Abstract
Car Telematics and Wireless M2M is the fifth consecutive report analysing the
latest developments on the European market
This strategic research report from Berg Insight provides you with 150 pages
of unique business intelligence including 5-year industry forecasts and expert
commentary on which to base your business decisions.
This report will allow you to:
- Understand the dynamics of the European car telematics industry.
- Learn about the telematics strategies of the technology leading car
manufacturers.
- Evaluate the likelihood for eCall to become operational in 2014-2015.
- Identify the leading providers of aftermarket vehicle tracking solutions
and connected PNDs.
- Realise the potential importance of motor insurance providers in the
telematics value chain.
- Profit from valuable insights about the most successful business and
technology propositions on the market.
Where is the European telematics market headed?
Telematics is a broad term that may be applied to a wide range of automotive
IT solutions. Berg Insight' s definition of a car telematics solution in this
report is an automatic system designed for passenger cars which incorporate
some form of wireless communication via a wide area network. The history of
car telematics can be traced back to the first stolen vehicle tracking systems
based on RF communication using unlicensed frequency bands, which appeared on
the market in the 1980s. Subsequently mobile networks have enabled true online
connectivity with two-way communication at the same time as GPS technology has
been commoditised to the extent that high-accuracy satellite positioning can
be integrated into virtually any device. Today a standard telematics unit
features GPRS, GPS and frequently also some kind of interface to the
electronics systems of the vehicle. This kind of device may be used as a
platform for one or several types of applications.
Several categories of car telematics applications are today offered on a
commercial basis. These include eCall and driver assistance, SVR, connected
navigation, motor insurance telematics, road charging, leasing and rental
fleet management and vehicle diagnostics. eCall and driver assistance
applications deliver value in the form of improved safety and better
convenience when travelling. SVR facilitates recovery of the car in case of
theft and frequently entitles the owner to insurance benefits. Connected
navigation enables access to up-todate map data and other online services.
Motor insurance telematics combines SVR with innovative business models such
as PAYD (Pay- As-You-Drive). Road charging is gaining momentum as a new method
for financing privately operated motorways, raising tax revenues and tackling
congestion. Leasing and rental fleet management gives owners better control
over hired-out vehicles and enables new forms of contracts. Vehicle
diagnostics allows car manufacturers, dealers and workshops to improve their
service offering to car owners.
Berg Insight estimates that total shipments of car telematics systems in
EU27+2 reached 0.85 million units in 2009. Growing at a compound annual growth
rate of 35.0 percent, the shipments are expected to reach 1.6 million units in
2011. During the same period the number of active telematics service
subscribers is forecasted to grow at a compound annual growth rate of 23.1
percent from 3.5 million subscribers in 2009 to 5.4 million in 2011. From
2012, Berg Insight expects a sharp increase of OEM systems in preparation for
the full scale introduction of eCall. By 2015 the pan-European safety system
is anticipated to generate shipments of about 15 million OEM telematics units
and push the total number of active subscribers to 28.7 million in 2015.
Already in 2012 OEM systems are forecasted to catch up with aftermarket
systems in terms of shipments and active subscribers. eCall and other OEM
initiatives are also expected to curb the growth for aftermarket systems.
Until now OEM telematics propositions have so far largely failed to make a
significant impression on the European market. Availability is still
restricted to a handful of brands and models on selected markets. PSA and BMW
are still the most active players in the market, bundling telematics services
with navigation, audio and Bluetooth handsfree products. Recently they have
upgraded and extended their offerings to cover most of Western Europe. PSA was
also the first car manufacturer to have introduced an eCall device as a
standard feature on selected models from 2010. Fiat, Volvo Cars and premium
brands such as Porsche, Jaguar and Land Rover have also been active on the
market for some time. In late 2011, Berg Insight anticipates that additional
brands will launch OEM telematics solutions on the European market in response
to the eCall intiative within the EU. The European Commission has a strong
commitment to introducing eCall as a standard feature in all new cars and
recently set 2014 as the new target date for realising this vision - through
regulations if nessecary.
The aftermarket telematics market is now recovering from the economic crisis.
Particularly SVR product sales are linked to the demand for exclusive cars and
were affected by lower car sales in this segment during 2009. The adoption of
motor insurance telematics has slowed down somewhat as the initial success in
Italy proved difficult to transfer to additional markets. Insurance providers
are however now established as an important distribution channel for
aftermarket telematics providers in a number of countries and Octo Telematics,
which first developed it, is firmly established as the leading supplier.
