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Rapid expansion projected for Chinese Telematics market

Posted: 18 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:in-vehicle telematics? OnStar System? CARWINGS? Chinese automobile market?

According to recent forecasts by IMS Research, OEM in-vehicle telematics in china will soon become a billion dollar market. The IMS study entitled "The Chinese Market for In-Vehicle Telematics Systems C 2012" projects the total market revenue to reach $2.4 billion in 2019.

OEM in-vehicle telematics systems, such as GM's OnStar system and Nissan's CARWINGS system have been in the Chinese market for some time. However, more and more vehicle manufacturers, both multinational and domestic, have plans to launch their own telematics systems within the next two years.

Michael Liu, senior market analyst with IMS Research's Automotive and Transport Group comments: "There're some major reasons for the promising future of this market. First, more and more telematics systems can provide real-time traffic information to drivers, which can greatly improve traffic efficiency and decrease fuel consumption, thus making driving more eco-friendly. Second, most telematics systems provide accident-assist services, which can lower down the damage and casualties caused by traffic accidents. Third, providing telematics products will be valuable to vehicle manufacturers, since it can not only improve their after-sale service quality, such as providing more convenient and frequent software updates to customers, but also help them gain lots of valuable customer information like driving habits which is valuable for their future product design and marketing."

In addition to these reasons, driving is also forecast to become increasingly automatic in the near future with the uptake of advanced driver assistance systems, thus making it possible for drivers to spend more time safely using in-vehicle communication and entertainment. In addition, more electric vehicles (EVs) will be produced and sold in China in the future, and most EVs are forecast to be equipped with telematics systems. This is because EV drivers will need to pay more attention on how much battery charge is left or where is the closest charging station.

Considering all the above, IMS Research forecasts the fitment rate of OEM in-vehicle telematics systems will increase quickly to 34.5 percent in 2019, meaning one in every three light vehicles sold in China then will be equipped with these popular systems.

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