ABI Research: Bluetooth Makes Strides In Automotive, But Is DSRC Waiting In The Wings?

OYSTER BAY, N.Y.--May 4, 2005--According to findings from ABI Research, many telematics and navigation systems over the past year have moved towards using Bluetooth (a personal networking standard) as a wireless link to a driver's mobile phone, which in turn offers wireless connectivity.

"The automotive industry regards Bluetooth as an acceptable compromise because users get their network connectivity, while automakers do not have to deal with installing costly cellular radios, or the hassles of managing customer accounts or dealing with wireless carriers" notes ABI Research senior analyst, Dan Benjamin.

However, ABI Research cautions that although automakers are now installing Bluetooth handsfree kits and testing its role in telematics, they are not considering Bluetooth for vehicle-to-vehicle communications.

"We see vehicle-to-vehicle communications as integral for the next generation of telematics and safety systems. This is where new wireless connectivity options such as DSRC are ideal," adds Benjamin.

Next-generation collision avoidance systems and even intelligent traffic systems will make use of DSRC (Dedicated Short Range Communications) and RFID for direct vehicle-to-vehicle communications. DSRC, which is based on 802.11, also utilizes RFID technology to allow vehicles to broadcast in dedicated spectrum, and can be used for telemetry data, identification, commerce, and even Internet access, once infrastructure is in place.

This expands the usefulness of conventional RFID-based applications beyond simple toll collection and commerce, towards highly interactive commerce, vehicle tracking and data telemetry.

DSRC's market potential, business issues, and regional requirements are discussed in ABI Research's focused study "Dedicated Short Range Communications (DSRC)." Market forecasts for the installation of both user transponders and infrastructure are provided, segmented by region, through 2010.

ABI Research discusses the potential of, and the competitive environment for, Bluetooth handsfree kits, telematics and other vehicular uses in the study "Automotive Bluetooth." The study covers the entire automotive Bluetooth market, from OEM adoption to aftermarket products for both telephony and entertainment, and includes comprehensive forecasts for key market parameters.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For more information please visit www.abiresearch.com, or call +1.516.624.2500.