New Strategy Analytics Advisory Service Focused On Telematics
11 February 2000
New Strategy Analytics Advisory Service Focused On Telematics: High Growth Threatened by Technology Convergence; 50% of New Cars Should be Telematic by 2006
LONDON--Feb. 10, 2000--The new In-Vehicle Telematics & Multimedia advisory service from Strategy Analytics, Inc., focuses on successful financial opportunities in the convergent IT market. Clear product positioning and partnering strategies will be vital to fully realise opportunities. As new applications emerge, product branding, customer ownership and management of the service element will become major strategic issues for market players.There will be strong competition between in-car terminals and portable devices for some key emerging telematics applications, such as points of interest information, push/pull p-commerce and remote access. Nevertheless, trends in converging technology markets, combined with in-car voice synthesis and integration technology will drive telematics growth. Strategy Analytics expects that by 2006, over 50% of new cars produced in North America, Western Europe and Japan will have built-in telematics-capable terminals, and 85-90% of new large/luxury cars will be `telematic'. The world market for in-car telematics terminals will grow from $7.7 Billion by end 2000, to $24.3 Billion USD by 2006, with North America taking $9.4 Billion of that market.
`Partnering, collaboration and product positioning, will be key to addressing the telematics opportunity', according to Joanne Downie, Managing Consultant with Strategy Analytics. `The short term telematics opportunity for emergency roadside assistance and congestion avoidance requires a low level service input, which can be easily managed and very positively branded by car makers.' But in the longer term,' she added, `points of interest, dynamic navigation, Internet , mobile office, mobile family and p-commerce applications will emerge as major service opportunities. Car makers have little, if no, service experience, and cellular operators, applications specialists, and content providers have very limited knowledge of the in-car environment. Partnerships right across the telematics value chain must be built'.
Background:
These conclusions are presented in the recent market forecast report "In-Car Telematics Terminals Market 2000-2006" which is published as part of Strategy Analytics' (SA), `In-vehicle Telematics & Multimedia Service', Strategic Advisory Service. SA, formerly BIS Strategic Decisions, provides market and business planning analysis in published and consulting formats to meet the decision support needs of clients in North America, Europe, Japan and the Far East.