Upload
hoangngoc
View
237
Download
5
Embed Size (px)
Citation preview
Chennai, January 18, 2017
Telematics in India: Trends and Opportunities
2 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Agenda
Telematics: An overview Brief overview of the significance of telematics in automotive
A
Telematics market Global market overview, Deep dive into Indian telematics market including characteristics, market structure and drivers
B
Trends and opportunities in India Key trends and characteristics of telematics ecosystem, potential opportunities for Indian players
c
4 20170118_Connected Vehicles 2017_Telematics_Short.pptx
In automotive sector, telematics equipment offers a wide variety of features to help make the vehicle smarter
Telematics:
Telecommunications + Informatics
Proactive maintenance
Driver behavior
Journey analysis
Vehicle tracking
GPS and navigation
Accident recording
Accident notification
Vehicle theft tracking
Fuel management
Intra-fleet benchmarks
Vehicle diagnostics
Vehicle logbook
Mileage reporting
Internet connectivity
Services facilitated by telematics equipment in automotive industry
Source: Secondary research, Roland Berger
Telematics – An overview
5 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Globally, the vehicle telematics market is valued at USD 39 Bn; strong growth at 18% CAGR projected till 2022
Global vehicle telematics market revenue, 2014 – 2022 [USD Bn]
103
88
7564
5546
3933
28
2014 2015 2016E
+18%
2018F 2022F 2021F 2020F 2019F 2017F
Revenue share by vehicle type, 2015 [%]
66%
34%
CV
Others
> Global vehicle telematics market is valued at ~USD 39 Bn is 2016, it is expected to grow at CAGR 18% to USD 103 Bn in 2022
> Global telematics market is dominated by commercial vehicles which account for nearly two thirds of the total share
> "Others" segment includes passenger vehicles, aircrafts etc.
– Passenger vehicles drives demand in this segment primarily due to significant usage in cab services and increased deployment in
medium and high end passenger vehicles such as Volkswagen, BMW, Audi etc.
Global vehicle telematics market: Overview
Global telematics market
Source: Secondary research, Roland Berger
WGA - add slides on global CV telematics market since it is very different from India
NA – Added 3 slides – market overview and why connectivity is important in trucks
6 20170118_Connected Vehicles 2017_Telematics_Short.pptx
EMEA dominates the global CV telematics market with a 38% share; APAC is expected to be the leading contributor by 2022
Global telematics market – Commercial vehicles
Global CV telematics market revenue, 2014 – 2022 [USD Bn]
62
53
46
4034
3025
2219
2016E 2014 2015 2020F 2017F 2018F 2019F 2021F 2022F
+16%
Revenue share by region, 2015 [%]
Americas
26%
36%
EMEA 38%
APAC
> CV telematics finds applications in various fields such as passenger safety and security, customer relationship management, business
services such as fleet management and tracking as well as private services such as navigation support to passengers
> EMEA accounts for the greatest share of the market – regulatory initiatives such as eCall Driver Safety project are a key driver
> APAC is the second largest market driven by countries such as China, Japan, India etc. – By 2022, APAC is expected to be the leading
contributor to global commercial vehicles telematics market
Global commercial vehicle telematics market: Overview
New slide
Source: Secondary research, Roland Berger
7 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Key driver behind growth in CV telematics is that it enables a greater value chain coverage….
