In-car wireless connections are set for “tremendous” growth, according to a new study released Tuesday by Frost & Sullivan.
The study predicts that the telematics market in North America will grow to $7 billion in 2007, compared to $380 million in 2000. Telematics can include applications such as navigation systems, remote vehicle diagnostics and Net connections.
The growth will come when automakers successfully market telematics so that average car buyers consider it a “must-have” feature, according to Frost & Sullivan analyst Joerg Dittmer.
“So far, the telematics market has been characterized by the ‘push’ from automakers rather than the ‘pull’ from vehicle buyers,” Dittmer said. “Telematics must extend its appeal beyond technology lovers to mainstream car buyers.”
The study also said that telematics systems must be standardized to foster widespread adoption and specifically cited the work of the Automotive Multimedia Interface Collaboration (AMI-C), which is attempting to develop an open architecture specifications for in-car information, communications, and entertainment systems.