The convergence of computers, telecommunications, data analytics and automobiles is responsible for a telematics industry that is growing from 10.2 percent in 2012 to 49 percent by 2017. The study from ABI Research (News - Alert) highlights recent government regulations around the world, mandating the implementation of this technology in new vehicles as the biggest reason for the increase.

“Clearly, progress in government mandates in both Europe (eCall) and Brazil (CONTRAN 245) will be important growth drivers for the uptake in safety and security telematics solutions in the next five years,” said vice president and practice director, Dominique Bonte. “However, strong commercial drivers also exist with safety high on the public image priority list of many car OEMs and features such as advanced remote diagnostics and preventive maintenance becoming instrumental in offering better service and an optimized user experience to car owners.”

Applying telematics to new vehicles is the preferred method of meeting these new regulations, but companies such as Ford are introducing products to the market that address vehicles without this option.

The SYNC system by Ford is a hybrid phone-based system designed to provide the same information as other telematics systems.

Car manufacturers, insurance companies, telematics service providers and wireless carriers are also entering into joint ventures to provide this service. Standalone units installed in cars with this technology can provide UBI (usage based insurance) policies, safety and security services to everyone who wants the service.

The services are provided by wireless and telematics companies for monthly fees.

New vehicles are more connected than ever before, and the telematics system and the infotainment package can be vulnerable to attacks. These attacks can create serious problems if the system in the vehicle is not compartmentalized to limit the damage to only the affected section of the vehicle.

Such security measures have to be put in place at the hardware or software level to ensure life-threatening injuries don’t take place because of a security breach in the system.

The telematics industry depends on many different technologies working together to provide a service that will protect the consumer and provide relevant information for the parties involved in gathering the data. Car OEM’s, service providers, application developers and different industries have to come together and develop an industry standard.

As the technology improves, the services provided by telematics sees a rapid increase in the adoption of this technology. Driver behavior monitoring, pay-as-you-drive insurance, customized infotainment services, smartphone integration, in-car Wi-Fi and other technological integration are just some of the possibilities in the future of telematics.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Austin 2012, happening now in Austin, TX. Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.