Manufacturers Target Markets For Remote Vehicle Diagnostic Equipment
9 December 1999
Manufacturers Target Markets For Remote Vehicle Diagnostic Equipment
SAN ANTONIO--Dec. 8, 1999--Automotive, electronics, computing and telecommunications technologies are advancing to unparalleled levels, allowing automakers to equip cars with remote monitoring products.However, consumer awareness and acceptance have yet to be determined, prompting automakers to initiate market development in the absence of clear demand dynamics.
According to new strategic research conducted by Frost & Sullivan (www.frost.com), "Remote Vehicle Diagnostic Markets: Strategic Analysis," OnStar nearly doubled its subscriber base to approximately 70,000 from 1998 to 1999. Similarly, ATX is projected to achieve 70,000 subscribers by the end of this year. As consumers become more aware of technology integration and the benefits of remote vehicle diagnostic systems, the market is expected to witness strong growth.
While remote vehicle diagnostic systems offer a plethora of consumer benefits--improved maintenance and fuel economy, greater reliability and longevity, and reduced emissions--manufacturers must monitor consumer acceptance and avoid instituting production schedules based on technological feasibility.
"Onboard computing and communications capacity will increase substantially in coming years, but companies must understand application dynamics in order to realize system potentials," says Joerg Ditmer, the lead analyst for this research. Centralized expert systems that analyze fault codes are the element most dedicated to remote systems. Virtually all other peripherals and equipment have other industry applications and require synergistic collaboration. From monitoring emissions to proactive maintenance and from telematics to global positioning systems (GPS), manufacturers must address emerging application avenues.
As markets emerge and products advance, manufacturers will inevitably form standards for interoperability of onboard components and communication links. Consequently, information and software access rights must be determined. As Ditmer affirms, "Consumer perceptions will play a critical role in determining who has access to which types of information."
Aftermarket and repair services will be contingent upon manufacturer adoption rates of proprietary or universal systems. While challenges and obstacles loom around every corner, companies that monitor the consumer pulse and institute cost efficient features and equipment, will be poised to gain market share.
Frost & Sullivan has recognized the following companies as participants and related companies within the U.S. Remote Vehicle Diagnostic Markets: Actron Manufacturing Company; ALLDATA Corp.; Autodiagnos, Inc.; AutoXray, Inc.; CellPort Labs, Inc.; Clarion Corporation of America; Diagnostic Hotline; Fluke Corp.; General Dynamics TechSight; GenRad, Inc.; Hewlett-Packard Co.; Hickok Electrical Instruments Co.; IBM Corp.; Intelligent Vehicle Systems (IVS); McCarney Technologies, Inc. (MTI); Monico, Inc.; Motorola Telematics Communications Group; OnStar; Siemens Automotive Corp.; Snap-on, Inc.; Snap-on Diagnostics Group; SPX Corporation; Tektronix, Inc.; UEI, Inc.; Vetronix Corporation; WPI Micro Processor Systems, Inc. (MPSI); Related Companies: Blue Streak Electronics; Clarion Corporation of America; DaimlerChrysler; DaimlerChrysler Research and Technology North America, Inc.; Envirotest Systems Corp.; Ford Motor Company; General Motors Corp.; Hitachi Automotive Products (USA), Inc.; Mac Tools, Inc.; Protection One Mobile Services Group; Robert Bosch Corporation; Standard Motor Products, Inc.; Volvo Cars of North America; Industry Organizations: Automotive Multimedia Interface Consortium (AMIC); Center for Automotive Science & Technology; Equipment and Tool Institute (ETI); Institute of Electrical and Electronics Engineers, Inc. (IEEE); International Federation of Automotive Engineering Societies International Organization for Standardization (ISO); ITS America; Office for the Study of Automotive Transportation; SAE International; Telematics Suppliers Consortium (TSC); Industry Publications: Automotive Engineering International; Automotive Technology International; Journal of the Air & Waste Management Association; Motor Age; Government Agencies: Bureau of Automotive Repair; California Air Resources Board (CARB) (California Environmental Protection Agency); Federal Trade Commission (FTC); National Vehicle and Fuels Emissions Laboratory; U.S. Environmental Protection Agency (EPA).
Frost & Sullivan is an international marketing consulting and training company that monitors the Ground Transportation industry for market trends, market measurements and strategies. This ongoing research is used to complement a series of research publications such as U.S. Intelligent Transportation System Markets, and is used to support industry participants with customized consulting needs. Free executive summaries of all Frost & Sullivan research are available to the press through our media relations department.
Remote Vehicle Diagnostic Markets: Strategic Analysis
Report: 5893-18 Date: January 2000 Price: $3,450