Telematics to Grow to $5 Billion by 2005, Says The Strategis Group

The telematics industry will be a $5 billion industry in 2005 in equipment and service revenues, projects The Strategis Group in its latest report, "The US Telematics Marketplace." The growth is being driven by auto manufacturers accelerating their introduction of telematics equipment and services, as they move to secure a strategic differentiation in the marketplace. "Safety is a prime concern for both consumer and car manufacturers, and telematics is the best safety enhancement since the introduction of seatbelts," said Elliott Hamilton, senior vice president at The Strategis Group. "In the future, car manufacturers will integrate wireless Internet and information services to their current safety applications." Projected Number of Telematics Subscribers (millions), 1997-2005 1997 .01 1998 .06 1999 .25 2000 1.01 2001 2.39 2002 4.56 2003 8.02 2004 12.43 2005 17.20 Source: The Strategis Group, Inc. GM Onstar's telematics service is leading the industry thus far in terms of subscribers, with nearly 1 million users expected by year-end 2000. Onstar's success is spurring the other car manufacturers to introduce their own telematics services, and The Strategis Group forecasts that 84 percent of new cars sold in 2005 will have telematics available as optional or standard equipment. The Strategis Group also forecasts that telematics subscribers will exceed 17 million users by year-end 2005. "The telematics industry is providing opportunities for new companies and start-ups to provide innovative products and services," said Hamilton. "Opportunities will abound for service bureaus, system integrators, content providers and device manufacturers." The Strategis Group's telematics report addresses the drivers of growth in the market, the role of different industry players, consumer preferences for telematic services and provides forecasts for telematic subscribers, and equipment and service revenues. For more information on the report, contact an account executive at 202-530-7500 (voice), 202-293-7933 (fax) or sales@StrategisGroup.com (email).