Global Telematics Sales on the Rise

MINNEAPOLIS--Automotive Telematics, a sometimes obscure feature found on many passenger cars – is making a comeback in the automotive industry. According to Telematics Research Group (TRG), by 2015 more than half the vehicles sold in the U.S. will come with a telematics service as annual sales of telematics on new cars pushes 12 million. By 2020 the majority of new cars sold in the U.S. will come with standard telematics as annual sales push 17 million units. Worldwide annual sale of telematics-enabled vehicles reaches 50 million in 2020.

Automotive companies such as GM, BMW, and Mercedes, have been deploying telematics for years and make up one in four vehicle sold with telematics now. But over the next two years the number of OEMs offering telematics will increase to nine or ten say TRG.

Telematics can be used for many applications but the real strategic value to the automaker lies in the ability to have a two-way connection to the vehicle. TRG states that safety to occupants and health of the vehicle are primary objectives and will become increasingly important going forward. A new feature from GM’s OnStar allows the company to disable a vehicle remotely, aiding in vehicle recovery and minimizing the possibility of high speed pursuits.

“Embedded telematics support many applications that generally fall into two camps,” says Egil Juliussen, TRG co-founder and principal analyst. “Consumer telematics are the applications that the support the driver and occupants, while vehicle applications revolve around remote diagnostics and telemetry.” While most vehicle-related telematics focus on diagnostics today, future telematics applications may accommodate emissions or economy enabling consumers to optimize their driving behavior or vehicle usage.

TRG principal analyst Phil Magney says that remote software updates to the vehicle will be possible using telematics. “In today’s world a service technician has to download the software update by physically connecting to the vehicle. In the near future these updates would be downloaded wirelessly to the vehicle with the driver not even knowing it. This scenario is like your PC that continuously monitors for software updates. It is just a matter of time until the car is able to do this.”

OEM Annual Sales of Telematics	2007	2012	2015	2020
USA Monitored Telematics Sales (#M)	3.5	7.5	11.8	17
EU Monitored Telematics Sales (#M)	0.5	2.4	7.2	15
Japan Monitored Telematics Sales (#M)	0.6	1.7	4.0	5.5
WW Monitored Telematics Sales (#M)	5.2	14.5	30	50
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