Cov
erag
e
Transportation value chain
High
Low
New vehicle
sales
Fleet mgmt. Service/
repair
Spare part
sales
Rental Financial
services
Fleet/vehicle
operation
Coverage 2013 Coverage 2030
> Connectivity based solutions enable OEMs to understand their customers' needs and address them with tailored product and service offerings – OEMs need to strengthen
their aftersales business – Increased customer retention required
– Moreover OEMs are requested to serve growing customer demand – Extended support and user-specific products and services (e.g. remote diagnostics)
Enabler connectivity
Importance of truck connectivity
Profit pool coverage Connectivity solutions
Source: Roland Berger
Remote diagnostics
Load detection/ monitoring Performance analysis
Order management
Tacho management
…
Connectivity solutions
Global telematics market – Commercial vehicles
New slide
8 20170118_Connected Vehicles 2017_Telematics_Short.pptx
8
and enables OEMs to differentiate themselves and capture opportunities beyond vehicle sales
Truck OEM engagement/core business 2013 2030
> There is a higher engagement of OEMs along the value chain who are expected to market themselves as full-service providers
> Logistics providers will require extended services and tailored solutions such as fleet/vehicle operation models
> Logistics companies will focus on business contracting and operation of core routes – maintaining capacity/cost flexibility when contracting new business or facing demand volatility and business risks
100%
0%
Fleet/vehicle operation
Transportation business
New vehicles ("Iron & steel")
Financial services
Spare part sales
Fleet management
> Route execution
> Driver lease
> Vehicle lease
Transportation value chain
OEM engagement/ core business
Source: Roland Berger
OEM engagement along the transportation value chain – Outlook 2030
Rental
Service/repair
Global telematics market – Commercial vehicles
New slide
9 20170118_Connected Vehicles 2017_Telematics_Short.pptx
In India, telematics market is still at a nascent stage; commercial vehicles market dominates the overall market
CV Telematics introduced for the first time in India
Launch of Mahindra e2o plus (an electric vehicle), first connected car in India
Government mandates that GPS and panic buttons are a must for all taxis
CV manufacturer Ashok Leyland launches Alert, a GPS based telematics service
Evolution of telematics in India
2003
2008 2013
2015
2012
Government announces that it plans to install tracking and fleet management services in 400,000 buses by 2017
Characteristics of Indian market
1 Dominance of CV sector
> Adoption low in PV and single truck owners due to prohibitive costs
> Primary usage by fleet operators and taxi companies
2 Use of basic services
> Usage of telematics in India is characterized by basic services like fleet tracking and management
> Optimization of fuel costs as well as safety and security concerns are expected to drive growth in future
– Apart from CVs, small and medium car segments offer high growth opportunities
Source: Secondary research, Roland Berger
Telematics market in India
Indian telematics market: Evolution and characteristics
10 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Vehicle telematics is gaining popularity mainly due to its advantages such as safety, information, navigation and remote diagnostics
Telematics
in
Indian market
> Telematics provides the car with anti-theft
features through tracking the location of
the car and an automated interface with
law enforcement agencies
> This reduces the response time, which
leads to reduction in vehicular theft
Safety against thefts
Navigation
Remote diagnostics
> Data collected by telematics black box
can provide valuable insights into
functioning of the vehicle thus providing
service reminders
> Driving behavior had also led to promotion
of usage based insurance in India
Wireless connectivity
> With increasing penetration of mobile
technology in India, there is an increased
demand for V2X connectivity of cars
> Hands free calling, Bluetooth compatibility
and smartphone connectivity are in high
demand in urban users
> GPS connectivity and navigation services
have become high demand due to
increasing complexity of road network in
cities and availability of real-time traffic
information availability through online data
Factors promoting telematics in automotive market
Source: Secondary research, Roland Berger
Telematics market in India
11 20170118_Connected Vehicles 2017_Telematics_Short.pptx
CV telematics market in India is expected to grow at 25% p.a., mainly led by after-market segment and entry level solutions
1,383
293
+25%
2015 2022F
Telematics installed base ['000 units] Split of installed base
Type of fitment Type of solution
Split by region Split by industry
Aftermarket
84%
16%
OEM
31%
1%
68%
Mid tier
Entry level
High end
Others Tourism
3% Retail 11%
Pharma
12%
21%
Cold chain
27%
Courier
26%
South
North
West
East
13%
27%
28%
32%
Telematics penetration in CV market in India
Source: Secondary research, Roland Berger
Telematics market in India – Commercial vehicles
12 20170118_Connected Vehicles 2017_Telematics_Short.pptx
There are ~20 players in the domestic market, top 3 account for 60% of the total market
Comments CV telematics market share in India [2014]
30%
17%
Others
5%
4% Mahindra
Dhanus Technologies
Ashok Leyland Telematics
CMC Technology
10%
7%
e-Logistics
Trimble
16%
11% Arya Omnitalk
Source: Secondary research, Roland Berger
Competitive landscape in CV telematics
> The Indian telematics industry is highly competitive
> The competitive environment is further expected to
intensify with increasing product extensions, more
advanced offerings, technological innovations and
M&A
> Trimble is the market leader with 30% market share.
