Despite Slow Start, Satellite Digital Radio Industry Will Flourish, According to New Digital Car Study From ABI

Apr 25, 2001, 01:00 ET from Allied Business Intelligence

    OYSTER BAY, N.Y., April 25 /PRNewswire Interactive News Release/ --
 Although 2001 will mark a disappointing launch for satellite-based digital
 audio radio services (SDARS) broadcasters, XM Satellite Radio and Sirius
 Satellite radio, they will ultimately benefit from increased consumer uptake
 and large recurring service revenues. By 2006, recurring annual service
 revenues for SDARS will reach $350 million, according to the findings in "The
 Digital Car: A Strategic View of Global In-Vehicle Communications Technologies
 and Next-Generation Telematics Systems," a new study from Allied Business
 Intelligence (ABI).
     "Despite getting off to a slow start later this year, US satellite-based
 digital audio radio services will be driven primarily by the automotive OEMs,
 similar to the telematics model with GM and OnStar," said ABI senior analyst,
 Frank Viquez, the author of the report. "The motivation on the part of the
 OEMs will come from the large investment stakes they have in XM and in Sirius,
 as well as the effort to drive new revenue streams from mcommerce and other
 value-added services when SDARS are coupled with telematics systems in the
 future."
     Evolving telematics platforms such as Java will enable the seamless
 integration of additional services and system upgrades. The study examines
 SDARS and other future telematics applications such as remote vehicle
 diagnostics, real-time traffic information and server-based navigation.
     The world telematics market for personal vehicles will rise from
 $3 billion in 2000 to almost $13 billion by 2006, while recurring annual
 revenues for services alone will account for over $4 billion of that 2006
 total, according to the study's findings.
     The level of electronics in a vehicle has been steadily growing through
 the years, and today, encompasses everything from the audio system to braking
 and powertrain controls. As more computing power is added to the vehicle, the
 auto industry has realized that the automotive design cycle cannot keep up
 with the electronic design cycle, so the need for a common, high-speed
 in-vehicle data bus has become abundantly clear. The study outlines industry
 efforts to define a common set of data bus standards along with its progress
 and comparisons of emerging solutions, such as IEEE 1394b, Media-Oriented
 Systems Transport (MOST), IDB-C, FlexRay and Bluetooth.
     Allied Business Intelligence Inc is an Oyster Bay, NY-based technology
 research think tank specializing in communications and emerging technology
 markets. ABI publishes strategic research on the broadband, wireless,
 electronics, networking and energy industries. Details of these studies can be
 found at http://www.alliedworld.com. Or call 516-624-3113 for more
 information.
 
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SOURCE Allied Business Intelligence
    OYSTER BAY, N.Y., April 25 /PRNewswire Interactive News Release/ --
 Although 2001 will mark a disappointing launch for satellite-based digital
 audio radio services (SDARS) broadcasters, XM Satellite Radio and Sirius
 Satellite radio, they will ultimately benefit from increased consumer uptake
 and large recurring service revenues. By 2006, recurring annual service
 revenues for SDARS will reach $350 million, according to the findings in "The
 Digital Car: A Strategic View of Global In-Vehicle Communications Technologies
 and Next-Generation Telematics Systems," a new study from Allied Business
 Intelligence (ABI).
     "Despite getting off to a slow start later this year, US satellite-based
 digital audio radio services will be driven primarily by the automotive OEMs,
 similar to the telematics model with GM and OnStar," said ABI senior analyst,
 Frank Viquez, the author of the report. "The motivation on the part of the
 OEMs will come from the large investment stakes they have in XM and in Sirius,
 as well as the effort to drive new revenue streams from mcommerce and other
 value-added services when SDARS are coupled with telematics systems in the
 future."
     Evolving telematics platforms such as Java will enable the seamless
 integration of additional services and system upgrades. The study examines
 SDARS and other future telematics applications such as remote vehicle
 diagnostics, real-time traffic information and server-based navigation.
     The world telematics market for personal vehicles will rise from
 $3 billion in 2000 to almost $13 billion by 2006, while recurring annual
 revenues for services alone will account for over $4 billion of that 2006
 total, according to the study's findings.
     The level of electronics in a vehicle has been steadily growing through
 the years, and today, encompasses everything from the audio system to braking
 and powertrain controls. As more computing power is added to the vehicle, the
 auto industry has realized that the automotive design cycle cannot keep up
 with the electronic design cycle, so the need for a common, high-speed
 in-vehicle data bus has become abundantly clear. The study outlines industry
 efforts to define a common set of data bus standards along with its progress
 and comparisons of emerging solutions, such as IEEE 1394b, Media-Oriented
 Systems Transport (MOST), IDB-C, FlexRay and Bluetooth.
     Allied Business Intelligence Inc is an Oyster Bay, NY-based technology
 research think tank specializing in communications and emerging technology
 markets. ABI publishes strategic research on the broadband, wireless,
 electronics, networking and energy industries. Details of these studies can be
 found at http://www.alliedworld.com. Or call 516-624-3113 for more
 information.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X51722431
 
 SOURCE  Allied Business Intelligence