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The Global Automotive OEM Telematics Market – 3rd Edition

  • December 2016
  • -
  • Berg Insight AB
  • -
  • 210 pages

The Global Automotive OEM Telematics Market is the third consecutive report from Berg Insight analysing the latest developments on the connected car market worldwide.

This strategic research report from Berg Insight provides you with 210 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.


Highlights from this report:
- Insights from numerous executive interviews with market leading companies.
- New data on car populations and new car registrations worldwide.
- In-depth analysis of market trends and key developments.
- Detailed profiles of 17 major car OEMs and their telematics propositions.
- Updated market forecasts by region lasting until 2021.


This report answers the following questions:
- What is the current status of the car OEM telematics industry?
- Which are the key OEM telematics applications?
- Which are the leading telematics service providers?
- How are mobile operators positioning themselves in the telematics value chain?
- What telematics offerings are available from the leading car OEMs today?
- What business models are used by car OEMs?
- How will the market evolve in Europe, North America, Latin
- America, Asia-Pacific and MEA?
- How will autonomous cars, electric vehicles and carsharing change the need for connectivity?


Who should buy this report?
The Global Automotive OEM Telematics Market is the foremost source of information about the rapid adoption of car telematics. Whether you are a car manufacturer, telematics service provider, telecom operator, content provider, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.


The installed base of embedded OEM telematics systems to reach 170 million units in 2020

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.

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. The proposed CONTRAN 245 mandate in Brazil to install security tracking devices on all new vehicles was however suspended in October 2015 after repeated delays. 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 18 percent of all new cars sold worldwide in 2015 were equipped with an OEM embedded telematics system, up from 15 percent in 2014. North America is the most advanced market with an attach rate of 37 percent followed by EU+EFTA with an attach rate of close to 20 percent. Other developed markets such as Japan and South Korea currently have attach rates of approximately 17 percent.

China has emerged as an important market for telematics services with an attach rate of about 10 percent in 2015. In other regions, the attach rate is below 10 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. In August 2015, GM also launched the OnStar service throughout Europe. BMW introduced its ConnectedDrive service in North America and Western Europe in 1997. An embedded telematics unit has since become a standard feature on all BMW vehicles sold in the 43 markets where ConnectedDrive is available. Other major car brands offering embedded telematics on a broad scale include PSA, Hyundai, FCA Group, Toyota, Renault, Volvo and Tesla.

Berg Insight estimates that total shipments of embedded OEM telematics systems reached 14 million units worldwide in 2015. Growing at a compound annual growth rate of 25.1 percent, the shipments are expected to reach 53 million units in 2021. The number of telematics subscribers using embedded systems is forecasted to grow at a compound annual growth rate of 36.4 percent from 26.5 million subscribers in 2015 to 170.2 million in 2021.

