Win-Win Partnerships Key to Enhanced Traffic Data for Navigation Systems

(Business News & Technology News, 29 Feb 2008)

As end-users become more familiar with the benefits of traffic information during navigation, all major players in the traffic data ecosystem are intensifying their efforts to create, aggregate and distribute high quality real-time, historical and predictive traffic information.

"During recent months ABI Research has observed a multiplication of the number of traffic-related partnerships," says principal analyst Dominique Bonte. "All key participants in the traffic data value chain are anxious to consolidate or strengthen their strategic positions by working together in win-win reciprocal arrangements."

Much of the current focus is on the collection of cellular probe data. TomTom recently announced an exclusive partnership with SFR to make their real-time traffic service available in France in 2009. This follows similar agreements with Vodafone in The Netherlands, Germany and the UK.

However, more traditional traffic data collection methods based on road sensors and fleet-based probe data are still important, as evidenced by the I-95 Corridor Coalition Contract awarded to INRIX earlier this year in the US. This represents a milestone in the cooperation between the public sector and private companies to create and distribute traffic information.

Finally, the use of modeling and statistical methods to predict average traffic speeds based on historic data is gathering momentum. An agreement with PTV AG will allow NAVTEQ to offer traffic flow speed data for arterial roads within Germany. Similarly, a partnership with ITIS Holdings Plc enables Journey Dynamics, a provider of traffic intelligence, to incorporate historical floating vehicle data into its traffic model to generate accurate traffic speed forecasting in the UK. At the same time ITIS has the right to use Journey Dynamics' model in its own products.

The reciprocal partnerships described above are typical of the traffic ecosystem and are used to leverage existing skills and data. ABI Research expects that sophisticated real-time and predictive traffic information will be available in large parts of North America and Europe by 2010.

Click here for more information on the research "Traffic Information for Navigation Systems" by ABI Research