Automotive Telematics and ITS

Japanese automotive manufacturers are featuring more telematics systems in their vehicles to keep them globally competitive. Wireless voice and data communications and GPS (Global Positioning System) location capabilities provide drivers with location-specific information, security and functionality-enhancing services that increase driver convenience, safety and efficiency of the transportation system. The expansion of telematics systems increases the amount of computers and mobile communication technology used in vehicles and along roads, creating a growth of opportunities for a large number of fields (See Figure 1 below).

Market

The Mitsubishi Research Institute estimated the Japanese telematics market to be 460 billion yen in 2001 and projects a growth to 945 billion yen in 2010. Because Japan is much smaller geographically than the United States, vehicle density is much higher here at 500 vehicles per square mile compared to 58 in the United States. Greater vehicle density has intensified traffic congestion and potential for collisions. Such conditions increase the opportunities for telematics related businesses to help make driving more convenient and safer.

Telematics origins, governmental support, ITS

The automotive telematics industry in Japan arose from a governmental initiative begun in 1996 to build Intelligent Transport Systems (ITS). ITS aims to improve driving comfort, efficiency, safety and security, and reduce environmental costs resulting from traffic congestion through vehicle improvements using electronics and communication technologies networked with the road infrastructure. The main areas of ITS and areas of opportunity for telematics companies are shown in Figure 2 below.

Under this initiative, the government supported the Vehicle Information and Communication Systems (VICS), which provide drivers with an inexpensive real-time traffic information service, and the Electronic Toll Collection (ETC) system, which permits non-stop collection of road tolls. The government made VICS services available countrywide by installing radio beacons, optical beacons and FM-multiplex broadcasts all over the country by 2003, in less than half the estimated time to complete nationwide coverage. Today, VICS and ETC have progressed out of the growth stage into the mass market.

In addition to improving driving convenience and reducing traffic congestion, ITS also aims to improve vehicle-road safety. By developing Advanced Safety Vehicles (ASV), automakers are shifting their focus from passive safety to active safety, helping drivers avoid many of the errors leading to collisions. While passive safety features, such as airbags, are now standard in most vehicles, many active safety features incorporating more telematics devices are becoming cost-effective.

ASVs are equipped with intelligent assistance functions to aid driver awareness and to help reduce driver error, such as delayed reactions and errors in judgment and response, which account for 75% of all traffic accidents. Intelligent assistance functions delivered through ITS and telematics systems include danger notifications, tire-pressure alerts, and lane-departure warnings.