Probe car data collection could transform the value of real-time data for car users, according to analysts iSuppli. The technique involves utilising an existing navigation device within a car to send back information about the traffic conditions it is experiencing.
The probe-car system uses a number of vehicles as moving sensors to detect actual traffic situation. The technique was pioneered in Japan, but is deployed in the US and Europe. The data is uploaded to servers from navigation cars which have two-way connectivity.
The data delivered by probe car collection principally concerns traffic conditions i.e. jams, accidents, projected delays and alternative routes.
The distribution of traffic data on devices with two-way wireless (i.e., cellular) represents a relatively small segment of the market, with 3 million subscribers estimated for 2008. Owing to the rapid growth of off-board navigation and on-board navigation for smart phones and mobile phones, two-way traffic is expected to grow strongly and will reach nearly 128 million users in 2014, representing a CAGR of more than 86 percent from 2008.
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"The biggest opportunity for navigation-related content-including real-time traffic-is through two-way distribution to navigation systems and smart phones," says Phil Magney, vice president, automotive research for iSuppli, "to compete with free or low-cost broadcast traffic information, two-way solutions offer more capability, such as the ability to offer multiple routing options based on favorite routes or common destinations. Estimated time of arrival is often presented based on historical traffic patterns, road construction, or incidents. In the near future, customers will increasingly expect their device to tell them more than how to get from point A to point B."
Broadcast via FM or other wireless signals, the traditional method of delivering such services, accounts for more than 83 percent of the total market for delivery of traffic information.
Broadcast traffic subscribers are forecasted to increase to nearly 57 million in 2014, up from 15.5 million in 2008, rising at a Compound Annual Growth Rate (CAGR) of 24 percent. Japan in 2008 accounted for the largest share of the broadcast traffic segment-about 8.8 million-representing slightly more than half the global users. Western Europe accounted for 3.7 million of the broadcast subscribers, or 23 percent.
Global revenue from service subscriptions for real time traffic information will rise 18 times during the period from 2008 to 2014, according to iSuppli Corp.
Worldwide revenue generated by real-time traffic services delivered to telematics and navigation devices will reach $4.7bn in 2014, up from $268m in 2008.
The number of global subscribers for these services will rise tenfold during the same period, reaching 184.9m in 2014, up from 18.5m in 2008.
"Real-time traffic information has the potential to be a key differentiator and major opportunity for device makers and service providers to distinguish themselves from their competitors", says Magney, "however, within a few years, such traffic information will become so common that it will be an essential feature on navigation and telematics solutions."