In-vehicle telematics and Internet to grow sharply

Aug 30, 2010

The market for factory-fitted telematics systems and Internet access is about to enter a new and more dynamic growth phase, according to IMS Research. The market research firm expects all major vehicle manufacturers to begin selling an increasing proportion of their vehicles with these systems factory installed over the next decade.

A recently released report by IMS Research, entitled “The World Market for OE In-Vehicle Telematics Systems,” predicts that globally, the percentage of new vehicles fitted with telematics will grow from 9 percent in 2009 to 46 percent in 2017. However, the types of telematics system offered and the applications they provide will differ greatly between manufacturers, according to the market research firm.

The report estimates that General Motors sold the most vehicles with factory-fitted telematics systems globally in 2009 at 2.2 million vehicles.

Additionally, IMS Research expects that globally the number of new vehicles with internet access will grow from 1.1 million in 2009 to 6.0 million in 2017.

IMS Research defines telematics as “integrated, two-way data communications between the vehicle and an outside network, that is often associated with vehicle location.” According to Jon Cropley, the report’s author, “Telematics is an umbrella term that covers many different solutions from the Toyota G-Book, to Mercedes’ mbrace and GM’s OnStar. What they each share in common is that they employ wireless technology to connect in-vehicle entertainment and information systems to outside networks. In doing so, they enhance the driving experience or offer additional functionality.”

Cropley notes that a key difference among the various telematics solutions is how the wireless technology is enabled.

“Some solutions employ an embedded wireless communications module, while others make use of the driver’s own cell phone,” says Cropley. “Another difference between solutions is the applications they provide. Applications that are driving the fitment of factory-fitted telematics include emergency calling, stolen vehicle tracking, and, perhaps most excitingly, Internet access.”

“In-vehicle internet access could lead to a wide range of interesting new services,” continues Cropley. “Examples include weather reports or parking information for your destination, remote diagnostic information or even having your emails read aloud to you while driving.”

For further information regarding the IMS Research report, entitled “The World Market for OE In-Vehicle Telematics Systems,” visit the firm’s website.

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