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North American Telematics Market Projected to Surge to $7 Billion By 2007

August 13, 2001

The North American market for automotive telematics is poised for tremendous growth with the integration of wireless telecommunications and information technologies. By facilitating an interactive exchange of data over wireless networks, telematics systems will bring vehicles and drivers into the information age.According to new analysis by Frost & Sullivan, North American Automotive Telematics Market, the total market rose from $60 million in 1999 to $380 million in 2000. Double-digit growth could bring this market to $7 billion in 2007, according to the analysis.Automobile manufacturers are increasingly implementing telematics technologies, from onboard navigation systems to remote vehicle diagnostics, to differentiate their products from those of their competitors. 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," said 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, according to Meenakshi Ganjoo, industry analyst at Frost & Sullivan. To this end, manufacturers must research consumer preferences and develop telematics systems that are easy to use to ensure widespread adoption."Fast implementation of new technologies will play a key role in participants' success," Ganjoo said. "To stay ahead in the ever-changing and evolving telematics business, participants need to evaluate and quickly implement emerging technologies and new products."Standardization of telematics systems will help industry participants to ward off obsolescence of technologies, according to Ganjoo. Collaborative projects, such as the Automotive Multimedia Interface Collaboration (AMI-C), could foster development of open architecture specifications for information, communications, and entertainment systems.About Frost & SullivanFrost & Sullivan is a global company involved in international strategic market consulting and training. This ongoing research is part of the ITS/Emerging Technologies Subscription, which also includes market analyses on the European Telematics Market and North American Remote Vehicle Diagnostics Market.Frost & Sullivan also offers custom consulting to a variety of national and international companies.For more information, visit
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