Consumer telematics Research

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IndustryARC

GLOBAL CONSUMER TELEMATICS SYSTEMS

MARKET (2013-2018)

By Technology (Integrated, Embedded & Tethered); Services (GPS, Navigation

Systems, Car Diagnostics, Fleet Management & Others), Industry, Components &

Geography

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TABLE OF CONTENTS

1. Global Consumer Telematics - Market Overview

2. Executive Summary

3. Global Consumer Telematics - Market Landscape

3.1. Market Share Analysis

3.2. Comparative Analysis

3.2.1. Product Benchmarking

3.2.2.

End user profiling

3.2.3. Top 5 Financials Analysis

4. Global Consumer Telematics - Market Forces

4.1. Market Drivers

4.2. Market Constraints

4.3. Market Challenges

4.4.Attractiveness of the Industry

4.4.1. Power of Suppliers

4.4.2. Power of Customers

4.4.3. Threat of New entrants

4.4.4. Threat of Substitution

4.4.5.

Degree of Competition

5. Global Consumer Telematics Market Strategic Analysis

5.1.Value Chain Analysis

5.2. Opportunities Analysis

5.3. Product/Market Life Cycle Analysis

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6. Global Consumer Telematics Market-By Classification

6.1. By Industry

6.1.1. Automotive

6.1.2. Information Technology

6.1.3. Telecom

6.1.4. Insurance

6.1.5. Logistics

6.1.6. Customer service providers

6.2.

By Services Offered

6.2.1. GPS Tracking

6.2.2. Navigation Systems(Intelligent Transport System)

6.2.3. Car Diagnostics System

6.2.4. Fleet Management Services

6.2.5. User based Insurance service(UBI)

6.2.6. Emergency Notification Service

6.2.7. Local Search and Concierge Services

6.2.8. Infotainment Systems

6.3. By Components

6.3.1. Control Unit

6.3.2.

On-board RAM

6.3.3. Network Operations System

6.3.4. CAN-bus (Controller Area Network)

6.3.5. Wireless communication infrastructure

6.3.5.1. Bluetooth device

6.3.5.2.

Wi-fi device

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6.3.6. GPS antenna

6.3.7. GNSS receiver

6.3.8.

Visual & Audio interface

6.3.9. Sensors

6.3.10. Mobile Router

6.4. By Markets

6.4.1. Passenger Vehicle Telematics

6.4.2. Commercial Vehicle Telematics

6.5. By Technology

6.5.1. Integrated Telematics

6.5.2. Embedded Telematics

6.5.3. Tethered Telematics

7. Global Consumer Telematics Market -Geographic Analysis

7.1.

Introduction

7.2. North & South America

7.3. Europe

7.4.APAC

7.5. ROW

8.

Market Entropy

8.1. New Product Launches

8.2. M&As, Collaborations, JVs and Partnerships

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9. Company Profiles (Overview, Financials, SWOT Analysis Top 5 Companies,

Developments, Product Portfolios)

9.1. Omnitracs Ltd.

9.2.

BMW AG (Assist)

9.3. Ford Motor Co. (SYNC)

9.4. General Motors (OnStar)

9.5.Agero Connected Services Inc.

9.6. Harman Infotainment

9.7.Toyota Motors(Entune)

9.8. Bosch Automotive Technologies

9.9.Alpine Electronics Inc.

9.10.Continental Automotive

9.11.Airbiquity Inc.

9.12.Trimble Navigation Ltd

9.13.

Fleetmatics GPS

9.14.Novatel Wireless

9.15.Telogis Inc

9.16.Auto Page Inc.

9.17.MiX Telematics

9.18.

NavMan

9.19.TomTom NV

9.20.Verizon Telematics

10. Appendix

10.1.Abbreviations

10.2.Sources

10.3.Research Methodology

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10.4.Bibliography

10.5.Compilation of Expert Insights

10.6.Disclaimer

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REPORT SCOPE & STAKEHOLDERS

SCOPE

To provide a complete analysis of theGlobal Consumer Telematics market,it has been divided into

sub-categories depending on the various industries involved in the telematics market, the services

which are offered by consumer telematics, the different components that go into the making of a

telematics system, the passenger-vehicle and the commercial-vehicle segments of the market, and

also the type of technology used in the telematics system. This report tries to analyze the current

market trends in place as well as the future scope for development in this growing market and the

challenges that need to be addressed.

