REVENUES in the telematics industry is set to boom as cars become smarter and the speed of telecommunication networks improve, industry officials told a forum in Shanghai.
Parts of telematics technologies, which refers to electronic control, communications and navigation systems in vehicles, will also be used in high-speed railway networks in China, experts said.
The market revenue of Shanghai's telematics industry, one of the city's chosen "strategic industries," reached 220 billion yuan (US$34.37 billion) over the first three quarters of this year, a 20 percent increase year on year, according to Shao Zhiqing, deputy director of the Shanghai Municipal Commission of Economy and Information Technology.
"Shanghai will play a leading role in developing the telematics industry nationwide. The city has a high science research level and strong automotive industry, creating a favorable environment for the development of telematics," Shao said during the Telematics China 2011 forum.
The number of telematics users in China is expected to reach 10 million in the next five years, according to Chen Demei, vice president of the Shanghai Automotive Industry Corporation, who didn't provide comparative figures.
Based on the technology, drivers can send, receive and store information via telecommunication devices in addition to controlling on remote objects. Telematics include, but is not limited to, the integration of Global Positioning Systems with computers and mobile communications technology.
Telematics technology will also be adopted in high-speed railways, such as control and security systems, according to Fu Yuwu, general secretary of society of Automotive Engineers in China.
Both carmakers and telecommunications carriers are expanding in these promising sectors.
Yesterday, China Unicom and BMW signed a deal to kick off mobile network-based services, such as in-vehicle communications, navigation and security services.
China Unicom's telematics services have nationwide coverage and provide 3G connectibility, which favors drivers in China, the carrier said.