NEW YORK — Automotive telematics and navigation — including hardware and services — will experience strong growth in several world regions, generating in total revenues of $38.3 billion in 2011, according to a new study by ABI Research.

"Telematics and navigation systems are converging," says transportation research associate Steve Bae.
"While telematics systems can bring peace of mind to customers by providing security, safety, and other convenience features such as news, weather, and concierge services, current navigation systems can offer more than simple directions from point A to B by applying layers of traffic and weather information to routing schemes. Combining two technologies brings existing and new industry players greater flexibilities to offer new products and address niche markets."

Increasingly, says Bae, digital radio is being seen as viable "data pipe" for converged navigation/telematics services, particularly for real-time traffic information, which is a key selling-point for automotive navigation.

Navigation and telematics both require current location data for their core functions and are mainly designed for in-vehicle use. At present, the GPS is the mechanism of choice for all server-based navigation systems. In 2008 and 2009 other satellite systems are expected to launch: Galileo in Europe and Quasi-Zenith in Japan. Both will be complementary to the GPS system, and, says Bae, "They will promote navigation technology sales in their regions, but they will also create some initial confusion in the markets."

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