News
Issue #2003 - 23 (August 2003)
(Updated Aug. 19, 2003)

MARKET OUTLOOK & TRENDS

ABI Research Gives a Fresh Picture of Telematics - $14 Billion in 2008

According to an ABI Research report, the total global OEM telematics market will climb to over $14 billion in 2008 from over $2 billion in 2002.

In order to achieve this growth, the study advises that the current "rubber-stamp" approach to telematics must be eradicated and replaced with differing strategies among various vehicle platforms and customer segments. Customers must also be afforded the opportunity to pick from the various, lower-cost vehicle-specific applications to find those that best suit their needs.

For more information: http://www.abiresearch.com/abiprdisplay2.jsp?pressid=180

MobileInfo Comments and Advisory: Telematics market was expected to take off during 2003-2007 time period - that's what GM, Ford and others hoped for. Initial technology were high but consumers did not bite the early versions of Telematics services. The economic climate, dot com collapse and 9/11 did not help the situation. Early set of applications did not give tremendous value. 

While ABI is right in making some general assessments of the telematics market, we are not sure that anybody, including ABI has a clue to make a good forecast of the market. $14 billion is a sizeable market size in an emerging technology area. We do not see environmental changes in short term in consumers' craving for Telematics services. Therefore, we are somewhat hesitant to sign off on these predictions.

On one point, we agree with ABI Research - the telematics vendors must redesign their business models and services offerings.

Note: This news release may contain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of Securities Exchange act of 1934 in USA. Similar provisions exist in other countries. There is no assurance that the stipulated plans of vendors will be implemented. MobileInfo does not warrant the authenticity of the information. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.