Table Of Contents

The Global Automotive OEM Telematics Market - 3rd Edition
Table of Contents
Table of Contents i
List of Figures vii
Executive summary 1
1 The global passenger car market 1
1.1 Introduction 1
1.1.1 Passenger cars in use by region 2
1.1.2 New passenger car registration trends 4
1.2 Car manufacturers 7
1.2.1 Toyota Motor Corporation 7
1.2.2 Volkswagen Group 7
1.2.3 General Motors 7
1.2.4 Renault-Nissan Alliance 11
1.2.5 Ford Motor Company 11
1.2.6 Fiat Chrysler Automobiles 14
1.2.7 BMW Group 14
1.2.8 Daimler Group 14
1.2.9 Honda Motor 15
1.2.10 Hyundai Motor Group 15
1.3 Overview of car OEM telematics services 15
1.3.1 Embedded and hybrid telematics systems 16
1.3.2 Car OEM telematics services in North America 18
1.3.3 Car OEM telematics services in Europe 20
1.3.4 Car OEM telematics services in Asia-Pacific 22
1.3.5 Business models 23
1.4 Regulatory compliance 25
1.4.1 Vehicle security, safety and emergency call regulations 25
1.4.2 Vehicle emissions 27
1.5 Market trends 30
1.5.1 Hybrid electric, plug-in hybrid electric and all-electric vehicles 30
1.5.2 Car sharing and personal transportation as a service 36
1.5.3 ADAS and autonomous driving technologies 41
1.5.4 Vehicle-to-Everything (V2X) communication 43
2 Car telematics solutions 45
2.1 Car telematics infrastructure 45
2.1.1 Vehicle segment 46
2.1.2 Tracking segment 46
2.1.3 Network segment 47
2.1.4 Service segment 50
2.2 Car telematics applications 51
2.2.1 eCall and roadside assistance 51
2.2.2 Stolen vehicle tracking 52
2.2.3 Motor insurance telematics 54
2.2.4 Vehicle diagnostics and maintenance 55
2.2.5 Leasing and rental fleet management 56
2.2.6 Electronic toll collection and congestion charging 57
2.2.7 Remote control and convenience services 58
2.2.8 Connected navigation and infotainment 59
2.2.9 Wi-Fi hotspot 60
2.3 Connectivity options 61
2.3.1 Tethered devices 62
2.3.2 Integrated smartphone solutions 62
2.3.3 Embedded connectivity solutions 63
2.3.4 SIM solutions and embedded UICC 64
3 OEM telematics propositions 67
3.1 BMW 68
3.1.1 Overview of BMW group passenger car models 68
3.1.2 BMW ConnectedDrive infotainment and mobility services 69
3.1.3 The MINI Connected smartphone integration system 73
3.2 Daimler Group 74
3.2.1 Overview of Mercedes-Benz passenger car models 75
3.2.2 Overview of Mercedes-Benz telematics services 75
3.2.3 The COMAND Online infotainment system 76
3.2.4 Mercedes Me services in Europe and China 77
3.2.5 Mbrace: Mercedes-Benz' connected service platform in the US 78
3.3 Fiat Chrysler Automobiles 80
3.3.1 Overview of Fiat Chrysler Automobiles passenger car models 81
3.3.2 The Uconnect infotainment systems 82
3.3.3 Uconnect Access connected services 84
3.4 Ford Motor Company 86
3.4.1 Overview of Ford passenger car models 87
3.4.2 The Ford SYNC infotainment system 88
3.4.3 Ford SYNC Connect 89
3.4.4 Ford SYNC connected services 90
3.5 General Motors 92
3.5.1 Overview of the main GM passenger car brands 92
3.5.2 GM OnStar telematics services 94
3.5.3 Connected infotainment systems and apps 98
3.6 Honda Motor Company 99
3.6.1 Overview of Honda and Acura passenger car models 100
3.6.2 Overview of Honda and Acura telematics solutions 100
3.6.3 The HondaLink in-car connectivity system 101
3.6.4 The AcuraLink connected car systems and services 102
3.7 Hyundai Motor Group 104
3.7.1 Overview of Hyundai and Kia passenger car models 105
3.7.2 Overview of the Hyundai Motor Group's telematics solutions 106
3.7.3 The Hyundai Blue Link telematics service in the US 107
3.7.4 The Kia UVO infotainment system and UVO telematics services 109
3.8 Jaguar Land Rover Automotive 110
3.8.1 Overview of Jaguar Land Rover passenger car models 111
3.8.2 Jaguar Land Rover InControl telematics services 111
3.9 Mazda Motor Corporation 115
3.9.1 Overview of Mazda passenger car models 115
3.9.2 The Mazda Connect infotainment system 116
3.9.3 Mazda Mobile Start 117
3.10 Nissan Motor Company 117
