessary before the consumer OEM segment can move forward. A complete overhaul of current subscription models will also be in order for consumers to realize a perceived value for these new services. In the consumer aftermarket, there is a significant level of market fragmentation and under-developed business plans that must be further refined, yet the core elements are in place for vendors to succeed in this segment.
    The telematics reports, "Aftermarket Telematics: Global Market Opportunities for Next-Generation Automotive Navigation, Safety, and Security Services;" "Fleet Management Systems: Exploring Global Market Opportunities, Trends, and Technologies in Commercial Telematics;" and "The Digital Car: OEM Strategies, Challenges and Opportunities In Global Consumer Telematics," are only a few examples of ABI's comprehensive suite of automotive research offerings. Augmenting these studies, ABI has commissioned a comprehensive online survey to gauge the industry's prospects by surveying companies across the telematics value chain. To take part in the survey, visit www.ABIresearch.com/telematics.
    ABI (Allied Business Intelligence) is an Oyster Bay, N.Y.-based technology market research firm founded in 1990. ABI publishes research and technology intelligence on the wireless, automotive, electronics, networking and energy industries. Details can be found on the web at www.ABIresearch.com or by calling 516-624-3113.