According to Steve Millstein, President and CEO of ATX Group, a new generation of data-centric services gradually emerging today in the international telematics market eventually will transform the traditional telematics business model away from annual service subscriptions for primarily emergency-related, location-based services. The core benefit of future telematics services will likely be, always-on, virtual connectivity with the vehicle, enabling telematics to become standard on every vehicle.
"What we've long considered as the basic tenets of the telematics business will change, essentially becoming ancillary, added-value benefits to a new core of services that leverage the fact the car is simply a node on an information network," said Millstein. "These new services will be data-centric and will integrate vRM (vehicle relationship management), driver interactive vehicle applications (DIVA), voice-activated Web access into the vehicle, information about the environment in which the vehicle is operating as well as real-time, diagnostics information about the vehicle's operation and performance. However, unlike subscription services today, automobile manufacturers will continue to include basic telematics services in the total price of the vehicle because their customers now expect them."
The gradual transformation of telematics operations from call-center environments into data management centers has begun, driving the expansion of current telematics programs in both North America and Europe and providing new incentive for additional automobile manufacturers and other players — new to telematics — to enter the market.
"T3, or third generation, telematics services will transform every vehicle into a voice browser, a data router, and a node on a wireless communications network," Millstein added. "The result will be continual, real-time access to valuable information about the vehicle and its performance, its environment, and its connectivity to the owner and driver."
Millstein cited four specific areas where telematics is in the process of expanding beyond its traditional core of location-based emergency, security and navigation services:
WEB ACCESS
Recent advances in the integration of natural language voice technology into the vehicle has finally enabled the delivery of an IP address to the driver's seat. Content providers are now ready to deliver "geo-casts" - information that could be pushed or pulled to the vehicle depending on customer choice. This enhanced information - most notably navigational directions, pinpoint location, and localized point-of-interest information - will yield more relevant value to drivers and replace much of the navigational-oriented information currently provided through embedded and aftermarket navigation devices.
DRIVER INTERACTIVE VEHICLE APPLICATIONS (DIVA)
DIVA applications enable the driver to continuously communicate with his vehicle, using any networked communications device to remotely control vehicle functions, to poll the car and its browser for information, or to download information to the car.
VEHICLE-GENERATED DATA
Remote diagnosis of the car's environment - In the past, remote polling of vehicles has primarily focused on potential traffic flow information, but in fact the car can also probe in real-time the temperature, precipitation, air quality and road conditions at any given location as well as in-vehicle consumer behavior.
Remote diagnosis of the vehicle's actual performance - To date, vRM or vehicle relationship management (measuring the actions of the vehicle and its driver/owner and customizing services based on those actions) has been primarily associated with diagnosing "under the hood" problems prior to a vehicle's arrival to the service bay. Tomorrow, data pulled from the vehicle will be used to better manage aftermarket parts and service, warranty and maintenance, leasing and financing, and to assist in the process of insurance claims.
Millstein cites two key developments in North America that signal the emergence of T3 applications - BMW's decision to incorporate the four-year cost of its Assist telematics service, provided by ATX, into the MSRP of its vehicles and General Motors' decision to make its telematics service standard on every one of its vehicles. As a result, other Japanese and American automobile manufacturers are working on telematics deployment plans in North America.
Wirelss Fleet Management Telematics Grows to $300 Million by the End of 2007
4/23/07 - After a long period of slow activity, Chinese commercial telematics has seen rapid growth over the past two years. The Chinese market for fleet management systems (FMS) is expected to be worth in excess of $300 million by the end of 2007, according a new study from ABI Research.
By 2012, the value of this market is expected to be nearly $786 million. Subscriber numbers will reach 2.6 million by the end of 2012, with a compound average annual growth rate of 46%. The summer Olympic Games in 2008 in Beijing and the World Expo in 2010 in Shanghai are expected to trigger an explosion in the commercial telematics market. Most of the taxis and public buses in these two cities have GPS-enabled fleet management systems installed.
"The taxi and bus monitoring and tracking market has a penetration rate of 80% in this region," says Wang Tao, ABI Research analyst. "We forecast rapid growth for the Chinese commercial telematics market, particularly because of the intense competition among short-range specialty logistics companies and couriers, who are implementing FMS to increase their delivery efficiency and competitiveness."
The research indicates that the growth of the logistics and transport markets will drive a rapid development of the Chinese fleet management market, with hardware shipments showing a compound annual growth rate of 23%.
Wang Tao notes that, "Monitoring and tracking are the basic services of China's commercial telematics market, in strong demand for taxis, special cars, and logistics and transportation services. Due to the requirements of the road safety and security laws, vehicle data records are another standard function for fleet management system in this region."
ABI Research's new study, "Fleet Management Systems in China" identifies the requirements of different market segments, and discusses the opportunities and challenges of Chinese commercial telematics. The report shows how laws and regulations will impact the development of this market, and presents Chinese fleet management market forecasts for hardware shipments, subscribers, service value, and total market value. It forms part of the firm's Commercial Telematics Research Service, which includes other Research Reports, Research Briefs, Market Data, Online Databases, ABI Vendor Matrices, ABI Insights, and analyst inquiry support.
Keywords: fleet management systems, telematics market, research fleet, fleet management system, annual growth rate, logistics companies, abi, china, fms, rapid growth, taxis, tao, 300, special cars, delivery efficiency, slow activity, transport markets, RFID
By Robert Hoskins
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P.S. QTK sadly didn't make the distance...SMA IS!!!
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