“From sending out an automatic distress call after a car crash, to enabling remote diagnosis of engine troubles, telematics can provide enormous benefits to motorists and car makers around the world,” said Anna Buettner, analyst with iSuppli’s automotive research service. “For drivers, telematics can enhance safety, convenience and connectivity. For car OEMs, telematics can add to and improve car functionality and reduce warranty and after-sales costs. That’s why carmakers and consumers are expected to increase their adoption of telematics systems rapidly during the next seven years.”

By 2016, 68.4 million cars will ship with telematics systems installed by OEMs, up from 14.3 million in 2008. This means that 84.6 percent of all cars shipped in 2016 will incorporate telematics systems.

Aftermarket shipments of telematics systems will rise to just under 16 million units in 2016, up from slightly less than 5 million in 2008.