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Frost & Sullivan Report: Legislations in Europe and Russia to Boost Telematics Systems Market


December 06, 2012

By Colleen Lynch, TMCnet Contributor


Frost & Sullivan (News - Alert) conducted an analysis to determine key trends and forecasts for automotive navigation and telematics services market in Western and Eastern Europe and Russia, and the findings suggest a shift toward integrations and low-cost connected navigation for the next couple of years.


Additionally, smartphone replication technologies and smartphone-based navigation options for cars will reportedly dominate the market soon. European companies dealing with such technologies, such as eCall in Europe and ERA-GLONASS in Russia, will lead the region to become one of the biggest markets for telematics systems in the world.

The survey, available here, predicts the market size for navigation systems in Europe will reach 19.3 million units by 2016, with smartphone navigation subscribers growing to 413.2 million. 


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In addition, new telematics service subscribers will grow to 5.2 million by the same time.

“Mobile phone-based telematics systems will be popular in Europe owing to high smartphone penetration and lower costs,” explained Krishna Jayaraman, senior research analyst for Frost & Sullivan. “Smartphone replication technologies and navigation applications will usher an era of low-cost navigation, an area which used to be dominated by PNDs. The eCall mandate will drive the market for telematics services.”

In Russia, the navigation system market will reach an estimated 2.5 million units by 2016, and subscribers will hit approximately 4.4 million. New telematics service subscribers will also grow to a reported 415,000 by 2016.

“Packaging of multiple services and offering them at attractive prices is the key to competitive survival. OEMs will face the challenge of upgrading their system offerings with the latest human machine interface (HMI) to ensure consumer interest,” noted Jayaraman. “Customer reterntion will lie in providing value-added services and smart pricing.”

PND manufacturers have been venturing into the OE business for a short time already, and so this prediction is in good faith. Real-time traffic information, local search and other connected services will combat the slide of PNDs, and result in an upward trend across Europe.

As such, connected and value-added services will prove to be vital factors in creating this uptake of navigation solution services throughout the continent,

The ultimate goal is to penetrate the market, and the smartest way to do this, according to the Frost & Sullivan survey and other pertinent sources, is to develop a low-cost portfolio to ease mass market penetration.

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Edited by Brooke Neuman

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