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  4. > The Global Automotive OEM Telematics Market – 2nd Edition

The Global Automotive OEM Telematics Market – 2nd Edition

  • October 2015
  • -
  • Berg Insight AB
  • -
  • 180 pages

Executive summary
Telematics is a broad term that may be applied to a wide range of automotive connectivity solutions. Berg Insight’s definition of a car telematics system in this report is an automatic system designed for passenger cars that incorporates some form of cellular communication. Mobile networks have enabled online connectivity with two-way communication at the same time as GPS technology has been commoditised to the extent that satellite positioning can be integrated into virtually any device. Automotive manufacturers can choose between several connectivity options when creating connected car services, which are not mutually exclusive. The main options are embedded telematics devices, tethered devices and integrated smartphones. With embedded systems the connectivity and intelligence is built into the car. In the case of tethered devices, the connectivity is provided by an external modem or handset while the intelligence is built into the car. Solutions relying on integrated smartphones leverage the connectivity and intelligence built into the smartphone. Carmakers often use a combination of these options to address different customer requirements and keep pace with the rapid development of mobile technology.

Several categories of car telematics applications are now offered on a commercial basis by most leading carmakers. Examples include eCall and roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, connected navigation and infotainment, as well as convenience applications. Convenience applications mainly rely on embedded telematics devices to enable remote control of vehicle functions such as door lock/unlock, vehicle preconditioning (heating or cooling of the passenger compartment before a trip) and finding the last parking position. Several other applications also exist, for instance usage-based insurance, leasing and rental fleet management, as well as electronic toll collection and road charging. However, these applications are usually offered by aftermarket service providers. The connected car is a major trend in the automotive industry and virtually all of the world’s leading carmakers have launched mass-market services in key regions. The drivers behind adoption of OEM telematics are both commercial and regulatory. Regulatory initiatives related to safety and security will have a decisive effect on the adoption of OEM telematics in Europe and Latin America. The EU’s eCall initiative and Russia’s ERA-GLONASS set the sight on
making an automatic emergency call device a mandatory safety feature in all new cars sold.

Brazil’s government for its part is pushing car manufacturers to install security tracking devices on all vehicles sold in the country through the so called CONTRAN 245 mandate. In North America, commercial services have driven the adoption of OEM telematics services that have evolved from being a differentiator to a mainstream feature now offered by nearly all the leading car brands on a majority of their models. Berg Insight estimates that nearly 15 percent of all new cars sold worldwide in 2014 were equipped with an OEM embedded telematics system, up from 12 percent in 2013. North America is the most advanced market with an attach rate of 34 percent. Other developed markets such as Europe, Japan and South Korea currently have attach rates of 14–15 percent. China has emerged as an important market for telematics services with an attach rate of about 8 percent in 2014. In other regions, the attach rate is only 1–5 percent. GM and BMW are the leading adopters of embedded telematics, widely offering the technology as a standard feature across models and geographies. GM has offered telematics services for more than a decade, offering the technology as an integral part of its value proposition in North America and China. Since August 2015, GM is also launching the OnStar service throughout Europe. BMW introduced its ConnectedDrive service in North America and Western Europe in 1997. ConnectedDrive has since become a standard feature on a growing number of models, now available in nearly 40 countries on all continents. Other major car brands offering embedded telematics on a broad scale include PSA, Hyundai, FCA Group, Toyota, Renault and Volvo.

Berg Insight estimates that total shipments of embedded OEM telematics systems reached 11 million units worldwide in 2014. Growing at a compound annual growth rate of 31.1 percent, the shipments are expected to reach 56 million units in 2020. The number of telematics subscribers using embedded systems is forecasted to grow at a compound annual growth rate of 39.9 percent from 20.5 million subscribers in 2014 to 153.4 million in 2020. However, by 2020 many users will only have access to safety services such as eCall. Berg Insight forecasts that the number of active subscribers using at least one additional premium telematics service will grow to about 110 million worldwide at the end of 2020.

