Delphi Automotive Systems’ multimedia sales more than tripled in Q1 2001 compared with Q1 2000.
The worldwide demand for Internet connectivity is always increasing. Penetration rates are rising across the world, and through a range of platforms, including the PC, PDA and mobile phone. The next big Internet platform is expected to be the automobile, a natural choice given the high proportion of time that are spent in cars, whilst also unnatural due to the inability to surf or use the Net in traditional ways – a keyboard obviously isn’t a viable solution.
Therefore, the success of in-car Internet access depends on the ability of the driver to use her voice to surf, and hence the development of voice recognition technology. Without this, the experience of the Internet will be severely limited for many drivers. Currently, voice recognition technology is still under development, but should be quite sophisticated in years to come.
Manufacturers and service providers see great potential in in-car Internet access, and several manufacturers have therefore established plans to introduce the Internet into cars en masse over the next few years. This is reflected in Delphi’s mobile multimedia revenue, which grew fourfold between 1999 and 2000 to reach $322 million, and is expected to reach $500 million in the next 18 to 24 months.
For Delphi and other parts manufacturers, the development of in-car telematics should provide a huge boost to revenues in the next few years – even if the idea of an automotive sector enjoying revenue growth and profitability seems too good to be true.
