Is Live Traffic a Telematics Killer App!

Telematics: Traffic used to be delivered through AM or FM radio and generally did not tell you anything you did not already know. But this is all changing with satellite-based navigation systems -- many of which are emerging with a radio receiver that gives you traffic reports for your current location.

The proliferation of GPS-based navigation devices has fueled consumer demand for live or predictive traffic data. After all, what good is a plotted route if it doesn’t consider traffic conditions.

But providers of live traffic data face challenges because the market is fragmented among suppliers of content. This fragmentation reflects the variety of sources of raw traffic information including airborne helicopters and planes, road sensors, cameras, Department of Transportation (DOT), sensor-equipped vehicle fleets (a.k.a. probe cars) and human observers.

The data from these disparate sources of traffic flow is being aggregated in different ways but ultimately is delivered to navigation devices or through telematics services. An emerging capability for live traffic reports will include predictive traffic analysis (based on historical data or, in some cases, taking into account local events).

In the end, dynamic content such as traffic reports has value to many people who use navigation systems or services. The services opportunity is appealing for content providers or network operators who see not only navigation devices but mobile phones as the ultimate goal in the delivery of location-based content.

The subscriber base for traffic information services to approach nearly 4.5 million by 2011 in the United States alone. worldwide, demand will be even greater. Suppliers that are able to deliver accurate and reliable real-time and predictive traffic data will be rewarded with revenue growth and market share gains. Today’s offerings come from ClearChannel, Traffic.com,M SmartRoute, LandSonar, and Inrix and represent the first generation of location-based traffic. These are the companies that recognize the potential market opportunities, adds TRG’s Magney

The future of navigation and traffic will include access to live roadway camera feeds, live routing and drive-time updates. And all of this content will be delivered to appropriately equipped cars, mobile phones and PNDs creating significant subscription revenue and hardware upgrade opportunities.

Telematics & Navigation Benefit from Real-Time Traffic Publ 20060724