In a new report, ABI Research (News - Alert) estimated that more than 30 million new cars with onboard telematics (automobile navigation system) units will ship by 2013. The research firm expects that solutions such as General Motors’ (News - Alert) OnStar and Ford’s SYNC will soon become standard features for all new passenger cars in the U.S.

 

One of the major reasons for the increase in telematics, ABI said, is rising demand for infotainment services in cars. Real-time location-based content such as traffic, fuel prices, parking space availability and tourist information is also popular.

 

“Consumer Telematics systems are becoming more popular due to the growing awareness of car manufacturers, telematics service providers, governments, and drivers about the benefits of positioning and communications technologies in cars for improved safety, security, efficiency, convenience, infotainment, cost savings, and reduced environmental impact,” said ABI analyst Dominique Bonte. “By 2013 more than 30 million new cars will ship with on-board telematics units, representing a penetration of nearly 44 percent.”

 

By 2011, all telematics units must provide support for emergency calls. In Europe, the eCall project is working to make this possible. Elsewhere, automobile makers such as Toyota, Nissan, Honda (News - Alert) and Hyundai in Asia-Pacific have been offering OEM telematics solutions since 2002—providing emergency and convenience applications such as remote diagnostics, concierge services and remote door unlock.

 

After years of technological blockade and slow growth, the telematics technology is all set to zoom on the roads.

 

While the widespread use of navigation devices has educated consumers about positioning technology, ABI noted, GPS technology has matured and flat-fee data communication tariffs are becoming globally available. The aftermarket for telematics solutions used to track stolen vehicles assist with insurance applications in existing vehicles, are expected to register undergo strong growth. Teenage driver tracking and speed monitoring are two other telematics applications with strong potential.