LONDON, March 28 /PRNewswire/ -- Annual revenues from telematics equipment sales in Europe will be over $2.5 billion by 2006, according to a new study from The Strategis Group. Thanks to the development of standardized and increasingly capable equipment and services, the overall number of original equipment manufacturer (OEM) and after-market devices sold each year is expected to rise from a total of 770,000 units in 2001 to 8.7 million units by 2006 according to the report, European Vehicle Telematics: Technologies, Value Chain and Market Entry Strategies. Europe's five largest automotive markets (Germany, Italy, France, UK and Spain) are expected to account for 84% of these sales by 2006. "The increasing use of standardized technology and protocols is helping to reduce the cost of developing telematics systems, as well as promote device and service interoperability," notes Jamie Moss, analyst with The Strategis Group. "As a consequence, future generations of telematics devices will be able to be easily updated to offer an increasing variety of services." OEM and Aftermarket Telematics Device Sales (millions), Top 14 European Markets, 2001-2006 Year 2001 2002 2003 2004 2005 2006 OEM .46 1.03 1.88 3.02 4.63 6.66 Aftermarket .31 .52 .78 1.12 1.54 2.04 Total .77 1.55 2.67 4.14 6.18 8.70 Source: The Strategis Group, Inc. "The vehicle buying public simply did not perceive the devices as offering adequate value for money and as a result, telematics devices have languished in the luxury vehicle market," Moss adds. "However, proposed new features and competitive pricing are set to change all that." The in-vehicle environment, which features LCD/TFT screens rather than a WAP browser, can offer the perfect environment for content-rich multimedia services. As Karl Emanuelsson, analyst with The Strategis Group says, "We will soon see a blurring of the divisions between the various mobile information devices available to drivers -- telematics systems, navigation systems and mobile communications devices will become increasingly intertwined to provide the consumer with a unified communications and information solution." European Vehicle Telematics: Technologies, Value Chain and Market Entry Strategies analyses the development of the passenger vehicle telematics market within the top 14 automotive markets in Europe, providing forecasts for unit sales, market penetration, equipment revenues and service revenues from 2001 until 2006. The report features interviews with 41 key companies currently active within the European arena, from vehicle manufacturers to mobile operators. The Strategis Group will hold a free conference call on Monday, April 2, 2001 at 3:00 p.m. UK (10 a.m. EST) to discuss findings from European Vehicle Telematics: Technologies, Value Chain and Market Entry Strategies. Interested participants should contact Mehdi Boussebaa at MBoussebaa@StrategisGroup.com to obtain call information. There will also be a replay number for those who cannot call in at the scheduled time. The Strategis Group, a C7 company -- with offices in Washington, DC, London, Singapore, and Sao Paulo -- publishes in-depth market research reports, provides customized consulting services, and supplies continuous information solutions to the broadband, wireless, cable TV, satellite, Internet and competitive telephony industries. The Strategis Group's focus is pure telecommunications, providing strategic information to decision makers in the dynamic global marketplace. For more information, please contact an account executive at Voice: 44-207-363-5600, Fax: 44-207-363-5610, (UK-Email) Europe@StrategisGroup.com or (US-Email) Sales@StrategisGroup.com.
SOURCE The Strategis Group