This report provides a high level analysis of the key services that could enable a future mass market for telematics in Europe. It does so by considering the individual market drivers for each of nine stand alone
applications before building a complete picture of their relative
importance and interrelationships.

The report identifies key trends for both OE and aftermarket services and provides SBD’s considered opinion on how this balance will
evolve up to and beyond 2010.

Telematics has the potential to benefit Governments, insurance companies and vehicle manufacturers but all parties are reluctant to fund the necessary in-car system. Instead, they would prefer to
piggyback their services off a system installed at someone else’s expense. The key players are therefore involved in a form a telematics brinksmanship to see who will be compelled to fit hardware
to all vehicles first.

The telematics market has changed dramatically in recent years, from one dominated by xxxxxxx xxxxxxxxxxxxx to one where their influence has been marginalised by the business needs and policy objectives of the xxxxxxxxx industry and xxxxxxxx xxxxxxxxxxx respectively.


The key challenge for all parties involved in telematics will be to move from the current situation, where each service requires a xxxxxxxxx incar system, to a future scenario where all applications are supported
on a xxxxxx xxxxxxxx. This transition will be led by two stakeholders:


* Vehicle manufacturers ~ if xxxxx becomes standard in all vehicles from 2010 onwards.


* Governments ~ if xxxxx has not been deployed by the time the first countries want to launch a national xxxx xxxx xxxxxxxx xxxxxx in the period 2013 – 2015.


The innovation and market drives for telematics in Europe is currently coming from aftermarket solutions such as xxxxxxxxxxxxx xxxxxxxxx and updateable content for xxxxxx xxxxxxxx xxxxxxxxxx systems. In addition, Governments are also considering the safety benefits of xxxxx and the opportunity to reduce congestion and to generate revenues through xxxx xxxx xxxxxxxx xxxxxxx.


The on-going delays in the development of a pan-European xxxxx service have resulted in the majority of vehicle manufacturers adopting a xxxxxxx approach to telematics. The only real growth is coming from
xxxxxxxxx xxxxxxx xxxxxxxxxxx to enable dynamic route guidance and
pan-European xxxxxx xxxxxxx xxxxxxxx systems to satisfy the
increasing demands of insurers.