The top three players (Trimble, Arya Omnitalk and
CMC Technology) account for ~60% of the total market
share
> To remain competitive in the market, vendors not only
have to develop new technologies but also keep
abreast of global developments and emerging
technologies that could potentially impact their product
portfolio
Telematics market in India – Commercial vehicles
13 20170118_Connected Vehicles 2017_Telematics_Short.pptx
OEMs operating in India are entering partnerships with telematics players to offer integrated fleet management solutions for logistics
Telematics Systems
Source: Secondary Research, Roland Berger
Navigation
Real Time Tracking Geofencing SMS Alerts & Queries
Real Time Tracking Geofencing SMS Alerts
Real Time Tracking Geofencing SMS Alerts
Real Time Tracking Geofencing SMS Alerts & Queries
Real Time Tracking SMS Alerts
Fleet Management
Trip Management Driver Analysis Report Generation
Driver Analysis Report Generation
Driver Analysis Report Generation
Driver Analysis Report Generation
Safety & Security
Anti theft alerts
Anti theft alerts Collision Warning Systems in school buses
Anti theft Immobilizer Emergency SOS button Driver Assistance System
Anti theft alerts Fire Detection and Supression System for buses
Multi Drive Mode for driving assistance
Remote Unit Mgmt. Maintainence Reminders
Remote Diagnostics Maintenance Reminders
Maintenance Reminders
Vehicle Mgmt. Others
Mobile App connectivity Infotainment and Passenger Info System for buses
Infotainment and Passenger Info System for buses
Mobile App connectivity Infotainment and Passenger Info System for buses
Infotainment System for buses
Driver Analysis Report Generation
Maintenance Reminders Mobile App connectivity Infotainment System
Telematics market in India – Commercial vehicles
WGA - I had footnotes in these slides, eg. for bharat benz as this was a dealer solution, where are they?
NA – Added, double-checked discrepancy, they were missing in the source from where I had taken this slide
1)
1) Trident Trucking, dealer of Bharat Ben in Karnataka, has partnership with Ormat
14 20170118_Connected Vehicles 2017_Telematics_Short.pptx
On the other hand, connected cars market in India is still at a nascent stage; reach expected to hit 2.6% in 2020
2016 2018
465
2017
634
226
2015 2014
852
142
2020 2019
77
333
# connected cars
Connected cars in India ['000 units]
2.6% 2.1% 1.6% 0.9% 0.6% 0.4% 1.3%
% Penetration in India
Revenue in the "Connected Car" market [USD m]
2014 2020
2,430
658 Safety & Driving Assistance
2018
933
Connectivity
Navigation Services
2016
Diagnostics & Maintenance
2015 2019
453
1,298
2017
302
1,786 Content & Services
+30.0%
+70.4%
+49.1%
+85.0%
+38.8%
CAGR
2014-20
Connected car market in India
> Connected cars segment include cars with connectivity to the internet (“embedded telematics”), Wi-Fi Hotspots within the car, safety and
driving assistance systems, navigation services, location-based advertising, payment, predictive maintenance, usage-based insurance,
remote update services, infotainment, productivity services
> The market's largest segment is the segment "Safety & Driving Assistance" with a market volume of USD 486 m in 2016 and would continue
to be the largest in future as well
Source: Statista; Roland Berger analysis
Telematics market in India – Passenger vehicles
Slide can be hidden if required as this is the only slide which talks about PV telematics. There is not much data available on PV telematics market in India
15 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Telematics ecosystem will involve diversified competencies…
Source: Roland Berger analysis
Distribution of the connected vehicle / device
Management of client relationship
Manufacturing of components and interface
Manufacturing of Intelligence /
OS Connectivity supply
Data processing Services providing
> Manufacturing of hardware: screens, control
interface, sound system, measuring elements,
modem, connected devices (embedded,
aftermarket or brought-in)
> Development of operating systems and
connected intelligence inc. HMI/ IVI1) (external
to core-car onboard computer)
> Distribution of connected vehicle or device
> Providing of
connectivity hardware
(simcard, Wifi etc.)
