Europe News: eCall regulations will energise stagnant market

Europe News:  eCall regulations will energise stagnant market

Despite a twelve-month delay in rollout, the European Commission's eSafety initiative will invigorate the European eCall market, according to Strategy Analytics.

Unlike the US, where GM's OnStar telematics service has more than four million subscribers, European eCall services have been far from successful.

However, Strategy Analytics remains confident that regulations will kick-start the rollout of eCall services in Europe.

“European eCall activity has been confined to premium brand vehicles in selected national markets, but the eSafety initiative will radically change that,” says Clare Hughes of Strategy Analytics, author of a recent report – Automotive Telematics Services: Business as usual until 2010.

Hughes commented that the delay is due to problems in upgrading the communications infrastructure, and a lack of commitment from some European countries, including the UK and Germany.

However, progress is being made in these areas, and Hughes believe EC directives will start to emerge from 2008.

Strategy Analytics service director Joanne Blight pointed out that the US is currently the key market for telematics services, with limited activity in Japan and Europe. However, significant European market growth is expected within five years, pushing the telematics service market forecast to almost $5 billion by 2012.

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