Telematics is the convergence of computing, information, and wireless communication technologies with GPS location-tracking capabilities inside a moving platform, which in turn enables various location-based and multimedia communication services. Practical examples of telematics include such applications as vehicle location-tracking, dynamic GPS navigation, real-time traffic reports, automated crash and theft notifications, and remote diagnostics.

How big is the telematics marketplace and what is the growth potential for companies in this space?

• Global GPS/Telematics sales are on-track to exceed $16 billion by the year ending 2006.
• Real time track and trace applications are growing exponentially as companies move to improve customer service standards.
• The consumer automobile GPS/Telematics sector is experiencing exponential growth.
• Demand for personal GPS/Telematics systems (biking, walking, hiking, etc) has grown exponentially and is expected to continue to increase.
• Studies show an increase in internal efficiencies and customer service in sectors where companies have adopted GPS/Telematics systems, a largely untapped market.
• The insurance and security industries have increasingly embraced the idea of embedded GPS/Telematics systems to fight theft, damage, and fraudulent claims.
• Growth rate for the market is expected to be near 25 percent through 2007 and increase beginning in 2008 as the next wave of GPS/Telematics technology is made available via new satellite launches.
• Military and marine applications continue to be a strong sector even as land-based applications approach 60 percent of the market demand.
• More than 25 million commercial vehicles and 5 million truck trailers are on the roads in North America. This is a clear indication of the tremendous market potential for commercial vehicle GPS/Telematics systems.
• Tangible benefits, such as increased productivity, reduced costs, and enhanced safety and security – which ultimately lead to greater customer satisfaction – are likely to make it difficult for fleet operators to ignore Telematics.
• Virtually all commercial vehicles are expected to be equipped with GPS/Telematics systems in the near future.
• Nearly 32 percent of trucks and about 25 percent of truck trailers are anticipated to be equipped with Telematics systems by the end of 2012.
• The revenue from both hardware and services in the long-haul, local fleet, and trailer-use segments alone is likely to breach the $6.5 billion mark in 2012.
• Only 9 percent of the overall market is utilizing the benefits of this cutting edge technology, leaving more than 90 percent potential market penetration.
• This data affirms that the commercial and consumer GPS/Telematics industries are in their early stages of growth – similar to that of the wireless phone industry in the early 1990’s.

By establishing its roots in an industry with such room for growth and strengthening relationships with companies that will promote this growth, NXGen Inc. is positioning itself to be a part of the projected explosion of the GPS/telematics marketplace for years to come.