The global market for consumer telematics is definitely on the rise, so we have made an analysis onthe current market players and their presence in the market. The demand for telematics in the

automotive section has shown a steady increase all over the globe, especially in fast growing markets

like China, Brazil, Russia etc.., A geographical analysis has been done to put things into perspective

about the global market. The prominent players in the market currently are Omnitarcs, Trimble

Navigation Ltd., FleetMatics GPS, Telogis Inc etc.

STAKEHOLDERS

Automotive OEMS, Telematic Service providers(TSPs), Component suppliers, Data Serviceproviders, Customer Service providers, Network Operation Sysytem providers, Insurance

companies are the significant stakeholders in this market.

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REPORT DESCRIPTION

The word telematics broadly refers to a system through which a mechanical or electronic

device communicates(collects,sends,or stores information) with other devices or with human

users over a network. Over the years, the term has been specifically used to refer to on-board

communication capabilities in automotive segment.Telematics therefore is now defined as the

wireless connectivity established between vehicles and other systems like machine to machine,

machine to human or direct to cloud.

The basic business model for automotive segment is changing with the advent of mobile data

connectivity. Smartphones have shown us the advantages of having a mobile data connection,

and now the automobile industry is gradually awakening to the fact that providing the customerwith internet connectivity-on the go, along with other safety and concierge services could well

prove to be the key to survive in the market in the future.

Consumer telematics are end-user-targeted, vehicle-centric information and communication

technologies (vehicle ICTs) and services. While safety and security are the cornerstones of

consumer telematics offerings, the current global economic scenario may indicate a shift of focus

onto technologies which provide the end-user with a system which ensures ease of driving along

with ubiquitous net connectivity without compromising on safety and security. With the fuel

prices on the rise, applications that contribute to cost savings, by increasing engine efficiency will

become a necessity in the future. Focus has also shifted to infotainment-not only in high end

cars but also in mass production, which experts belive is going to be a big market in the coming

days.

Network-enabled cars for consumers provide in-vehicle services, such as emergency assistance,

Global Positioning System (GPS) navigation, traffic information, local search (for example, for

charging stations or restaurants) and concierge services. With the consumer telematics market

growing at a rapid pace, we could very well envision a future in which almost all the vehicles

produced, being fitted with telematics system.

As the services offered by telematics systems are quite wide-ranging, this market requires the

participation of a number of industries such as Automotive OEMs, which have to come up with

economically-viable yet, high quality telematics systems. These systems again are made of anumber of components such as routers, in-built RAMs, control units, CAN boards. antennas etc,

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so electronics manufactureing industries have a major role to play in this segment. Finally the

onus to carry out these services falls on the tele-communications industry who are the key to

supply mobile data-connections, satellite connections, and also the customer service industry to

provide hassle-free 24x7 service to the end-users.

Sample Table 1: Global Consumer Telematics Market Projected Revenue($ Billion), By

End User Industry (2013-2018)

Industry 2013 2015 2017 2018 CAGR (%)

2013-

2018

Fleet Management Telematics xx xx xx xx 20.18

GPS Navigation and

ITS(Intelligent Transport System)

xx xx xx xx xx

Auto Insurance Telematics

UBI(User Based Insurance)

xx xx xx xx xx

Auto Infotainment 13.8 xx xx xx xx

Customer Services xx xx xx xx xx

Data Services 0.9 xx xx xx xx

Hardware (including CUs) 1.2 xx xx xx xx

GLOBAL TELEMATICS MARKET 41.0 xx xx 110.0 21.8

Source: IndustryARC Analysis

The above table represents the projected forecasts forGlobal Consumer Telematics and Services

market on the basis of end-user services for the year 2015, 2017 and 2018 by keeping 2013 as a

base year for compounding CAGR.

Coming to the current market scenario for consumer telematics, it is estimated to be around the

$ 41 Billion mark in 2013. Based on the growth rate seen in various related industries and the

market share of the major players in this sector, we could forecast the market numbers for the

year 2018.

