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| G2 Says Significant Uptake in Consumer Adoption for Telematics Services Won't Occur before 2005 |
| Analysts Say Telematics Services Will Only Be Successful as an Integral Part of a Broader, Mobile Service Offering that Extends Beyond the Vehicle |
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SAN JOSE, Calif., October 2, 2002 - Even though consumer interest in telematics is increasing, a significant increase in consumer adoption for telematics services won't occur before 2005, according to GartnerG2, a research service of Gartner, Inc. (NYSE: IT and ITB). A recent GartnerG2 survey found only 1.3 percent of U.S. households expect to choose telematics services in a new vehicle in the next 12 months.
In May and June of 2002, GartnerG2 surveyed 5,835 U.S. adults (18 years and older) via mail to gauge their interest in telematics, and how they might use telematics today and into the future. "Consumers' primary interest in telematics continues to center around non subscription-based communication, safety and security needs that are directly related to the vehicle," said Thilo Koslowski, lead automotive analyst and research director for GartnerG2. The survey showed that nearly 50 percent of U.S. consumers are likely or very likely to get a telematics application in their next new vehicle that allows them to use their cell phone in a hands-free, voice-activated manner. Nearly two-fifths of consumers want a SOS button that connects to emergency services, and one-third want a vehicle-tracking application that will help recover their vehicle in case of theft. Internet and PC-like telematics applications continue to be in low demand as less than 10 percent of U.S. consumers are likely to get telematics applications that provide access to the Internet from the vehicle, send and receive e-mails or purchase products. "Current telematics services are tied to the vehicle, and offer only limited appeal for the prices of service subscriptions," said Koslowski. "To boost consumer demand for telematics services in the long-term, new business models are needed. Telematics offerings need to become an integral part of a broader mobile service offering that addresses consumers' information and communication needs at home, work and in the vehicle." GartnerG2 analysts recommend that automakers, suppliers and telematics providers identify consumers' telematics preferences first and leverage flexible technologies to satisfy their changing needs over time. In the short-term, companies should develop solutions that require minimum resources, but provide the ability to upgrade to more comprehensive services in the future. For example, telematics companies could provide connectivity to mobile services that are not limited to the vehicle via Bluetooth or other short-range, wireless technologies. Telematics companies should expand into new markets to ensure short-term survival and to prosper from telematics offering in the long-term. Immediate revenue from non-telematics markets and a revised approach for the long-term is the best strategy for telematics companies today. "Telematics and wireless data services are each specifically designed to address consumers' mobile information and communication needs. Specialized telematics applications can easily be targeted at other mobile devices outside the vehicle to provide location-based and point-of-interest information. This will allow pure-breed telematics companies to enter more market segments and diversify target markets," said Koslowski. "At the same time, they shouldn't abandon the telematics market. Although the next two years will be challenging, telematics are here to stay." Additional information is available in the GartnerG2 report, "Telematics Industry Outlook: Think 'Outside the Vehicle'." This report examines the changing dynamics of the telematics industry and provides recommendations to telematics companies on what to do to ensure short-term survival and prosper from telematics offerings in the long-term. Koslowski will provide additional insight into the future of the automotive industry at Gartner Symposium/ITxpo 2002, October 6-11 in Orlando, Florida. Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. For more information, please visit www.gartner.com/symposium. Members of the media can register by contacting Maria DiMasi at 212-699-2734, or by e-mail at gartnerevents@eurorscg.com. GartnerG2 is a research service from Gartner that helps business strategists guide and grow their businesses. For more information on the report and about GartnerG2 services, please visit www.gartnerG2.com. About Gartner |
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Contact: Christy Pettey Gartner +1 408 468 8312 christy.pettey@gartner.com |