Table of Contents
Table of Contents
List of Figures
Executive summary
1 Passenger cars in Europe
- 1.1 Introduction
- 1.2 Car manufacturers
- 1.3 Leasing and rental companies
- 1.4 Motor insurance
- 1.5 Emergency services and assistance providers
- 1.5.1 PSAP and SOC organisations
- 1.5.2 Assistance providers
- 1.5.3 Automobile clubs
- 1.6 Passenger cars and the environment
- 1.6.1 Electric vehicles
- 1.6.2 Hybrid electric vehicles
2 Car telematics solutions
- 2.1 Car telematics infrastructure
- 2.1.1 Vehicle segment
- 2.1.2 Tracking segment
- 2.1.3 Network segment
- 2.1.4 Service segment
- 2.2 Car telematics applications
- 2.2.1 eCall and roadside assistance
- 2.2.2 Stolen vehicle recovery
- 2.2.3 Motor insurance telematics
- 2.2.4 Leasing and rental fleet management
- 2.2.5 Vehicle diagnostics
- 2.2.6 Electronic toll collection and congestion charging
- 2.2.7 Connected navigation
- 2.3 Electric vehicles versus conventional vehicles
- 2.4 Aftermarket solutions versus OEM solutions
3 Market forecasts and trends
- 3.1 Car telematics market forecast
- 3.2 Application trends
- 3.2.1 eCall: The EC sets 2014 as new target for pan-European introduction
- 3.2.2 SVR: Declining price advantage for RF tracking against GSM/GPS
- 3.2.3 Motor insurance telematics: Spreading across Europe
- 3.2.4 Connected navigation: Low-cost factory-fit OEM solutions
- 3.2.5 Road charging: Privacy concerns may block online satellite
tracking systems
- 3.2.6 CRM: Telematics will be used to drive a connected CRM strategy for
OEMs
- 3.3 Value chain analysis
- 3.3.1 Aftermarket solution providers
- 3.3.2 OEM solution providers
- 3.3.3 Car brands and dealers
- 3.3.4 Telecom industry players
- 3.3.5 Continued consolidation trends in the aftermath of the financial
crisis
- 3.4 Future industry trends
4 Aftermarket vehicle tracking solutions
- 4.1 Value chain overview
- 4.2 Aftermarket vehicle tracking solution providers
- 4.2.1 AutoGuard
- 4.2.2 Autotxt
- 4.2.3 Cesar Satellite
- 4.2.4 Cobra Automotive Technologies
- 4.2.5 Detector
- 4.2.6 MetaSystem
- 4.2.7 Pointer Telocation
- 4.2.8 SECAR
- 4.2.9 TRACKER Network
- 4.2.10 Traqueur
- 4.2.11 Trafficmaster
- 4.2.12 Viasat Group
- 4.2.13 Other vehicle tracking vendors
- 4.3 Insurance industry telematics initiatives
- 4.3.1 Italy: Motor insurance providers adopt telematics to combat theft
and fraud
- 4.3.2 Spain: MAPFRE offers YCar targeting 18 - 30 year olds
- 4.3.3 United Kingdom: Coverbox PAYD has fitted 7,500 cars after one year
- 4.3.4 United Kingdom: Insure the Box new entrant with PAYD scheme
- 4.3.5 United Kingdom: Thatcham CAT 5 and TQA vehicle security standards
5 OEM telematics solutions
- 5.1 Value chain overview
- 5.2 Automotive suppliers
- 5.2.1 Actia
- 5.2.2 Continental Automotive Group
- 5.2.3 Delphi Automotive
- 5.2.4 Denso
- 5.2.5 Magneti Marelli
- 5.3 Telematics service providers
- 5.3.1 Airbiquity
- 5.3.2 Altea
- 5.3.3 ATX Group
- 5.3.4 Connexis
- 5.3.5 Eurowatch
- 5.3.6 Hughes Telematics
- 5.3.7 IMA
- 5.3.8 Octo Telematics
- 5.3.9 Tema.Mobility
- 5.3.10 WirelessCar
- 5.4 OEM telematics propositions
- 5.4.1 BMW
- 5.4.2 Fiat Group
- 5.4.3 Ford
- 5.4.4 Jaguar and Land Rover
- 5.4.5 Mercedes-Benz
- 5.4.6 Porsche
- 5.4.7 PSA Peugeot Citroen
- 5.4.8 Volvo Car
6 Connected navigation devices
- 6.1 Introduction
- 6.2 In-dash connected navigation solution providers
- 6.2.1 TomTom and Renault
- 6.2.2 TomTom and Fiat
- 6.2.3 TomTom collaborations with Sanyo and Sony
- 6.2.4 Aisin AW and Toyota
- 6.2.5 Masternaut
- 6.2.6 Trafficmaster
- 6.3 Connected PND solution providers
- 6.3.1 TomTom
- 6.3.2 Garmin
- 6.3.3 MiTAC International
- 6.3.4 Navigon
- 6.3.5 Medion
- 6.3.6 MyGuide Americas
- 6.3.7 Coyote System
- 6.3.8 Mobile Devices
- 6.4 Mobile navigation services
7 The European eCall initiative
- 7.1 Regulatory process
- 7.1.1 Activities of DG eCall and other working groups
- 7.1.2 Actions by the EC and EU Member States
- 7.1.3 Stakeholder positions on eCall
- 7.2 eCall functional specifications and standardisation
- 7.2.1 IVS functional specifications
- 7.2.2 MSD transport mechanism
- 7.2.3 PSAP requirements
- 7.3 Case studies
- 7.3.1 Germany: ADAC performs international feasibility trial of eCall
