Article at a glance:

A road map for telematics

Will telematics become yet another promising idea that fails to deliver on its potential? A close look at the current state of play in the automobile industry indicates that the technology—a suite of communications applications inside cars—will likely fall well short of initial expectations that the US market alone would reach $40 billion annually by 2010.

The take-away

Revenues from telematics won't meet expectations, but carmakers should remain engaged. Instead of pursuing a full suite of applications, they should invest selectively in the brightest ones.