Table Of Contents

The Global Automotive OEM Telematics Market - 2nd Edition
Index
Table of Contents
Table of Contents . i
List of Figures . vii
Executive summary . 1
1 The global passenger car market 3
1.1 Introduction .. 3
1.1.1 Passenger cars in use by region ... 4
1.1.2 New passenger car registration trends . 6
1.2 Car manufacturers ... 9
1.2.1 Toyota Motor Corporation . 9
1.2.2 Volkswagen Group 9
1.2.3 General Motors .. 9
1.2.4 Renault-Nissan Alliance ... 13
1.2.5 Ford Motor Company .. 13
1.2.6 Hyundai Motor Group . 14
1.2.7 Fiat Chrysler Automobiles ... 14
1.2.8 BMW Group . 17
1.2.9 Daimler Group . 17
1.2.10 Honda Motor ... 17
1.3 Overview of car OEM telematics services . 18
1.3.1 Embedded and hybrid telematics systems . 18
1.3.2 Car OEM telematics services in North America .. 20
1.3.3 Car OEM telematics services in Europe .. 22
1.3.4 Car OEM telematics services in Asia-Pacific ... 25
1.3.5 Business models . 25
1.4 Regulatory compliance .. 27
1.4.1 Vehicle security, safety and emergency call regulations 27
1.4.2 Vehicle emissions 29
1.5 Market trends . 31
1.5.1 Hybrid electric, plug-in hybrid electric and all-electric vehicles .. 31
1.5.2 Car sharing and personal transportation as a service 37
1.5.3 ADAS and autonomous driving technologies . 41
2 Car telematics solutions 43
2.1 Car telematics infrastructure .. 43
2.1.1 Vehicle segment .. 44
2.1.2 Tracking segment 45
2.1.3 Network segment 46
2.1.4 Service segment .. 47
2.2 Car telematics applications ... 48
2.2.1 eCall and roadside assistance 48
2.2.2 Stolen vehicle tracking 49
2.2.3 Motor insurance telematics . 51
2.2.4 Vehicle diagnostics and maintenance 52
2.2.5 Leasing and rental fleet management . 53
2.2.6 Electronic toll collection and congestion charging . 54
2.2.7 Remote control and convenience services . 55
2.2.8 Connected navigation and infotainment . 56
2.2.9 Wi-Fi hotspot ... 57
2.3 Connectivity options .. 58
2.3.1 Tethered devices . 59
2.3.2 Integrated smartphone solutions 59
2.3.3 Embedded connectivity solutions ... 60
2.3.4 SIM solutions and embedded UICC ... 61
3 OEM telematics propositions . 63
3.1 BMW .. 67
3.1.1 Overview of BMW group passenger car models 67
3.1.2 BMW ConnectedDrive infotainment and mobility services . 68
3.1.3 The MINI Connected smartphone integration system 72
3.2 Daimler Group ... 73
3.2.1 Overview of Mercedes-Benz passenger car models .. 73
3.2.2 The COMAND Online infotainment system . 74
3.2.3 Mercedes-Benz connected services ... 74
3.2.4 COMAND Online and Connect Me services in Europe ... 74
3.2.5 Mbrace: Mercedes-Benz' connected service platform in the US ... 75
3.3 Fiat Chrysler Automobiles . 78
3.3.1 Overview of Fiat Chrysler Automobiles passenger car models .. 79
3.3.2 The Uconnect infotainment systems ... 79
3.3.3 Uconnect Access connected services 80
3.4 Ford Motor Company 83
3.4.1 Overview of Ford passenger car models 84
3.4.2 The Ford SYNC infotainment system .. 85
3.4.3 Ford SYNC connected services .. 86
3.5 General Motors .. 88
3.5.1 Overview of the main GM passenger car brands ... 88
3.5.2 GM OnStar telematics services ... 90
3.5.3 Connected infotainment systems and apps ... 94
3.6 Honda Motor Company . 95
3.6.1 Overview of Honda and Acura passenger car models ... 95
3.6.2 Overview of Honda and Acura telematics solutions ... 96
3.6.3 The HondaLink in-car connectivity system . 96
3.6.4 The AcuraLink connected car systems and services.. 98
3.7 Hyundai Motor Group .. 100
3.7.1 Overview of Hyundai and Kia passenger car models ... 101
3.7.2 Overview of the Hyundai Motor Group's telematics solutions .. 102
3.7.3 The Hyundai Blue Link telematics service in the US . 102
3.7.4 The Kia UVO infotainment system and UVO telematics services . 104
3.8 Jaguar Land Rover Automotive ... 105
3.8.1 Overview of Jaguar Land Rover passenger car models ... 106
3.8.2 Jaguar Land Rover InControl telematics services 106
3.9 Mazda Motor Corporation ... 109
