Auto Electronics

ABI forecasts $38.3 billion telematics market in 2011

Automotive telematics and navigation hardware and services will experience strong growth and generate $38.3 billion in total revenues in 2011, according to a “Automotive Telematics: Global Consumer Telematics Markets and Technologies,” ( ), a new study released by ABI Research.

"Telematics and navigation systems are converging," said transportation research associate Steve Bae. "While telematics systems can bring peace of mind to customers by providing security, safety, and other convenience features such as news, weather, and concierge services, current navigation systems can offer more than simple directions from point A to B by applying layers of traffic and weather information to routing schemes. Combining two technologies brings existing and new industry players greater flexibilities to offer new products and address niche markets."

Bae said that digital radio is increasingly being seen as viable "data pipe" for converged navigation/telematics services, particularly for real-time traffic information, which is a key selling-point for automotive navigation.

“Navigation and telematics both require current location data for their core functions and are mainly designed for in-vehicle use,” he noted. “At present, the Global Positioning System (GPS) is the mechanism of choice for all server-based navigation systems. In 2008 and 2009 other satellite systems are expected to launch: Galileo in Europe and Quasi-Zenith in Japan. Both will be complementary to the GPS system and will promote navigation technology sales in their regions, but will also create some initial confusion in the markets."

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