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Carmakers leverage on expertise to provide content services. Taiwan-based suppliers prefer hardware/software development.
Telematics is essentially the integration of telecommunications and informatics. Telematics technologies are being utilized to send, receive and store information via telecom devices. More recently, telematics has been further combined with GPS to create expanded applications in vehicle navigation and automobile/transport security.
Current telematics solutions have four important elements: the GPS device, wireless communication support (Wi-Fi, GSM, GPRS or 3G), a service platform and third-party content services. A standard telematics system has the capability to locate vehicles via GPS. With an on-board unit or device, the system can “diagnose” the vehicle and transmit the diagnosis to the service platform provider. The service platform provider collates the information, creates the database to link with third-party content providers, and supplies various services such as traffic information/advisory, roadside assistance and police assistance.
As telematics solutions involve a network of regional service providers, most telematics suppliers in Taiwan position themselves as hardware manufacturers that also offer technical help in building telematics systems. Meanwhile, the service providers come from the automobile manufacturing and portable navigation sectors.
There are three types of telematics systems in the market today. Makers refer to the first type as an original equipment (OE) system, embedded system or factory-fitted model. This is usually part of a car manufacturer’s vehicle design and is already purchased together with the car model. Such high-end devices are embedded systems capable of processing heavy and intensive computing tasks. Several car companies have created proprietary standards and service platforms, which they offer to buyers for subscription, such as General Motors’ (GM) OnStar and Honda’s Internavi Premium Club.
Taiwan makers choose to specialize in hardware and software solutions instead of providing telematics services. Systems & Technology Corp. (S&T) has a comprehensive GPS product line for entry-level to high-end buyers. It has its own mapping software maintenance team and GPS hardware design team.
S&T’s GIS software is also popular in the embedded system or OE system line. Its vehicle navigation software features a presentation style that minimizes driver distraction and an easy-to-operate, intuitive user interface. The system delivers a 3D wide-angle depth-of-field visual effect and provides eight destination location methods in route planning.
Bcom Electronics Inc., another OE system provider, mentioned that designing a new car takes a long process that stretches for about 24 to 30 months. Car telematics and/or infotainment devices are introduced into the design cycle on the 12th to 18th month. All prototypes have to be tested for a continuous 1,500hrs to ensure product safety. In designing its products, Bcom gives extra attention to steady power output, electromagnetic interference and safety features. The company’s car telematics/infotainment unit has become part of the design blueprint of some well-known automobile manufacturers.
Makers of industrial PCs (IPCs) also corner some share of the embedded system line. Seeing telematics as an opportunity, IPC makers market embedded systems as vehicle PCs. Because of their powerful CPUs, these products usually come with multiple functions.
Intel has released a highly integrated single-chip solution for products like vehicle PCs. The EP80579 integrated processor packs four major functions into one chip, with a much smaller footprint. The series is designed for applications in security, storage, communications and industrial robotics.
IPC maker iBase Technology Inc. has launched a vehicle computer platform, model ECX SBC, based on Intel’s EP80579 SoC family. The system is targeted at embedded storage, point-of-sale (POS) terminals, and in-vehicle communications and security applications. The product addresses the need for mobile Internet devices that require better and longer Internet connectivity. The model can be used as a GPS navigator, mobile DVR, car black box and automatic vehicle location (AVL) device in one.
Portable devices with network connectivity comprise the second type of telematics devices. Portable GPS or portable navigation devices (PND) and smart phones with GPS function are the most widely used products in this line. In this sector, it is the portable device makers such as TomTom, Garmin, Mio and Nokia that initiate the designing of service platforms.
TomTom estimates that the gadgets take up almost 70 percent of the market of in-car GPS devices. Due to the cost-effectiveness, high adoption rate and time-to-market technological flexibility of PNDs, PND makers have a good chance of succeeding as telematics service providers (TSP).
Mio Technology Corp., maker of the Mio brand of PNDs, said the line is currently focusing on hardware enhancements, better user interface and more content services. Suppliers are working on enhanced display features, voice guidance and command, embedded Bluetooth, multimedia entertainment and wireless connectivity. They also plan to provide local search, dynamic information, location-based services and point-of-interest services.
Although portable GPS and PNDs lead the line, mobile phone makers such as Nokia, Motorola, LG and Samsung are expected to become future leaders because of the increasing market penetration of mobile phones with advanced communication and navigation functions.
The third type of telematics system is adopted by niche markets for asset tracking and management, particularly in fleet management and geofencing. Multifunction AVL systems take the lead in this line.
AVL has evolved from simple GPS functions primarily to aid commercial fleet management. Supa Technology Co. Ltd offers model AVTS-1500, which tracks vehicles and collects GPS data in realtime. By keeping a record of driver activities, the product also helps in logistics and supply chain management. Its model AVTS-3000, a vehicle tracking and dispatch system, features GPS, GSM and GPRS and can connect to other devices for data transfer.
S&T has its own Intellitrac series of fleet management AVL systems. One of the models, the X8, features realtime tracking and voice wiretapping. It allows the control center or any particular phone line to monitor the conversation inside a car by enabling the microphone and disabling the speaker in the vehicle.
Worldwide, the telematics market is poised for growth, with total production projected to hit 11.7 million sets by 2011, according to TRG. Taiwan has approximately 50 suppliers of telematics-related products, 20 of which are focused on devices with navigation. Carmakers are the leading TSPs in most regions. They have formed alliances to promote technology development, helping accelerate market adoption and achieve economies of scale.