• by Tanya Gazdik , Staff Writer, July 5, 2016

It used to be the only thing consumers had to decide on when purchasing a vehicle was upholstery or leather and whether they wanted to pay extra for a sunroof or a better sound system. 

Now, they are faced with myriad choices, including whether they want to spring for safety technology like lane departure warning and automatic braking if they get too close to the vehicle in front of them. Do you want a built-in navigation system? How much connectivity do consumers want or need and when does it become a distraction instead of a safety feature? 

Increasingly, manufacturers are offering some of these features as standard equipment. It’s rare to find a vehicle without at least one USB plug and without a system that syncs to your smartphone to allow you to use your sound system for hands-free calling and texting. Some systems will even read your incoming text messages to you or allow you to dictate outbound text messages. 

Global revenue from automotive telematics systems will grow at a compound annual growth rate of more than 19% to $4.2 billion by the end of 2021, according to new forecasts from IHS Automotive. These forecasts are driven by continued innovation in vehicle connectivity and safety technologies, and project nearly $2.8 billion in additional annual revenue by the end of the forecast period in 2021, compared to 2015.

The IHSAutomotive Telematics Forecasts predicts that consumer electronics-based solutions will make up nearly 30% of the market, leaving only about 15% of embedded systems in 2021, the IHS Automotive forecasts say. Additionally, hybrid telematics will boast the strongest revenue at more than 12% from 2015 – to 55% of the overall market.

More cars of the future will feature multiple connections for a variety of applications and services. 

Even though telematics has existed in the automotive industry for almost 20 years, growth is still expected for the next decade, whether due to mandates or the desire from consumers to be connected even while driving. Telematics systems based on wireless communications have become a vital link between customers and manufacturers, according to IHS.

Telematics systems are a major factor in changing the automobile from a collection of analog control systems to a fully networked and connected digital car, where software-defined functionality can be remotely changed, corrected and updated. Telematics systems also add connectivity-based applications that make the average car safer and more fuel efficient, as well as help to correct common driver errors.

Penton’s WardsAuto recently announced a new conference to drive engagement around the hot issue of building tomorrow's automotive "user experience." The WardsAuto UX Conference will include automaker keynote speakers, panel discussions on UX-focused topics, exhibits from leading technology suppliers and the first annual Wards 10 Best User Experience awards ceremony.

"All major automakers now have entire design teams with user experience titles and design studios dedicated to UX," says Drew Winter, director of content at WardsAuto. "They get it. OEMs and suppliers know consumer electronics and changing attitudes regarding mobility are transforming what customers expect to see in the next cars and trucks they buy.”