ABI Research: Convergence of Navigation, Telematics Creates New Opportunities

October 9, 2006 // Published as a news service by IHS

Automotive telematics and navigation - including both hardware and services - will experience strong growth in several world regions, generating revenues of $38.3B in 2011, according to new analysis from ABI Research.

"Telematics and navigation systems are converging," said Steve Bae, transportation research associate at ABI Research.

"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," he said.

Analysts said digital radio is being seen as viable "data pipe" for converged navigation/telematics services, particularly for real-time traffic information - 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. Analysts said global positioning system (GPS) is the mechanism of choice today 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. "They will promote navigation technology sales in their regions, but they will also create some initial confusion in the markets," Bae said.

Source: ABI Research.