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'Drive and Survive' Telematics Marketplace to Explode, ABI Says

5 August 1999

'Drive and Survive' Telematics Marketplace to Explode, ABI Says

    OYSTER BAY, N.Y., Aug. 4 -- The telematics market will be one
of the most robust segments of the burgeoning intelligent transportation
systems (ITS) marketplace, according to a new study from Allied Business
Intelligence.  The in-vehicle information systems market for personal and
commercial vehicles will rise from a $300 million in 1999 to a $5.1 billion in
2003, according to the findings in "Intelligent Transportation Systems '99:
In-Vehicle Navigation and Communications Technologies, Global Markets, and
Forecasts."  In-vehicle navigation has already seen acceptance overseas, and
will account for a global market of $16 billion by year-end 2004.
    "A number of phenomena are creating large opportunities in this
marketplace," said ABI Vice President of Communications Research Larry Swasey,
the author of the report.  "Rising traffic levels, the increase in time spent
in a vehicle, and the aggressive nature of those behind the wheel has led many
to see themselves as professional drivers and in need of the latest
communications technology.  Those who actually need to be in a vehicle are
also taking advantage of the plethora of services ported from the Internet and
leading to driver-specific applications such as weather, traffic and
location-based information.  Much has been made available to the masses as GPS
units fall in price."
    While some applications have existed for some time -- such as fleet
management -- other applications, such as in-vehicle computing, navigation and
location-based services are just beginning to find widespread interest from
both vendors and users.  GM's OnStar and Protection One Mobile Service's in-
vehicle offerings have found early acceptance.  Hundreds of standards are in
the works to create a plug-and-play market for the technologies by the year
2000.
    Collision avoidance systems, obstacle detection devices, and adaptive
cruise control systems will also realize significant growth, rising from a
$403 million market in 1999 to a $31 billion market worldwide by 2005.  These
technologies are designed to save the driver from the increasing number of
hazards created by the close to 600 million vehicles on the world's roads and
a reluctance to build more high-cost routes for them.
    ITS covers the worldwide market for FMS, IVIS, IVNS, ODD, ACC, CAS, GPS
systems, GPS chipsets and antennas as well as ETC smartcards.
    Allied Business Intelligence, Inc. is an Oyster Bay, NY-based technology
research think-tank publishing strategic research on the broadband, wireless,
electronics, automation, energy and transportation industries.  Details can be
found at http://www.alliedworld.com. Or call 516-624-3113 for more info.