- 7.3.2 United Kingdom: National PSAPs support private eCall services
- 7.3.3 United States: GM OnStar provides emergency call service to 6
million cars
8 Road charging for passenger cars
- 8.1 Overview of ETC technologies
- 8.1.1 Automatic Number Plate Recognition (ANPR)
- 8.1.2 Dedicated Short Range Communication (DSRC)
- 8.1.3 GPRS/GPS
- 8.2 ETC charging concepts
- 8.3 Interoperability of ETC systems
- 8.4 Future developments and trends
- 8.5 Case studies
- 8.5.1 The national truck tolling scheme in Slovakia launched in January
- 8.5.2 Toll Collect in Germany generated revenues of € 4.4 billion
in 2009
- 8.5.3 Road pricing in Stockholm successful in cutting congestion
- 8.5.4 Planning for a nationwide road charging rollout in the Netherlands
- 8.5.5 The London congestion charge generates yearly revenues of €
367 million
- 8.6 Road charging solution providers
- 8.6.1 Autostrade
- 8.6.2 EFKON
- 8.6.3 GMV
- 8.6.4 Kapsch TrafficCom
- 8.6.5 Q-Free
- 8.6.6 Sanef Group
- 8.6.7 Satellic Traffic Management
- 8.6.8 Skymeter
- 8.6.9 Thales
Glossary
List of Figures
- Figure 1.1: Vehicle registration data (EU23+2 2009)
- Figure 1.2: Car incident statistics (EU23 2006)
- Figure 1.3: Passenger car manufacturer market shares (EU15+2 2009)
- Figure 1.4: Premium car brand market shares (EU15+2 2009)
- Figure 1.5: Top ten vehicle leasing companies by fleet size (Europe 2009)
- Figure 1.6: Top five vehicle rental companies by size (Europe 2010)
- Figure 1.7: Motor insurance market estimates (EU23+2 2006)
- Figure 1.8: Top 25 motor insurance providers (EU23+2 2006)
- Figure 1.9: PSAP distribution in selected European countries (2009)
- Figure 1.10: Insurance-owned assistance providers (2009)
- Figure 1.11: Top 10 automobile clubs in Europe (2010)
- Figure 2.1: eCall application lifecycle
- Figure 2.2: SVR application lifecycle
- Figure 2.3: Motor insurance telematics application lifecycle
- Figure 2.4: Leasing and rental fleet management application lifecycle
- Figure 2.5: Vehicle diagnostics application lifecycle
- Figure 2.6: Electronic toll collection application lifecycle
- Figure 2.7: Connected navigation application lifecycle
- Figure 3.1: Car telematics shipments and active subscribers (EU27+2 2009 -
2015)
- Figure 3.2: Providers of proprietary RF vehicle tracking systems (2010)
- Figure 3.3: Examples of motor insurance telematics propositions in Europe
- Figure 3.4: Top five aftermarket vehicle tracking solution vendors (Europe
2009)
- Figure 3.5: SIM-cards managed by telematics service providers (EU27+2 2009
- 2015)
- Figure 3.6: Mobile operator agreements with OEM telematics providers in
Europe
- Figure 4.1: AutoGuard SVR pricing plan (2010)
- Figure 4.2: Cobra AT SVR subscribers, by country (Europe December 2009)
- Figure 4.3: Traqueur SVR pricing plan (October 2010)
- Figure 4.4: Examples of second tier vehicle tracking vendors in Western
Europe
- Figure 4.5: Motor insurance market statistics in selected European
countries (2006)
- Figure 4.6: Selected motor insurance telematics offerings (Italy 2008)
- Figure 4.7: Thatcham CAT 5 and TQA system requirements
- Figure 4.8: Thatcham CAT 5 and TQA approved tracking systems (October 2010)
- Figure 5.1: Tema.Mobility system architecture
- Figure 5.2: Pricing for BMW ConnectedDrive (Western Europe 2010)
- Figure 5.3: Jaguar Watch and Land Rover Watch pricing plan (UK 2010)
- Figure 5.4: New subscribers for Porsche Vehicle Tracking System (2007 -
2009)
- Figure 5.5: PSA Appel d' urgence emergency call solution
- Figure 5.6: Pricing examples for Volvo On Call (Western Europe 2010)
- Figure 6.1: Personal navigation system categories
- Figure 6.2: In-Dash navigation market shares in Europe 2009
- Figure 6.3: PND brands by original industry
- Figure 6.4: Connected PNDs from TomTom and Garmin
- Figure 6.5: Connected PND models from TomTom on the European market (2010)
- Figure 6.6: Smartphones with GPS and navigation software
- Figure 7.1: eCall establishment and lifecycle
- Figure 7.2: MSD draft specification
- Figure 8.1: Nationwide Tolling and City Tolling Schemes in Europe (2010)
- Figure 8.2: DSRC Transponder
