The system features IBM's voice recognition technology, Touch by Voice, which enables drivers to ask for directions and hear responses over the existing car audio system using a "talk" button on the steering wheel. The system can recognize 150 English-language commands, in a range of accents, such as, "Find the nearest gas station," or "Find the nearest Italian restaurant."

It provides driving directions to and from any specified address or location, and links to the vehicle's climate control systems.

Innovative Interface

Patty McHugh, director of telematics for IBM's Pervasive Computing division, told Wireless NewsFactor that Honda's system is powered by IBM's embedded ViaVoice technology and software developed jointly by the two companies.

"It is a new way for drivers to access navigation systems, and represents advances in user-interface technologies," McHugh said. Honda has included voice, touch and visual interfaces in an adaptive way, to help the driver interact with its system.

The Touch by Voice system debuts on the 2003 Accord with such new features as a larger touch screen display and an expanded database that covers virtually all U.S. roads, as well as seven million points of interest.

The Accord's satellite-linked navigation system uses GPS (global positioning system) technology in combination with information from a DVD-based mapping system to pinpoint the vehicle's location and to provide mapping and route-guidance features.

Voice Recognition: Critical App

Voice recognition applications are considered a critical component of the new telematics systems that are being rolled out by most major car manufacturers.

Gartner analyst Thilo Koslowski recently reported that there is significant concern about driver distraction associated with in-vehicle electronics and communications applications among consumers, the government and auto manufacturers.

"Especially with all of the more complex applications being offered, people feel that interacting with telematics services requires the drivers to push too many buttons and take their eyes off of the road," Koslowski told Wireless NewsFactor.

He suggested that telematics providers should develop voice-based user interfaces to reduce concerns about driver distraction. "They need to work more closely with companies like Speechworks, Nuance and IBM to develop more intelligent speech engines to deliver these applications," he said.

IBM's ViaVoice delivers speech technology to such mobile devices as smartphones and PDAs, as well as telematics systems.

McHugh said IBM currently is working with technology provider Johnson Controls and Daimler-Chrysler on an integragted voice-recognition application for Bluetooth-enabled mobile phones that will be featured in future Chrysler minivans.

$30B Industry

Analysts have been bullish on the automotive telematics market, with some projecting it to reach about US$30 billion to $40 billion within five years.

Phil Magney, principal analyst with the Telematics Research Group, recently told Wireless NewsFactor that by 2008, there will be 12.4 million telematics-enabled vehicles sold worldwide, representing 20 percent of all vehicle sales. In the U.S., within the next six years, some 42 percent of all vehicles sold will have the systems, he said.

The leader, by far, is General Motors, whose OnStar system has been included in about one million vehicles.

Another major player in the telematics industry recently dropped out of the competition when wireless technology giant Qualcomm and Ford Motor Company announced the dissolution of Wingcast, a joint venture they formed two years ago. Both companies said they will continue to pursue efforts in the telematics field, however.