The Telematics Revolution: Consumers' Appetite for Auto Safety, Entertainment Behind the Momentum

ORADELL, N.J., March 18 -- The telematics industry is set to take-off. That's the key finding from a study entitled "Automotive Telematics Systems & Industry Trends," released today by TechnoMetrica Market Intelligence.

In fact, the appeal of automobiles equipped with telematics is high enough to generate more than $700 million in sales over the next 2 quarters, if auto manufacturers are nimble enough to capitalize on growing consumer awareness and demand.

The key to doing this, according to TechnoMetrica, is to know your consumer. "And that's what we've done with this study," says Raghavan Mayur, TechnoMetrica's president. "We've seen what the consumer wants and gotten a glimpse of the potential that this market holds. It is very promising."

One of the giants of the American auto industry, General Motors, has been banking that telematics would capture the imagination of consumers for quite some time now. Once the purview of science fiction, like the moon landings, telematics are now a reality, with OnStar leading the way.

Taking the analogy one step further, the drive towards telematics is not too different from the driving force behind Apollo: mind-boggling thrust. This time, however, that thrust comes from consumers who demand onboard safety and security measures, navigation and entertainment.

Emergency services (34%), built-in navigation systems (31%), and satellite-based entertainment services (14%) are the three most-wanted Telematics systems among "likely" car buyers, the study shows.

According to Susheel Philip, TechnoMetrica's lead auto analyst, GM is putting pressure on the competition by offering a wide range of models aimed at different people. "When you get OnStar in each of those models, the competitors will be forced to catch up." The inevitable outcome of this is a continued widening of the pool of potential telematics customers.

Furthering this, Philip says, is the symbiosis that exists between young people, who, with their growing spending power and love for technology, are a natural fit for telematics, and auto manufacturers, who naturally want to tap into the young buyer's market and have a long tradition of innovation.

About the Study

TechnoMetrica surveyed nearly 5,000 Americans for this study and focused on approximately 1,000 who are likely to buy an automobile within 6 months. "Automotive Telematics Systems and Industry Trends" can be ordered by calling 1-800-328-8324. Send email to ckambanis@technometrica.com for abstract, TOC and ordering information.