International marketing consultancy Frost & Sullivan said: 'Fleet operators will be able to reap benefits from the minimisation of vehicle breakdowns and heightened efficiency of maintenance activities.
'It will present manufacturers with the opportunity to step into the middle of their distribution and after-sales value chain, thus developing closer relationships with their customer base. Automotive manufacturers' relation of control over their aftersales service is of strategic importance in view of the implementation of the new competition laws in Europe.'
The firm claimed that every manufacturer had the technology for a short-term introduction of the technology.
It said manufacturers could start introducing the systems from next year in executive models, with the upper medium sector being fitted with the systems between 2004 and 2005.
The report said: 'Remote diagnostics is not likely to be introduced on its own, but is likely to be bundled in a package along with other telematics services.
'As a result, manufacturers are expected to use the telematics unit installed in the vehicle to perform the necessary checks and communication for the remote diagnostics services as well.'