> Providing of connectivity
services (prepaid,
subscription…)
> Data analytics and knowledge generation:
local and central data storage, encryption,
enrichment, calculation
– Driver data
– Personalized cloud data
– Vehicle data
– Vehicle health status data
> Creation and commercialization of apps and
software
Telematics market in India – Trends and opportunities
WGA - This slide is not clear to
me pls explain
NA – The slide shows various competencies that will be required in the present/future to leverage telematics
They include
1)Manufacture of components (in vehicle connectivity devices) and associated interfaces
2) Development of OS and intelligence (off-vehicle devices such as sensors connected to environment and their underlying logic)
3) Connectivity supply includes hardware and associated services to leverage telecom technologies
4) Data processing and analytics
5) Providing services based on data collected from vehicle or 3rd party content providers
Other competencies include distribution of devices (could possibly be done by a different company) and management of client relationship which would include skills pertaining to customer lifecycle management 1) In-vehicle infotainment
16 20170118_Connected Vehicles 2017_Telematics_Short.pptx
… and greatly expand the playing field by bringing in new players
Traditional players New players
IT/INFRASTRUCTURE PROVIDERS OPERATORS
DEVICE MANU-
FACTURERS
INTERNET COMPANIES
IT SERVICE PROVIDER
SUPPLIERS
SPECIFIC SERVICES
Reach new customers and keep the control of
the client relationship
Major actors of the connected car environment
Consolidate position on intelligence systems, avoid
new entries…
Extend business to new usages…
Extend the connectivity and mobility way of life to new universes …
Reinforce the relationship with customers, optimize vehicle design and usage…
OEMs
Telematics market in India – Trends and opportunities
Source: Roland Berger analysis
17 20170118_Connected Vehicles 2017_Telematics_Short.pptx
The changing ecosystem will also lead to new alliances, roles and underlying principles
New
Alliances
> Insurance groups could team up with navigation and emergency call system providers to get access to driver data
> Network giants such as Google etc. could sponsor mobile internet access from the vehicle
New
Roles
> Automotive companies are becoming software developers
> Telecom companies are starting to see themselves as automotive suppliers for data transfer channels
> Hardware companies become analytics provider/operator, for example Octo Telematics
New speed,
new principles
> Automotive industry needs to realign itself – new cycles, partners ….
> IT industry development cycles are much faster than those of car manufacturers
Telematics market in India – Trends and opportunities
Source: Roland Berger analysis
Changes in the new ecosystem WGA - where is this from, what is
Octo Telematics
NA – Taken from the pdf document you had shared titled ' Who will drive the Connected car?' (page 13)
Octo telematics is one of the initial entrants into telematics insurance opportunities and have built solutions to help insurers and drivers by capturing data such as driving behavior, location, duration, contextual elements and crash impact information
20 20170118_Connected Vehicles 2017_Telematics_Short.pptx
As a result, several opportunities open up; Indian players can leverage and monetize these to build successful businesses
Domain Potential opportunity description Sno.
2 Driver assistance and related services
(Services based on underlying product solutions)
IT services
(Supporting software/enabler solutions)
> Integration, management and maintenance of entire consumer information stack
> Cyber security solutions 3
Opportunities for Indian players [selection] Not exhaustive
Telematics market in India – Trends and opportunities
Source: Secondary research, Roland Berger
1 Connectivity solutions
(Product (largely hardware) focused)
> Providing hardware and software solutions which leverage various communication technologies and enable M2M1) communication
> Common applications include various ADAS sensors such as driver drowsiness detection, parking assist, lane departure warning systems, lane keep assist etc.
1) M2M – Machine-to-machine
WGA - what does this mean
concretly?
NA – Service offerings in the telematics market will either be based on data collected from vehicles/drivers or gathered from other 3rd party providers. Content providers are those 3rd party providers. For example, Facebook can be a content provider and provide my social media related data which can be leveraged to form a service that tells me which of my friends are nearby on my driving route. Similarly, Zomato can be a content provider and can tell me average ratings of various restuarants nearby on my driving route
Data processing and services
> Data analytics services to record various types of vehicle and driver data; some examples include
– Driver data including his preferences, condition, fatigue, behavior etc.
– Vehicle data including vehicle health, GPS location, position, speed etc.
– Data from vehicle environment such as traffic lights, weather etc.
> Formulation of service modules such as those pertaining to navigation, diagnostics etc.
Content providers
> Providing all relevant data (e.g. social, consumer preferences etc.) from users to vehicles
> Development and distribution of various services to different players in the playing field
Segregated growth areas into product (primarily hardware with some software), services and supporting software/enabler solutions
Added ADAS point in "hardware" side as it is largely sensor driven
21 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Hardware is a fast-growing segment within telematics market with ~ 21% CAGR till 2022; connectivity solutions are a key component
Hardware market growth in India CV telematics[USD m]
3719
174
48
185
90
378
5
2015 2022F
Installation Hardware Services
+19.6%
+24.8%
+21.4%
CAGR
2015-22
> Hardware market is an important component of overall telematics market accounting for more than 50% of share in 2015
> It is expected to grow at CAGR 21% till 2022 to a total market size of USD 185 m within overall CV telematics market; separate potential within other segments such as PV, aircrafts etc.