3.9.1 Overview of Mazda passenger car models ... 109
3.9.2 The Mazda Connect infotainment system . 110
3.10 Nissan Motor Company ... 111
3.10.1 Overview of Nissan and Infiniti passenger car models . 112
3.10.2 The Nissan CARWINGS telematics service... 112
3.10.3 The Infiniti Connection connected car services 113
3.10.4 The NissanConnect and Infiniti InTouch connected infotainment systems .. 114
3.11 PSA Peugeot Citroën ... 117
3.11.1 Overview of Peugeot and Citroën passenger car models 118
3.11.2 PSA Peugeot Citroën telematics services . 118
3.12 Renault Group . 120
3.12.1 Overview of Renault and Dacia passenger car models 121
3.12.2 The Carminat TomTom and Renault R-Link connected infotainment systems 121
3.13 Subaru . 122
3.13.1 Overview of Subaru passenger car models .. 122
3.13.2 The Subaru STARLINK infotainment and smartphone connectivity system . 123
3.13.3 G-BOOK telematics services in Japan .. 124
3.14 Tesla Motors 125
3.14.1 Overview of Tesla passenger car models . 125
3.14.2 Tesla telematics and infotainment services .. 126
3.15 Toyota Motor Corporation ... 127
3.15.1 Overview of Toyota and Lexus passenger car models . 127
3.15.2 Overview of Toyota and Lexus telematics services .. 128
3.15.3 New T-Connect and G-LINK telematics services for the Japanese market .. 129
3.15.4 Entune/Enform and Safety Connect telematics services for North America 130
3.15.5 The Toyota T-Connect telematics services in the Middle East . 131
3.15.6 Toyota and Lexus connected infotainment systems in Europe 132
3.16 Volkswagen Group .. 133
3.16.1 Overview of Volkswagen Group passenger car brands and models ... 134
3.16.2 The Audi Connect telematics service 136
3.16.3 The Porsche Car Connect telematics service ... 137
3.16.4 The Volkswagen Car-Net telematics services ... 139
3.17 Volvo Car Group .. 142
3.17.1 Overview of Volvo passenger car models . 143
3.17.2 The Volvo On Call telematics service 143
3.17.3 The Volvo Sensus Connect infotainment system . 144
4 Telematics solution providers .. 145
4.1 Telematics service providers ... 145
4.1.1 Airbiquity 146
4.1.2 Altea ... 147
4.1.3 Beijing Yesway Information Technology ... 147
4.1.4 Connexis 148
4.1.5 Octo Telematics 148
4.1.6 PATEO ... 149
4.1.7 SiriusXM Connected Vehicle Services .. 150
4.1.8 WirelessCar ... 151
4.2 Mobile operators .. 152
4.2.1 ATandT .. 153
4.2.2 Deutsche Telekom 155
4.2.3 Sprint . 157
4.2.4 Telefónica Group ... 158
4.2.5 Verizon Communications and Verizon Telematics ... 159
4.2.6 Vodafone and Vodafone Automotive 160
5 Market forecasts and trends 163
5.1 Car telematics market forecasts .. 163
5.1.1 Car sales forecast .. 163
5.1.2 Car telematics in the EU28+EFTA and Eastern Europe ... 164
5.1.3 Car telematics in North America ... 166
5.1.4 Car telematics in Latin America . 167
5.1.5 Car telematics in Asia-Pacific 169
5.1.6 Car telematics in the Middle East and Africa 170
5.1.7 Hardware and service revenue forecast ... 171
5.1.8 Data modem chipset shipments by technology ... 175
5.2 Application trends 175
5.2.1 Mass market safety services driven by regional mandates .. 176
5.2.2 OEM SVT services compete with aftermarket services in many countries ... 176
5.2.3 Connected navigation faces competition from free smartphone apps . 177
5.2.4 Cloud-based systems facilitate delivery of connected infotainment services .. 178
5.2.5 Remote control features become standard .. 179
5.2.6 CRM solutions and vehicle diagnostics enable improved customer care 179
5.2.7 Usage-based insurance to remain an aftermarket service in most countries .. 180
5.2.8 Privacy concerns may block satellite tracking systems for road charging ... 180
5.2.9 Wi-Fi hotspots enable convenient connectivity for passengers ... 181
5.3 Value chain analysis 181
5.3.1 Automotive suppliers . 182
5.3.2 Telematics service providers . 182
5.3.3 Car manufacturers . 184
5.3.4 Telecom industry players .. 185
5.3.5 Software, application and content suppliers . 187
Glossary .. 189

