Telematics Taiwan Forum Points the Way for Development of the Telematics Industry

International event aimed to help the island become a vital part of the international supply chain

Telematics has emerged as one of the top choices in the search for a new means to boost Taiwan's momentum for economic development and integrate the island's industries.

To gather power for the island's telematics industry and develop links with the rest of the world, the Institute for Information Industry (III) and Taiwan Telematics Industry Alliance (TTIA) jointly held an international industry forum, the Telematics Taiwan 2012, in early November in Taipei. The forum was designed to trigger more application technologies and services, as well as business models and opportunities, through interaction between international heavyweight speakers and local business people.

The forum focused on three major themes: trends in innovation, open standards, and cloud architecture, with experts and entrepreneurs from Taiwan, Europe, and Japan being invited to share their experience and expertise. This, the organizers hope, will help point the way for a more vigorous development of the local telematics industry, which aims to tap into the global intelligent-vehicle supply chain.

Focal Industry

In his welcoming speech at the form, former Vice President Vincent Siew noted that Taiwan's strength in the telematics industry lies in its ability to integrate the resources of different sectors, and that the development of the industry requires cooperation across the information and communications technology (ICT), automobile, and information software sectors. Taiwan has a good foundation in all these sectors.

Experience tells him, Siew explained, that it is not proper for Taiwan to concentrate on single product categories at the present time, because there is always price-cutting competition from rivals. The telematics line, however, requires the integration of different industries and can achieve much higher added value.

Given the industrial strength in ICT that Taiwan has built up over the years, Siew said, the development of Taiwan into a vital part of the telematics supply chain is an achievable task. To do that, Taiwan needs to enhance its international cooperation and create a platform to gather worldwide experts for the sharing of expertise and the exchange of experience.

III chairman J.F. Chang, quoting statistics from the Market Intelligence & Consulting Institute (MIC), a unit of the III, pointed out that the global telematics market is projected to reach US$211.5 billion in 2015, with a compound annual growth rate (CAGR) of 26.7%. The telematics application service market is forecast to hit US$31.6 billion that year.

Chang added that in conjunction with the vigorous development of the ICT industry in Taiwan, telematics has become a "star industry" with the potential of generating over NT$1 trillion (US$33.3 billion) in revenue annually. The traditional ICT industry is facing a major turning point, he said, and in the coming 10 years III aims to help create another "golden decade" for the industry.

The III wants to create human-oriented intelligent life for Taiwan through telematics, intelligent internet connection, information security, cloud computing, and technology services.

W. H. Fu, deputy director general of the Department of Industrial Technology (DoIT), a unit of the Ministry of Economic Affairs (MOEA), told the forum participants that as part of the "Vision for Golden Decade" plan announced by the Executive Yuan (Cabinet), his department has been working aggressively in line with the government's policy of invigorating the domestic economy through innovating, opening, and adjusting structures. The final goals include giving local enterprises a boost in innovation, internationalization, and diversification of the industry structure.

According to Fu, the establishment of telematics, cloud application, and open on-board unit (OBU) standards is a major target for the government in 2012. "Telematics has penetrated into our daily lives and become a key issue," Fu said. "In conjunction with more and more advanced technologies and new applications entering into related fields, as well as different governments striving aggressively to promote Intelligent transportation systems (ITS), telematics will play a vital role in further boosting global industrial development."

MIC predicts that the production value of Taiwan's telematics industry will reach US$22.6 billion in 2012, up 24.5% from 2011. Of the industry's major categories, passenger-related telematics equipment and products are expected to enjoy a CAGR of 32% between 2010 and 2015; for vehicle-related equipment and products, the forecast CAGR is 30.1%.

Juhani Jaaskelainen, Head of Unit, Information Society and Media-Directorate General, European Commission (and also a major figure in the EU's intelligent car and eSafety projects), shared his experience and knowledge with the audience of more than 300 in a speech entitled "Telematics--Global Trends and European Strategy." He pointed out that all EU countries are scheduled to require all automakers to add the eCall system (costing about 100 euros each) on all new vehicles from 2015.

Marcel Visser, Chairman of ERTICO-ITS Europe, Automotive Suppliers Sector Platform, addressed the forum on the topic of "112 EU eCall-the Perfrect Wave." ERTICO – ITS Europe is a network of intelligent transport systems and services stakeholders in Europe, connecting public authorities, industry players, infrastructure operators, users, national ITS associations, and other organizations.

Taiwan's telematics industry has been enjoying rapid growth in recent years, thanks partly to aggressive promotion by DoIT. In addition, the Telematics Promotion Office (TPO) has been working with TTIA to encourage local companies to participate in telematics projects in Europe. These organizations hope to integrate all available local government, industry, and academic resources, along with the advantages of local enterprises, to boost the island onto the global stage. III has also been working to develop new technologies and applications, and to help local companies export their products.

Technical Standards

One of the forum's objectives was to impress on its audience the importance of common technical standards. During a telematics standards session, local and foreign speakers gave their views on related topics. Jeff Chen, chief technology officer of Advantech Co., addressed the topic of "The Public Transportation Solution Standard in Taiwan"; Miroaki Shishikura, senior manager of ITS Japan, talked about "ITS/Telematics Development Overview in Japan." David Francis, joint chair of TISA's Technical and Standard Committee, also shared his insights.

In a session on telematics and the cloud, Masao Fukushima, general manager of the Global Government Affairs Department--Environment Safety Technologies, Nissan Motor Co., told the audience about the importance and impact of setting up open standards for the telematics industry in a speech on "Telematics & Cloud for Vehicles in Japan". Fukushima's speech echoed what Precksha Saksena-Sood, managing director of Telematics Update, said in a speech on "Cloud Computing and the Auto Industry in Europe."

Pascal Viaud, Taiwan Expert, Global Navigation Satellite Systems (GNSS) Asia, talked about the "Opportunity for Industrial Collaboration between Europe and Taiwan," giving the audience valuable ideas about global business opportunities in the telematics sector.

MOEA officials pointed out that the international forum brought a variety of inspirations and viewpoints to Taiwan's telematics industry, and that this will further strengthen the determination of local players to jump onto the global telematics stage.