ABI: Integrated Telematics Devices Key to Asian Markets in 2012

January 14, 2008 // Published as a news service by IHS

"In 2007, China's consumer vehicle tracking market value is expected to be worth more than $86 million and tracking units will take 94% market share in this region," said ABI Research analyst Wang Tao.

"Japan's hardware shipments will total 650,000 in 2007, exceeding $2 billion."

Global positioning system (GPS)/ global system for mobile communication (GSM)-based navigation systems are the major consumer vehicle tracking products with network based services in the Chinese market, analysts said.

In Japan, however, due to the high penetration rate of navigation systems that also can receive real-time information and advanced telematics services, integrated telematics devices are the first choice for most users.

In South Korea, with the development of location based services (LBS), and handheld devices' low prices, most consumers will choose handheld devices as tracking units despite their limited anti-theft value.

For most vendors or service providers in Asia, privacy protection is one of the barriers to success in this market, analysts said. Telematics service providers, particularly in Japan, have to face the challenge of safety and security as perceived by the consumer.

With the development of the telematics industry, analysts said integrated telematics devices will become the most popular choice for Asian consumers. "To attract Asian consumers there should be more added-value functions and services, in addition to tracking services," said Tao.

Telematics services in Japan and Taiwan used to focus on navigation, infotainment and real time information. Yet analysts said emergency services and roadside assistance are the services most demanded in both markets.

Source: ABI Research.