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October 2005 -- 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.