The CAGR is estimated to be about 21.8%, for the time period of 2013-2018. Currently the

market penetration is seen at 11%, i.e., of all the vehicle units produced globally about 11% have

some kind of telematics system(embedded, integrated or tethered) installed in them. Going by

the market trends this figure is likelyto go upto 46%, in the market by 2018.

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If we take a look at the breakdown of the revenues generated in 2013 in the telematics market, it

is clear that GPS navigation, fleet management and the infotainment sector makeup a major

chunk of the revenues. All these three sectors are forecasted to see a healthy growth rate for the

next five years.

As the safety of the passenger is the most important factor, governments in some countries have

been considering the idea of implementing compulsory safety measures in passenger vehicles

such as emergency assistance in case of accidents which include the vehicle making an

emergency call to the state helpline, and sending the exact GPS co-ordinates of the place where

the accident has occurred. Emergency crash notification and remote diagnostics are preventative

measures designed for the anticipation, avoidance and fast reconciliation of troublesome

situations. They have low-bandwidth communications requirements and predictable usage

profiles. They do not put the much extra burden on the OEM with regard to the amount or the

cost of bandwidth required, operating invisibly to deliver latent but efficient and on-demand

functionality.

Telematics insurance applications are becoming more popular as they allow drivers to reduce

their premiums. With schemes such as Pay-as-you-Drive(PAYD), Pay-how-you-drive(PAHD)

the passenger has the opportunity to save money by avoiding over-priced premiums. Telematicstechnology allows us to gather accurate information about the customers driving patterns, so we

can calculate the car insurance based on individual driving behaviour. Customers who drive

safely can receive lower renewal premiums.

Fleet management is one more area wherein telematics play a vital role,as telematics can be used

to make the management system more efficeint by maintaining a real-time track of all the vehicle

in the fleet not only with regards to location, but also with speeds, uptime,downtime etc.,. Fleet

Telematics System(FTS) facilitates the exchange of information between a commercial fleet of

vehicles and their central authority i.e., their dispatch office.A FTS typically consists of mobile

Vehicle Systems (VS) and a stationary Fleet Communication System (FCS). The FCS may be a

stand alone application maintained by the motor carrier or an internet service running by the

supplier of the system. The system usually includes a database in which all vehicle positions and

messages are stored. This system provides the central authority with real time location of each

member of their fleet. The status of each vehicle including when it started up and shut down,

idling state, speed etc..,. With high fuel prices in the market, implementation of telematics

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systems seems like a logical step especially in fast growing markets like China. For service

providers looking to expand to markets that have yet to reach maturity, China and other

developing markets(especially in Asia-Pacific) provide an ample scope of opportunities in the

future.

The EV(Electric Vehicle) segment is one more segment which experts believe will drive the

market for consumer telematics. EVs(Electric Vehicles)which have been touted as the next big-

thing in the automobile market, may not quite have reached the expected levels of market

penetration but experts and automobile majors alike are still very optimistic about the future of

this segment. The EVs already have a built-in central controlling unit , which controls all of the

systems in the vehicle including battery load indicator, rpm etc..., and an embedded telematics

system which can provide data-connectivity and also serve as a multi-purpose engine diagnostic

system, and a built-in infotainment system can be added to this. Many still believe that the

concept of e-cars with smart-grid system, is not too far away from us, it is quite clear that

consumer telematics has a huge role to play in the future of EV segment.

Global Consumer Telmatics Market Share-By End User Industry (%), 2013

Source: IndustryARC Analysis

As a healthy growth has been forecasted for the consumer telematics industry, it has generated a

lot of interest in the automotive, tele-communications and information technology segments to

gain a foot-hold in this market and many of the major players in these industries are eitherinvesting into the R&D of their own telematics platform or are collaborating with already

Fleet Management GPS Navigation & ITS Auto Insurance(UBI) Auto Infotainment

Customer Services Data Services Hardware

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existing consumer telematics suppliers to to produce embedded telematics systems in their

vehicles.

The report also talks about the developments taking place in the market such as the formation of

the GENIVI Infotainment platform formed by some of the major industries such as BMW

,GM, Delphi, Intel to provide an open source platform to align requirements, deliver reference

implementations, offer certification programs.

