Penetration of factory-installed safety and security telematics shipping globally in new cars will reach 15.7 percent in 2013 according to ABI Research.

Traditional safety and security telematics is expected to make a comeback in 2013 due to growing awareness about its importance from consumers and governments alike,”Mandates for stolen vehicle tracking in Brazil (CONTRAN) and emergency calling in Russia (ERA GLONASS) are finally becoming a reality in 2013. And the EU’s eCall is being prepared for launch in 2015,” said Dominique Bonte, vice president and practice director.

However, increasingly the telematics industry is shifting from reactive solutions, to systems that can help avoid and prevent safety and security hazards:

• Driver behavior monitoring improving driving skills, reducing the risk of accidents.
• Insurance telematics/UBI as an incentive for safer driving.
• Prognostics and preventive maintenance avoiding break downs and reducing repair costs.

OEMs and dealerships are increasingly looking at telematics as a customer relationship tool to enhance the car experience, piece of mind of car ownership, and ultimately build a more loyal customer base.

In this respect remote diagnostics and in the future remote updates are the core features around which the automotive industry is going to transform into a service industry.