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Telematics systems market tipped for strong growth

The global market for automotive telematics systems is expected to quadruple in the years to 2016, it has been reported.

A report by market research firm iSuppli claimed that shipments of automotive telematics systems will rise from 19.3 million units in 2008 to 84.4 million by 2016.

Anna Buettner, analyst with iSuppli’s automotive research service, said telematics are attractive to original equipment manufacturers, as the systems boost the functionality of vehicles and reduce their after-sale costs.

'From sending out an automatic distress call after a car crash, to enabling remote diagnosis of engine troubles, telematics can provide enormous benefits to motorists and car makers,' she added.

The research also predicted that 84.6 percent of all cars shipped in 2016 will include some form of telematics system, while aftermarket sales of the products will rise from just under five million units in 2008 to around 16 million in 2016.

A previous study from iSuppli claimed in-vehicle infotainment systems should adopt the plug-in technology which was used by early PCs to increase the number of features offered to drivers.
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