Traffic service market to hit $4.7B by 2014

Wireless world
The distribution of traffic information to navigation devices requires one-way broadcast technologies or two-way connectivity via cellular modems. Broadcast via FM or other wireless signals, the traditional method of delivering such services, accounts for more than 83 percent of the total market for delivery of traffic information.

Broadcast traffic subscribers are forecasted to increase to nearly 57 million in 2014, up from 15.5 million in 2008, rising at a compound annual growth rate (CAGR) of 24 percent. Japan in 2008 accounted for the largest share of the broadcast traffic segment—about 8.8 million—representing slightly more than half the global users. Western Europe accounted for 3.7 million of the broadcast subscribers, or 23 percent.

In the next five years, Japan's share will decline as the United States, China and other regions use more broadcast traffic information.

The distribution of traffic data on devices with two-way wireless (i.e., cellular) represents a relatively small segment of the market, with 3 million subscribers estimated for 2008. Owing to the rapid growth of off-board navigation and on-board navigation for smart phones and mobile phones, two-way traffic is expected to grow strongly and will reach nearly 128 million users in 2014, representing a CAGR of more than 86 percent from 2008.

"The biggest opportunity for navigation-related content—including real-time traffic—is through two-way distribution to navigation systems and smart phones," Magney said. "To compete with free or low-cost broadcast traffic information, two-way solutions offer more capability, such as the ability to offer multiple routing options based on favorite routes or common destinations. Estimated time of arrival is often presented based on historical traffic patterns, road construction, or incidents. In the near future, customers will increasingly expect their device to tell them more than how to get from point A to point B."

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