Telematics to focus on OEM ROI

SAE 100 Future look: It is no secret that a couple years ago many in the automotive industry wrote off telematics as a dead issue. That chapter has long since passed, and what you will see emerge in the coming years is a reborn telematics industry that has little resemblance to what we have seen in the past.

It is no secret that a couple years ago many in the automotive industry wrote off telematics as a dead issue. In North America, the concept of the vehicle as the last frontier for personal computing burst with the dot.com bubble. In Europe, the early implementers suffered from geographical limitations and being part of larger parent companies in which telematics was far removed from the corporate mission. In both markets, many of the players were simply chasing a promise of quick riches and market dominance for early movers.

That chapter has long since passed, and what you will see emerge in the coming years is a reborn telematics industry that has little resemblance to what we have seen in the past. Gone is the search for the killer consumer application. Gone will be the business model reliant solely upon selling annual subscription agreements. And much less critical to the model will be sole reliance on voice-based services. While telematics will always have an element of safety and security, in the future it will be tailored around the business needs of the OEM and the dealership, as much as it is the driver. It will be customized to address these specific needs and it will be data-centric. It will rely principally on off-board, not on-board technology, and it will adapt to any technology that penetrates the vehicle.