Telematics and navigation systems are finally seeing the light of the day after being in obscurity for years as they are beginning to make a mark in the passenger vehicles market. This greater consumer interest has been backed by drop in prices as a result of focused marketing and decreasing costs of components.
New analysis from Frost & Sullivan on ?Passenger Vehicle Telematics and Navigation Systems? finds that the market earned revenues in the country is estimated around $23.2 million in 2008 and the same is expected to reach $44.1 million in 2013.
Global Positioning System (GPS)-based security systems are breaching the confines of the luxury vehicles segment and are making foray into other car segments. Car manufacturers are catalysing the permeation by tying up with navigation systems suppliers to reduce the gap between customers and the products. Such urgent measures are necessary to tap the large addressable market, which comprises vehicles in operation as well as new ones.
Both passenger vehicle telematics and navigation systems have significant scope for uptake due to workers? increasing mobility. Passenger vehicle fleets are becoming more complex as employee bases are constantly expanding, making it necessary to reschedule routes accordingly. This makes a solid case for passenger vehicle telematics, while navigation systems thrive on the improvements in wireless communication and road infrastructure.
?The increase in long distance-driving for recreation and exploration purposes and the rise in instances of employee transfers to other states where language barriers exist have boosted the prospects of navigation devices. Moreover, with the demands for safety and fuel optimisation becoming priorities among fleet hirers, telematics is seen as the most efficient solution,? says an analyst with Frost & Sullivan.
To fully tap the potential of the market and lower fleets? resistance to change, participants will have to combat the low-value tag attached to their products. Further, drivers are reluctant to adopt these technologies because they are averse to being tracked.