Asia News: Unique service features boost demand in South Korea’s telematics sector

Asia News:  Unique service features boost demand in South Korea’s telematics sector

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, says Frost & Sullivan.

South Korea is one of the top six passenger car manufacturing countries in the world, and with more than sixteen million registered cars clogging up urban roads, real-time traffic information services are expected to boost the country’s telematics market.

According to new analysis from Frost & Sullivan, Korea’s passenger vehicle telematics market is predicted to grow at a CAGR of 55.4% to reach US$635 billion in 2013 from US$30.33 billion in 2006.

Frost & Sullivan research analyst, Ms Samjeen Yun, 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,” sais Ms Yun.

Increasing customer awareness, the need for automakers to differentiate their products, and increasing concern for road safety and connectivity will also drive growth in the Korean telematics industry.

However, the market faces challenges such as the absence of a standard map for the country, as well as high system prices – which restricts 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.

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