North American Telematics Market Projected to Surge to $7 Billion by 2007
The North American market for automotive telematics is poised for tremendous growth with the integration of wireless telecommunications and information technologies.
According to new analysis by Frost & Sullivan, the total North American automotive telematics market rose from $60 million in 1999 to $380 million in 2000. Double-digit growth could bring this market to $7 billion in 2007.
Automobile manufacturers are increasingly implementing telematics technologies, from onboard navigation systems to remote vehicle diagnostics, to differentiate their products from those of their competitors. Frost & Sullivan says that to maximize revenues, however, companies will need to meet growing consumer demands.
"So far, the telematics market has been characterized by the 'push' from automakers rather than the 'pull' from vehicle buyers," says Frost & Sullivan Industry Analyst Joerg Dittmer. "Telematics must extend its appeal beyond technology lovers to mainstream car buyers."
Market participants must meet real, profound consumer needs so that telematics will become a "must have" feature for the average vehicle owner. To this end, manufacturers must research consumer preferences and develop telematics systems that are easy to use to ensure widespread adoption.