Currently some of the major players in this field include automotive bigwigs like BMW, Ford,

General Motors, Toyota, Mercedes-Benz, Mitsubishi Motors and also tech giants such as Delphi,

Robert-Bosch, Continental AG and also other major telematics suppliers like Omnitracs,

Trimble Navigation Ltd, Fleetmatics GPS, Masternaut, MiX Telematics etc.

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GLOBAL CONSUMER TELMATICS MARKET - TRENDS

With the rising demand for ubiquitous connectivity by the customer, Consumer Telematics

throws up a wide range of opportunities for the various participants in this field to gain a strong

foot-hold over the market. Since the time GPS navigation services were made open to public

use, consumer telematics has come a long way and developed into a multi-billion dollar market.

Some of the key market trends seen over the years are

Major share of revenues in the market are attributed to GPS navigation systems, Fleet

Management and Infotainment.

Since the early 2000s when the consumer telematics markets started off in a nascent

stage, the cost of the equipments have come down drastically, thereby increasing the

demand for telematics.

The trend of only high-end vehicles employing telematics is on the decline with other

mass production models of cars also are coming equipped with basic telematics system.

Though the U.S. is still the major market, other developing countries like China which

produces the highset number of passenger vehicles in the world are rapidly gaining

ground in the telematics market.

The Usage-based-Insurance(UBI) concept is fast catching up in Europe(especially

Western Europe) and could become a major contributor to the overall telematics

industry.

With decreasing equipment cost, reducing data plan charges and high demand for web

connectivity, the connected-car is definitely going to be the automobile of the future.

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RESEARCH METHODOLOGY

The quantitative and qualitative data collected for the Telematics market report is from a

combination of secondary and primary sources. Research interviews were conducted with senior

executives and/or managers of leading Telematics product manufacturers and its service

providers. These Key Opinion Leaders (KOLs) were then provided a questionnaire to gather

quantitative and qualitative inputs on their operations, performance, strategies and views on the

overall market, including key developments and technology trends. Data from interviews is

consolidated, checked for consistency and accuracy, and the final market numbers are again

validated by experts. The global market was split by products, services and geography based on

different factors like primary and secondary sources, understanding of the number of companies

operating in each segment and also KOL insights.

We have used various secondary sources such as directories, articles, white papers, newsletters,

annual reports and paid databases such as OneSource, Hoovers and Factiva to identify and

collect information for extensive technical and commercial study of the Telematics products and

services market.

The key players in the market and its value chain were identified through secondary research and

their market opinions were also gathered in a similar way through telephonic interviews and

questionnaires. We have also studied the annual reports of these top market players. Interviews

with key opinion leaders such as directors, managers, and marketing personnel were used

extensively in understanding the need and emergence of the global consumer Telematics market.

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THE ARC ADVANTAGE

An analytical model lies at the core of our process, ensuring logical consistencythroughout our research. We complement the model with secondary data andinterviews with industry experts to reflect the latest trends. With our final expert

validation, we provide you with only the most accurate and actionable intelligence.

THE ARC PROCESS

ANALYTICAL MODEL BASE MODEL CONSOLIDATED MODEL ARC MODEL

AnalyticalMethod

Base Method ConsolidationMethod

DelphiVerification

1. Granularbreakdown ofdrivers intofactors

2. Validate allfactors in termsof their presentimpact on themarket

3. Assign weightsto these factors interms of theirrelevance andimpact on themarket

4. Build theAnalytical Model

1. Get a top-down estimate ofthe market

2. Follow it upwith a bottom-upestimate of themarket

3. Checkforconsistencyand new growthfactors that arerelevant over thenext 10 Years

4. Build the Basemodel

1. Granularbreakdown ofdrivers intofactors

2. Validate allfactors in termsof their presentimpact on themarket.

3. Assign weightsto these factors interms of theirrelevance andimpact on themarket.

4. Build theConsolidatedModel

1. Verify thefindings of themodel withexperts fromacross the valuechain

2. Verify thefindings withplayers acrosssmall and largeenterprises

3. Tweak themodel and addnew factors

4. Finalize theARC Model

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Consumer telematics Research