OYSTER BAY, N.Y. (Aug. 5, 1999) — The telematics market — in-vehicle information systems — will be one of the most robust segments of the burgeoning intelligent transportation systems (ITS) marketplace, according to a new study from Allied Business Intelligence.

The in-vehicle information systems market for personal and commercial vehicles will rise from $300 million US this year to $5.1 billion in 2003, according to the report, called “ITS ’99: In-Vehicle Navigation and Communications Technologies, Global Markets, and Forecasts.’ In-vehicle navigation has already seen acceptance overseas, and will account for a global market of $16 billion by year-end 2004.

Fuelling growth are rising traffic levels, the increase in time spent in a vehicle, and the aggressive nature of those behind the wheel, which has led many to see themselves as professional drivers and in need of the latest communications technology, said the study’s author, Larry Swasey.

“Those who actually need to be in a vehicle are also taking advantage of the plethora of services ported from the Internet and leading to driver-specific applications such as weather, traffic and location-based information,” he said. “Much has been made available to the masses as GPS units fall in price.”

Telematics application include in-vehicle computing, navigation, and location-based services. Collision avoidance systems, obstacle detection devices, and adaptive cruise control systems will also realize significant growth, rising from a $403 million market in 1999 to a $31 billion market worldwide by 2005.

“These technologies are designed to save the driver from the increasing number of hazards created by the close to 600 million vehicles on the world’s roads and a reluctance to build more high-cost routes for them,” the report said.