July 2, 2009

Traffic Subscriptions could Jump 10X by 2014

Interesting news bit out that is reporting iSupply data indicates that there is a boom ahead of us in real time traffic reporting subscriptions. Yes, I know you knew that, but now the rest of the world does too. The expectations are that the subscriber base could grow by 10X versus today to 51 million in 2014, up from about 4.6 million today. Revenue could jump to $1.3Bil from a little over $100 million today.

It's no surprise that people are interested in this, but what is driving it is the very real change that we are seeing in the delivery of traffic solutions and how data is being utilized, refined and sent out to the ever increasing legion of navigation solutions. things have changed and a next generation solution is taking shape. I wrote about some of the barriers that would be falling back in January 2007, to create a bigger, better traffic reporting solution, and for the most part, we are now seeing all of that coming to fruition.

1) High quality databases using historical traffic data are in use - just consider the TomTom IQ Routes next time you buy a TomTom, or use any resource that uses the Inrix data systems.

2) Increase in coverage and flow capabilities - the increase is there, but not to the point that we all have access to flow data on secondary roads which is what I really want. It is present in some higher end traffic databases though.

3) Bandwidth - TomTom LIVE (Go 740 in US) has cellular connections as does TeleNav Shotgun for high bandwidth two-way data transfer; result is more detailed and more accurate assessment of the traffic issues ahead. Furthermore, you are starting to see high quality mobile phone applications roll into the market with traffic feeds; plenty of bandwidth to grab not only data but over the air delivery of maps on some of them.

I think that the building blocks are there for this reported leap in the subscriber base, but I would like to see better application of the traffic database to the end product on secondary roads across more devices, as well as the higher end units roll down their capabilities for Go 740/Shotgun caliber traffic to the mass market units to enable the subscription market to take off.

ReadMore at TWICE

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Posted by Scott Martin at July 2, 2009 6:20 AM

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