Automotive applications fuel uptake of wireless connectivity technologies in Europe

Automotive applications fuel uptake of wireless connectivity technologies in Europe

Frost & Sullivan says that wireless technology integration strategies would enhance the value proposition of vehicles by integrating advanced electronics systems such as infotainment systems, safety and stability systems, and comfort and convenience enhancement systems.

According to new analysis from Frost & Sullivan, the market earned revenues of more than €279 million last year, and this is estimated to reach almost €900 million by 2015.

Frost believes there will be increasing demand for wireless connectivity between hand-held electronic entertainment / infotainment devices and the head unit of the car, driven by EU legislation, safety issues and the soaring popularity of personal music storage devices.

In 2008, the market was represented by Bluetooth, which was used to for hands-free cellular phone applications and music streaming, and Frost expects Bluetooth to remain the key wireless technology – at least until 2013.

The major obstacle preventing car manufacturers from implementing wireless technologies is the lack of infrastructure.

"It is difficult to foresee which course a nascent technology may take," says Vinod Nookala. senior research analyst at Frost & Sullivan. "The implementation of wireless technologies inside a vehicle requires a blend of functionality from wireless carriers and suppliers to form optimal and effective pricing models. This is especially true in Europe, where a strong existing mobile network creates a reluctance to pursue any alternatives."

Alliances with mobile network providers and mergers and acquisitions are some of the measures to tap into this market. Wireless telematics can be an effective tool for intelligent traffic management systems.

"Public and private partnerships will aid in opening up new avenues," concludes Vinod, adding that manufacturers should work together to accelerate the process of standardising automotive communication standards.

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