Telematics Poised To Take Off, Says New Report

Compiled ByJill Jusko The North American market for automotive telematics is poised for tremendous growth, says new analysis by Frost & Sullivan. The total North American market rose from $60 million in 1999 to $380 million in 2000. Frost & Sullivan's latest analysis suggests it could reach $7 billion in 2007. The integration of wireless telecommunications and information technologies will fuel this growth, says the global market research firm. The report notes that automotive manufacturers have increasingly implemented telematics technologies, from onboard navigation systems to remote vehicle diagnostics. To maximize revenues, however, they will have 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. The challenge for manufacturers is to transfer telematics' appeal beyond technology lovers to mainstream car buyers. Frost & Sullivan is based in San Jose.