Automotive Manufacturers Reach for Multiple Wireless Applications -Ignoring Instant Bluetooth OpportunityBoston, MA - July 13, 2005 - The new Strategy Analytics "Wireless Technology Trends and Implications for the Automotive Market" study indicates strong reluctance by too many automotive players to meet the large and ever growing opportunity for in-vehicle hands free cell phone use. Simultaneously, these players are overly focused on post-2009 potential automotive wireless applications. The Bluetooth competitor gap is set to keep on widening unless other players start following the market lead set by Daimler Chrysler, BMW, Ford and PSA, in addition to automotive Bluetooth suppliers, Parrot, Nokia and Motorola.
The dynamic automotive Bluetooth market is set to almost triple in 2005, and double again in 2006. Very clear market leadership is being established early. Although over 20 OEM brands offer Bluetooth, for the majority of OEMs this tends to be only on selected models. Viable opportunities for DSRC, Wi-Fi, UWB and ZigBee, will not start to emerge until at least 2008-2009; and each technology will require costly evaluations into standards, technical issues and business case development.
"OEMs now need to quickly react to consumer demand and start rolling out Bluetooth across model ranges and geographic regions. Although Bluetooth will be unchallenged as the wireless technology to deliver in-vehicle hands free voice communications, automotive companies are in danger of examining market opportunities driven by technology instead of consumer interest," says Joanne Blight, Director, Automotive Multimedia & Communications Practice.
"There is too much automotive focus on longterm wireless technologies that have yet to emerge into the market and currently have no clear commercially viable applications. Bluetooth does face strong competition in the in-vehicle audio entertainment market, and yet there is far too little focus on the role of Bluetooth in relation to iPod, compressed audio format CD players, satellite radio and other, USB-enabled portable devices.
Wireless Technology | Full Entry into Automotive market |
Bluetooth | Fully available but opportunities not being fully addressed. Requires faster roll-out across vehicle models and geographic regions. |
DSRC | 43 Electronic Toll Collection (ETC) Schemes at the end of 2004. Range of Intelligent Transportation and Safety Initiatives, with Government WLAN directives expected from 2008/9. |
Wi-Fi | Niche in-vehicle infotainment product until at least 2009. Range of Intelligent Transportation and Safety Initiatives, with Government WLAN directives expected from 2008/9. |
UWB | Major standardization challenges need to be resolved before adoption in the automotive market. Radar will be the early application. |
WiMAX | No adoption in automotive and transport markets until 2010 at the earliest. |
ZigBee | Commercial vehicle sector offers niche opportunities from 2008/9. |