Car Telematics and Wireless M2M – 5th Edition

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-to-date 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.

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