Telematics vendors seem to have consistently overestimated the U.S. market demand for their products and services. This ongoing optimism is clouding manufacturers' perspectives and hindering them from facing key issues that must be resolved before a significant share of U.S. consumers are willing to pay for in-vehicle ITS and telematics products and services. If past survey-based projections do not provide realistic, solid current and future U.S. telematics market indicators, what can companies rely on? This paper suggests three key consumer-based market catalysts to help OEMs grow market demand in the U.S. for telematics. The focus of these three catalysts of market growth, center on providing real or perceived benefits that will in turn create sufficient consumer desire to make a purchase decision. Telematics vendors have consistently overestimated the U.S. market demand for their products and services. This ongoing optimism is clouding manufacturers' perspectives and hindering them from facing key issues that must be resolved before a significant share of U.S. consumers are willing to pay for in-vehicle ITS and telematics products and services. Over the past five years, the term telematics has been applied to ITS mobile information and emergency safety systems appearing in automobiles and other vehicles. Telematics devices usually incorporate global positioning system technology, wireless communications, onboard information and other systems that keep the driver abreast of location, travel and traffic information, automotive performance, safety and provide wireless connections to the outside world for personal services. Sometimes, the definitions also include entertainment and infotainment.
Abstract