List of Figures
Figure 1.1: Car parc by region (World 2007-2013) 5
Figure 1.2: Passenger car parc density by region (World 2013) 6
Figure 1.3: New car registration data (World 2007-2014) .. 7
Figure 1.4: Top 10 countries by new passenger car and light truck registrations (2014) .. 8
Figure 1.5: Top 20 passenger car manufacturers by revenues (World 2014) .. 10
Figure 1.6: Passenger car registrations by manufacturer (EU28+EFTA 2014) ... 11
Figure 1.7: Passenger car registrations by manufacturer (North America 2014) . 12
Figure 1.8: Passenger car registrations by manufacturer (Japan 2014) .. 15
Figure 1.9: Passenger car registrations by manufacturer (China 2014) ... 16
Figure 1.10: Telematics subscribers by carmaker (World 2013-2014) 19
Figure 1.11: Car OEM telematics availability in North America (September 2015) .. 21
Figure 1.12: Car OEM telematics availability in the EU (September 2015) .. 23
Figure 1.13: Car OEM telematics availability in Asia-Pacific (September 2015) .. 24
Figure 1.14: Top selling highway capable all-electric cars (World 2015) . 34
Figure 1.15: Registered highway capable BEVs and PHEVs (World 2014) . 35
Figure 1.16: Car sharing and mobility service companies (World Q4-2014) ... 39
Figure 2.1: eCall application lifecycle ... 49
Figure 2.2: SVT application lifecycle . 50
Figure 2.3: Motor insurance telematics application lifecycle 51
Figure 2.4: Vehicle diagnostics application lifecycle 53
Figure 2.5: Leasing and rental fleet management application lifecycle ... 53
Figure 2.6: Electronic toll collection application lifecycle . 54
Figure 2.7: Convenience services and remote control application lifecycle 55
Figure 2.8: Connected navigation application lifecycle 57
Figure 2.9: Connectivity options ... 58
Figure 3.1: Connected car services by car brand (Europe September 2015) . 64
Figure 3.2: Connected car services by car brand (North America September 2015) .. 65
Figure 3.3: Connected car services by car brand (China and Japan September 2015) . 66
INDEX THE GLOBAL AUTOMOTIVE OEM TELEMATICS MARKET
viii STRATEGIC RESEARCH SERIES M2M RESEARCH SERIES
Figure 3.4: BMW ConnectedDrive services and prices (USA and Europe 2015) 70
Figure 3.5: Mercedes-Benz Mbrace services and price plans (USA 2015) .. 77
Figure 3.6: Chrysler Uconnect Access services and prices (USA 2015) .. 82
Figure 3.7: Ford SYNC features and services (2015) ... 85
Figure 3.8: GM OnStar services and price plans (North America 2015) .. 91
Figure 3.9: GM OnStar LTE Wi-Fi hotspot data plan prices (USA 2015) .. 92
Figure 3.10: AcuraLink services and price plans (North America 2015) .. 98
Figure 3.11: Hyundai Blue Link services and price plans (USA 2015) ... 103
Figure 3.12: Jaguar Land Rover InControl services (Europe 2015) ... 107
Figure 3.13: Infiniti Connection services and price plans (USA 2015) ... 113
Figure 3.14: NissanConnect Services subscription packages (USA 2015) ... 115
Figure 3.15: Subaru STARLINK telematics service packages (USA 2015) 124
Figure 3.16: Toyota and Lexus telematics systems (2015) .... 129
Figure 3.17: Lexus Enform services and prices (USA 2015) .. 131
Figure 3.18: Porsche Car Connect services and price plans (Europe 2015) . 138
Figure 3.19: VW Car-Net services and price plans (USA 2015) . 140
Figure 4.1: M2M communication and managed service providers (Q3-2015) ... 152
Figure 5.1: New car sales, by region (World 2013-2020) ... 163
Figure 5.2: Telematics shipments and active subscribers (EU28+EFTA 2013-2020) ... 164
Figure 5.3: Telematics shipments and active subscribers (Eastern Europe 2013-2020) .. 165
Figure 5.4: Telematics shipments and active subscribers (North America 2013-2020) 166
Figure 5.5: Telematics shipments and active subscribers (Latin America 2013-2020) . 168
Figure 5.6: Telematics shipments and active subscribers (Asia-Pacific 2013-2020) . 169
Figure 5.7: Telematics shipments and active subscribers (MEA 2013-2020) 171
Figure 5.8: Telematics hardware and service revenues (World 2013-2020) . 171
Figure 5.9: Telematics hardware and service revenues (EU28+EFTA 2013-2020) .. 172
Figure 5.10: Telematics hardware and service revenues (North America 2013-2020) .. 173
Figure 5.11: Telematics hardware and service revenues (ROW 2013-2020) 174
Figure 5.12: Shipments of cellular data modems for embedded TCUs (World 2013-2020) . 175
Figure 5.13: SIM-cards managed by service providers by region (World 2013-2020) .. 186

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