3.10.1 Overview of Nissan and Infiniti passenger car models 118
3.10.2 Nissan and Infiniti connected car services 119
3.10.3 NissanConnect Services 119
3.10.4 Infiniti Connection 121
3.10.5 NissanConnect and Infiniti InTouch infotainment systems 123
3.11 PSA Group 124
3.11.1 Overview of Peugeot and Citroën passenger car models 125
3.11.2 PSA Group telematics services 125
3.12 Renault Group 127
3.12.1 Overview of Renault and Dacia passenger car models 128
3.12.2 Renault R-Link 128
3.13 Subaru 129
3.13.1 Overview of Subaru passenger car models 130
3.13.2 The Subaru STARLINK infotainment and smartphone connectivity system 130
3.13.3 G-BOOK telematics services in Japan 131
3.14 Tesla Motors 132
3.14.1 Overview of Tesla passenger car models 133
3.14.2 Tesla telematics and infotainment services 133
3.15 Toyota Motor Corporation 134
3.15.1 Overview of Toyota and Lexus passenger car models 135
3.15.2 Overview of Toyota and Lexus telematics services 135
3.15.3 New T-Connect and G-LINK telematics services for the Japanese market 137
3.15.4 Entune/Enform and Safety Connect telematics services in North America 137
3.15.5 The Toyota T-Connect telematics services in the Middle East 139
3.15.6 Toyota and Lexus connected infotainment systems in Europe 140
3.16 Volkswagen Group 141
3.16.1 Overview of Volkswagen Group passenger car brands and models 142
3.16.2 The Audi Connect telematics service 144
3.16.3 The Porsche Car Connect telematics service 146
3.16.4 The Volkswagen Car-Net telematics services 148
3.17 Volvo Car Group 151
3.17.1 Overview of Volvo passenger car models 152
3.17.2 The Volvo On Call telematics service 152
3.17.3 The Volvo Sensus Connect infotainment system 154
3.17.4 Volvo In-car Delivery and Concierge Services 154
4 Telematics solution providers 157
4.1 Telematics service providers 157
4.1.1 Airbiquity 158
4.1.2 Aeris 159
4.1.3 Beijing Yesway Information Technology 160
4.1.4 Connexis 161
4.1.5 Nuance Communications 161
4.1.6 Octo Telematics 162
4.1.7 PATEO 163
4.1.8 SiriusXM Connected Vehicle Services 164
4.1.9 WirelessCar 165
4.2 Mobile operators 167
4.2.1 ATandT 168
4.2.2 Deutsche Telekom 171
4.2.3 Sprint 172
4.2.4 Telefónica Group 174
4.2.5 Verizon Communications and Verizon Telematics 175
4.2.6 Vodafone and Vodafone Automotive 177
5 Market forecasts and trends 181
5.1 Car telematics market forecasts 181
5.1.1 Car sales forecast 181
5.1.2 Car telematics forecast 182
5.1.3 Car telematics in the EU28+EFTA and Eastern Europe 183
5.1.4 Car telematics in North America 185
5.1.5 Car telematics in Latin America 186
5.1.6 Car telematics in Asia-Pacific 187
5.1.7 Car telematics in the Middle East and Africa 189
5.1.8 Hardware and service revenue forecast 190
5.1.9 Data modem chipset shipments by technology 194
5.2 Application trends 194
5.2.1 Mass market safety services driven by regional mandates 195
5.2.2 OEM SVT services compete with aftermarket services in many countries 196
5.2.3 Connected navigation faces competition from free smartphone apps 196
5.2.4 Handset based infotainment services complements embedded solutions 197
5.2.5 Remote control features become standard 198
5.2.6 CRM solutions and vehicle diagnostics enable improved customer care 198
5.2.7 Usage-based insurance to remain an aftermarket service in most countries 199
5.2.8 Privacy concerns may block satellite tracking systems for road charging 200
5.2.9 Wi-Fi hotspots enable convenient connectivity for passengers 200
5.2.10 Over-the Air (OTA) updates reduce recall expenses 201
5.2.11 Call centre convenience services become less common 201
5.2.12 Concierge services change form to services delivered to the vehicle 202
5.2.13 Apple CarPlay and Android Auto drives uptake of smartphone integration 202
5.3 Value chain analysis 203
5.3.1 Automotive suppliers 204
5.3.2 Telematics service providers 204
5.3.3 Car manufacturers 205
5.3.4 Telecom industry players 207
5.3.5 Software, application and content suppliers 208
5.4 Mergers and acquisitions 209
Glossary 213


