Consumer Telematics Hardware and Services Revenue Will Reach $41 Billion by 2013

02 Apr 2008

After several years of moderate growth, consumer telematics solutions are expected to become very popular in the future as drivers start to appreciate the advantages of GPS and cellular communication technology for improved safety, comfort and entertainment.

According to ABI Research's latest forecasts, by 2013 OEM and aftermarket consumer telematics hardware and services will generate annual revenue of $41 billion. The growth of consumer telematics will be further stimulated by three main factors. Car manufacturers will deploy telematics hardware as a standard feature enabling remote diagnostic. Governments will make telematics safety systems such as emergency calling mandatory in new cars in regions such as the EU. Insurance companies will provide premium discounts to drivers willing to install telematics systems. However, several barriers will need to be removed before consumer telematics can enjoy mass market adoption.