Telematics Makes a Comeback:

MINNEAPOLIS--Monitored telematics – an underestimated feature of many luxury cars – is making a comeback in the automotive industry. By 2010 more than 30 million telematics-enabled vehicles will be on the road in the U.S. alone.

Thanks to GM, BMW, and Mercedes, nearly one in four vehicles sold in the U.S. next year will have monitored telematics for safety, vehicle diagnostics, or navigation services. “The pendulum is starting to shift,” says Dr. Egil Juliussen, TRG’s co-founder and principal analyst. “Telematics will eventually be on all cars as OEMs realize the benefits of having a connected car.”

Evidence of the rise of telematics can be seen in recent reports that automakers are getting close to disclosing their plans for telematics. New suppliers and service providers are also emerging to take up the demand for new content and services to be delivered wirelessly to cars. In Europe, telematics will become mandatory in the next five years as a means of saving lives. Similar patterns are emerging in Asia and other parts of the world.

Automotive telematics has been around for 10 years. But the outlook turned gloomy early on as some automakers gave up on the technology claiming it was too costly and complicated. Ford hung up telematics years ago when it divorced itself from Qualcomm in the Wingcast venture. Ford, like most OEMs, is back at it, lining up players for future telematics platforms.

“Non-believers in telematics are now a thing of the past,” says Phil Magney principal analyst at TRG. “All agree on the need for a wireless connection to the vehicle.” The debate over applications remains. Some contend safety and security is a luxury few are willing to pay for. Others see opportunities in remote diagnostics, navigation or entertainment.

OEM Monitored Telematics – No. Am.	2005	2006	2007	2010	2011
OEM Monitored Telematics Sales (#K)	2,189	2,984	3,866	5,966	7,180
OEM Telematics In-Use (#K)	10,074	13,021	16,820	32,332	39,196
OEM Monitored System Revenue ($M)	2,781	3,223	3,518	3,878	4,380

Source: Telematics Research Group, Inc. (TRG)

About TRG:

Telematics Research Group tracks, analyzes and forecasts the market for automotive telematics, navigation, and digital entertainment. TRG’s Automotive Research Portals provide global intelligence on market demand, supplier opportunities, and technology trends. For more information, go to TRG’s web site or Contact:

Phil Magney, principal analyst

(952) 935-0400 office

(952) 215-1797 mobile

pmagney@telematicsresearch.com