> Hardware market includes on-board, off-board units and associated interfaces – both in-vehicle as well as those outside the vehicle
– Key examples of products include connected devices such as sensors and other devices including ADAS devices which enable machine-to-machine communication
> Compared to software, hardware complexity in Indian market is still evolving – growth in telematics has made hardware structure more complex and sophisticated which is expected to slow down overall market growth
Trends and opportunities – Connectivity solutions
Source: 6WResearch, Secondary research, Roland Berger
CV telematics market growth by hardware, services and installation costs
New slide to show market potential
Corresponding data was not available for PV telematics market in India and hence have considered only CV
25 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Services is the fastest growing segment within telematics market with ~ 25% CAGR till 2022; significant potential exists
Services market growth in India CV telematics[USD m]
3719
174
48
185
90
378
5
2015 2022F
Installation Hardware Services
+19.6%
+24.8%
+21.4%
CAGR
2015-22
> Services market is an important component of overall telematics market accounting for ~ 40% share in 2015
> Services market is expected to grow at CAGR 25% till 2022 to a total market size of USD 174m within overall CV telematics market; separate potential within other segments such as PV, aircrafts etc.
> Services market value chain includes actors such as content provider, content aggregator, application providers and integrators
– Key examples of offerings include analytics based services for diagnostics, fleet management, fuel cost optimization, navigation etc. as well as infotainment/ entertainment services
Trends and opportunities – Driver assistance and related services
Source: 6WResearch, Secondary research, Roland Berger
CV telematics market growth by hardware, services and installation costs
New slide to show market potential
Corresponding data was not available for PV telematics market in India and hence have considered only CV
35 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Since the market is in a nascent stage, multiple opportunities exist – key is to tailor your offerings to Indian context
Trends and opportunities – Examples of select Indian offerings
Source: Secondary research, Roland Berger
Solution Potential/existing tapped opportunity Sno. Rationale
Parking solution > PparkE offers parking solutions in the city through few taps on the phone
> Phone sensors and applications can inform users of nearby parking spots, pre-book spots, navigate them to chosen spot and pay required amounts
1 > Average urban driver spends ~40 minutes to find parking slot
> Parking is a major hassle with limited spaces in garage
Entertainment during commute
> Potential opportunities include bringing engaging applications such as social media etc. to driver
– Examples include customized recommendations, alerts on places of interest, friend suggestions enroute etc.
> Key point to keep in mind is that all opportunities must be brought in a driver friendly manner which does not hamper driving by distracting drivers
> OEMs such as Volkswagen launched IPL edition cars in India, which could connect to Internet and get live cricket feeds on interactive live display screens to cash in on the cricket fever in India
2 > Average urban driver spends ~90 minutes driving to and fro from the workplace, representing a large portion of their entire day
IPL edition cars source
http://www.oncars.in/car-news/volkswagen-launches-vento-ipl-edition-update/153
Source
https://www.pparke.in/
https://pparke.in/info/2015/06/26/66/
WGA - How does this tie to the discussions earlier? where are CV applications? can we talk about Hitex Robotics as well and
their ADAS applications? Are there other examples that we should have here?
NA – Hidden this slide since it doesnt tie up in the storyline. Will add ADAS applications in the previous section on services
36 20170118_Connected Vehicles 2017_Telematics_Short.pptx
Contact us
Your contact at Roland Berger
Dr. Wilfried Aulbur Managing Partner India Member of the Supervisory Board Roland Berger E-mail: [email protected] Mobile: +919920630131
Office address: Mumbai
702, VIBGYOR Tower,
Bandra Kurla Complex,
Mumbai - 400 051
Delhi (Gurgaon)
Level 18, DLF Cyber City,
Building No. 5, Tower A,
Phase III, Gurgaon - 122 002
Pune
4th Floor, Alaina Building,
Lane 8, Koregaon Park,
Pune – 411 001
Chennai
Level 5, Tamarai Tech Park,
S.P. Plot No.16-19 & 20-A,
Thiru Vi Ka Industrial Estate,
Inner Ring Road, Guindy,
Chennai – 600032