Penetration of consumer and commercial telematics systems in passenger cars and commercial vehicles respectively will evolve from less than 10% in 2010 to 23% in 2015, according to a new report by market monitoring firm ABI Research.

“Decreasing hardware and connectivity costs as well as increasing awareness about the benefits of connectivity among both consumers and enterprises guarantee healthy growth in the coming years”, said Dominique Bonte, ABI Research Telematics & Navigation Practice Director. “Other drivers include regulation or legislation for services such as automatic emergency calling and stolen vehicle tracking.”

ABI Research also believes that an important enabler of telematics systems is the explosive growth of converged technology, such as the integration of smartphones and portable devices. “Hybrid solutions will become very important as demonstrated by Ford recently having welcomed its two-millionth SYNC customer in the US. In the commercial segment companies such as Telenav, TomTom, and Garmin have successfully developed converged, portable fleet solutions.” explained ABI Research.

While North America is the clear market leader for both consumer and commercial telematics systems, developing regions such as Latin America and Asia-Pacific are set for solid growth, boosted by booming automotive markets.