Automotive Telematics 'Hotter Than a Jalapeno in a Heatwave'
12 November 1999
Automotive Telematics 'Hotter Than a Jalapeno in a Heatwave'
WASHINGTON, Nov. 11 -- The U.S. automotive telematics market
is poised for explosive growth, according to The Strategis Group's new study,
U.S. Telematics Marketplace: 1999. Revenues from automotive telematics
services are projected to rise from less than $40 million in 1999 to over $1.7
billion by 2004. The number of subscribers is projected to grow from under
200,000 at year-end 1999 to more than 11 million by 2004.
Current and Projected Number of Telematics Subscribers in the US,
1998-2004 (Millions)
1997 .01
1998 .06
1999 .20
2000 .82
2001 2.54
2002 4.96
2003 7.98
2004 11.17
Source: The Strategis Group, Inc.
"Telematics" is a recently coined term used to describe the integration of
vehicle control and monitoring systems with location tracking devices and
wireless telecommunications. The best-known examples of telematics devices are
General Motors' OnStar and Mercedes-Benz' TeleAid service. Telematics devices
can be used to:
* automatically notify authorities of an accident, and guide them to the
car
* track stolen vehicles
* provide navigation assistance to lost drivers
* call emergency roadside assistance
* perform remote diagnostics of engine functions
Telematics equipment and services have been available on some cars since
1997. However, high equipment and service costs initially limited telematics
to the luxury car market. Rapid declines in both equipment and service prices
are bringing telematics products into mid-priced automobiles. "Telematics
will be offered as an option or standard feature on approximately 25% of new
cars during the year 2000," says Stephan Beckert, Senior Consultant with The
Strategis Group.
The Strategis Group's survey of more than 600 wireless users and non-users
revealed strong interest in key telematics applications, such as emergency
roadside assistance, and location-specific traffic and navigation services.
More than half of current wireless users were interested in telematics'
emergency roadside assistance capabilities, and over a quarter were interested
in location-specific traffic and navigation information. "Telematics is the
first wireless location service that has the potential to reach the mass-
market," says Stephan Beckert.
Percent of Wireless Users
Interested in Emergency Roadside Assistance
(Percent of Cellular Subscribers)
Emergency Roadside Assistance 56%
Traffic and Navigation Information 26%
Source: The Strategis Group, Inc.
The Strategis Group -- with offices in Washington, DC, London, and
Singapore -- publishes in-depth market research reports and provides
customized consulting services and continuous information solutions to the
cable, TV, satellite, Internet, competitive telephony, broadband and wireless
communications industries. The Strategis Group's market studies, valuations
and strategic planning projects provide crucial information to communications
industry leaders throughout the world. U.S. Telematics Marketplace: 1999 is
available for US $1,200 in hard copy and US $1,800 in CD-ROM formats. Please
contact an account executive at 202-530-7500 (phone), 202-293-7933 (fax),
sales@StrategisGroup.com (e-mail) or visit The Strategis Group's Web site at
http://www.StrategisGroup.com for more information.