List of Figures
Figure 1.1: Car parc by region (World 2008-2014) 3
Figure 1.2: Passenger car parc density by region (World 2015) 4
Figure 1.3: New car registration data (World 2008-2015) 5
Figure 1.4: Top 10 countries by new passenger car and light truck registration (2015) 6
Figure 1.5: Top 20 passenger car manufacturers by revenues (World 2015) 8
Figure 1.6: Passenger car registrations by manufacturer (EU28+EFTA 2015) 9
Figure 1.7: Passenger car registrations by manufacturer (North America 2015) 10
Figure 1.8: Passenger car registrations by manufacturer (Japan 2015) 12
Figure 1.9: Passenger car registrations by manufacturer (China 2014) 13
Figure 1.10: Telematics subscribers by carmaker (World 2014-2015) 17
Figure 1.11: Car OEM telematics availability in North America (September 2016) 19
Figure 1.12: Car OEM telematics availability in the EU (December 2016) 21
Figure 1.13: Car OEM telematics availability in Asia-Pacific (December 2016) 23
Figure 1.14: CO2 limit value curve for passenger cars sold in the EU during 2020 29
Figure 1.15: Top selling highway capable all-electric cars (World 2015) 33
Figure 1.16: Registered highway capable BEVs and PHEVs (World 2015) 34
Figure 1.17: New registrations of highway capable BEVs and PHEVs (World 2015) 35
Figure 1.18: Car sharing and mobility service companies (World Q4-2015) 39
Figure 2.1: Cost comparison for 2G, 3G and 4G modules (2016) 48
Figure 2.2: eCall application lifecycle 52
Figure 2.3: SVT application lifecycle 53
Figure 2.4: Motor insurance telematics application lifecycle 54
Figure 2.5: Vehicle diagnostics application lifecycle 56
Figure 2.6: Leasing and rental fleet management application lifecycle 56
Figure 2.7: Electronic toll collection application lifecycle 57
Figure 2.8: Convenience services and remote control application lifecycle 58
Figure 2.9: Connected navigation application lifecycle 60
Figure 2.10: Connectivity options 61
Figure 2.11: Comparison of SIM form factors 65
Figure 3.1: BMW ConnectedDrive services and prices (USA 2016) 71
Figure 3.2: BMW ConnectedDrive packages and prices (China 2016) 73
Figure 3.3: Mercedes-Benz Mbrace services and price plans (USA 2016) 79
Figure 3.4: Uconnect Access services and prices (USA 2016) 85
Figure 3.5: Ford SYNC features and services (2016) 89
Figure 3.6: GM OnStar services and price plans (North America 2016) 96
Figure 3.7: GM OnStar LTE Wi-Fi hotspot data plan prices (USA 2015-2016) 97
Figure 3.8: AcuraLink services and price plans (North America 2016) 103
Figure 3.9: Hyundai Blue Link services and price plans (USA 2016) 108
Figure 3.10: Jaguar Land Rover InControl services (Europe 2016) 113
Figure 3.11: NissanConnect Services subscription packages (USA 2016) 120
Figure 3.12: Infiniti Connection and Infiniti Intouch services (USA 2016) 122
Figure 3.13: Subaru STARLINK telematics service packages (USA 2016) 131
Figure 3.14: Toyota and Lexus telematics systems (2016) 136
Figure 3.15: Lexus Enform services and prices (USA 2016) 139
Figure 3.16: Audi North America Q7 and A4 services and price plans (2016) 145
Figure 3.17: Porsche Car Connect services and price plans (2016) 147
Figure 3.18: VW Car-Net Security and Service (USA 2016) 149
Figure 4.1: M2M communication and managed service providers (Q3-2016) 168
Figure 5.1: New car sales, by region (World 2014-2021) 181
Figure 5.2: Telematics shipments and active subscribers (World 2014-2021) 182
Figure 5.3: Telematics shipments and active subscribers (EU28+EFTA 2014-2021) 183
Figure 5.4: Telematics shipments and active subscribers (Eastern Europe 2014-2021) 184
Figure 5.5: Telematics shipments and active subscribers (North America 2014-2021) 185
Figure 5.6: Telematics shipments and active subscribers (Latin America 2014-2021) 187
Figure 5.7: Telematics shipments and active subscribers (Asia-Pacific 2014-2021) 188
Figure 5.8: Telematics shipments and active subscribers (MEA 2014-2021) 189
Figure 5.9: Telematics hardware and service revenues (World 2014-2021) 190
Figure 5.10: Telematics hardware and service revenues (EU28+EFTA 2014-2021) 191
Figure 5.11: Telematics hardware and service revenues (North America 2014-2021) 192
Figure 5.12: Telematics hardware and service revenues (ROW 2014-2021) 193
Figure 5.13: Shipments of cellular data modems for embedded TCUs (World 2014-2021) 194
Figure 5.14: SIM-cards managed by service providers by region (World 2014-2021) 208
Figure 5.15: Mergers and acquisitions in the connected car space (2012-2017) 210

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