The unique features offered in the South Korean telematics services such as safety, security and emergency assistance are expected to drive demand for the telematics industry.
South Korea is one of the top six passenger car manufacturing countries in the world. With 16 million cars on the road in 2006 and a low penetration rate for telematics, the country is considered as a high growth market for telematics.
With the high density of vehicles, traffic congestion is a major problem in cities such as Seoul. "Telematics services such as live traffic information and navigation provide a great respite and are likely to drive the demand for telematics," says Ms. Samjeen Yun, Research Analyst at Frost & Sullivan.
New analysis from Frost & Sullivan (automotive.frost.com), Korean Passenger Vehicle Telematics Markets, estimates the market to grow at a CAGR of 55.4 per cent to reach US$635 billion in 2013 from US$30.33 billion in 2006.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Korean Passenger Vehicle Telematics Markets (P0BE-18), then send an email to Alice Chia, Corporate Communications, at alice.chia[.]frost.com with your full name, company name, title, telephone number, fax number, and email address. Upon receipt of the above information, an overview will be sent to you by email.
Yun also noted that the South Korean Government understands the importance of telematics and is promoting the segment as one of the nine new engines of economic growth under the IT839 strategy, unveiled in 2004. The strategy is designed to make South Korea one of the leading IT powerhouses in the world.
"Considerable investments to develop telematics infrastructure and platforms can be expected, which in turn will drive market growth in the medium and long term," she adds.
However, high system prices and the lack of consumer awareness are restricting the usage of telematics systems to high end customers.
Telematics systems also face competition from stand-alone navigation systems, which offer similar functions such as navigation, route guidance at a cheaper price.
"This affects telematics market growth in the original equipment market," Yun says.
Korean Passenger Vehicle Telematics Markets is part of the Transportation Growth Partnership Service. It provides an overview of the telematics market (systems and services) in Korea with extensive discussions on the market drivers, restraints, industry challenges, revenue forecasts, competitive structure, and strategic recommendations. Interviews with the press are available.
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