Aftermarket Car Telematics

Aftermarket Car Telematics

Aftermarket Car Telematics is the first strategy report from Berg Insight analysing the latest developments on the market for applications such as stolen vehicle tracking (SVT), vehicle diagnostics, Wi-Fi hotspot, roadside assistance and convenience applications targeting consumers.

This strategic research report from Berg Insight provides you with 170 pages of unique business intelligence including 5-yearindustry forecasts and expert commentary on which to base your business decisions.

Highlights from this report:

Insights from 30 new executive interviews with market leading companies.
Comprehensive overview of the aftermarket car telematics value chain and key applications.
In-depth analysis of market trends and key developments.
New profiles of 70 aftermarket car telematics solution providers.
Summary of the involvement of vehicle OEMs and mobile operators.
New data on car populations and new car registrations worldwide.
Market forecasts by region lasting until 2023.

This report answers the following questions:

What types of aftermarket car telematics products are offered on the market?
Which are the leading providers of car telematics technology?
What business models are available for players entering the car telematics space?
Which are the dominant technology form factors?
How will the market evolve in Europe, North America, Latin America, Asia-Pacific and MEA?
How are mobile operators approaching the aftermarket car telematics market?
Will car OEM telematics solutions outcompete aftermarket car telematics in the long term?
Which are the major drivers and barriers for car telematics adoption?
Which are the key future trends in this industry?

Executive summary

Telematics is a broad term that may be applied to a wide range of automotive connectivity solutions. Berg Insight’s definition of an aftermarket car telematics solution in this report includes telematics devices created by a company other than the carmakers and are retrofitted into vehicles mainly via OBD-II and blackbox devices based on both cellular/GNSS and RF technology. The connected car is a major trend in the automotive industry. After many years of development and false starts, car telematics has gained momentum and virtually all of the world’s leading carmakers have launched mass-market services in key regions. The OEM initiatives can be seen as competition for the aftermarket solutions, but there is still a growing demand for different forms of aftermarket car telematics services. After market telematics still has a dominant position on the market in many parts of the world. Several categories of aftermarket car telematics applications have become popular including roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, usage-based insurance, dealer and inventory management, Wi-Fi hotspot as well as convenience applications targeting consumers.

The addressable market for aftermarket car telematics solutions is significant. At the end of2018, there were an estimated 1.12 billion passenger cars and light trucks registered worldwide. Even though aftermarket car telematics services face competition from smartphone-only solutions and OEM solutions, Berg Insight is of the opinion that the aftermarket car telematics market is in a phase of strong growth. Berg Insight estimates that total shipments of aftermarket car telematics systems reached almost 20.3 million units worldwide in 2018. Growing at a compound annual growth rate of 20.2 percent, the shipments are expected to reach 51.0 million units in 2023. The number of aftermarket car telematics systems in active use is forecasted to grow at a compound annual growth rate of20.6 percent from 58.7 million in 2018 to 150.0 million worldwide in 2023. The penetration rate will at the same time grow from 5.0 percent in 2018 to 12.0 percent at the end of the forecast period.

The market is still in a relatively early phase with a great diversity of players interacting in a complex value chain that spans multiple industries. The car telematics companies targeting the consumer aftermarket include specialists focusing on this application area only as well as general telematics players that serve a broad range of applications including also for example fleet management for commercial vehicles. The leading aftermarket car telematics solution providers have reached installed bases in the millions. Examples of leading car telematics solution vendors include Octo Telematics, Spireon, Ituran, Mojio, Scope Technology, CalAmp(LoJack), Bright Box, Vias at Group and Vodafone Automotive. The most common go-to market strategy include partnering with insurance companies, dealers, OEMs, MNOs and vehicle finance companies. Leading companies delivering telematics hardware and related services to the car telematics market include Danlaw, Xirgo Technologies, Gosuncn, MobileDevices, Queclink and Teltonika.

Stolen vehicle recovery and security-related telematics applications are mature aftermarket car telematics applications whereas other direct-to-consumer car telematics solutions have more recently started to emerge. Regional market conditions such as a high level of vehicle crime influence the demand for stolen vehicle tracking and have made SVT solutions popular in countries such as Brazil, Argentina, China, Israel, Russia and South Africa. Leading SVT companies include CalAmp (LoJack), Cesar Satellite, Ituran, Octo Telematics, TrackerConnect, Netstar and Pointer Telocation. The number of dedicated active aftermarket SVTunits in use is forecasted to reach 51.2 million in 2023, up from 33.3 million at year-end 2018.The SVT market is anticipated to be influenced in the long term by the introduction of OEMtelematics that in many cases will include this functionality.

During the past years, several mobile operators have launched car telematics solutions as apart of a broader consumer IoT strategy. Deutsche Telekom has for instance partnered with Mojio to launch branded connected car services in various markets. Verizon, AT&T, Sprint, Vodafone, Telefónica and many others have also explored the car telematics vertical during the past few years. Direct-to-consumer car telematics offerings are available to a varying degree in many regions globally by companies such as Zubie, Automatic labs (SiriusXM),Vyncs (Agnik) and Autobrain. Many direct-to-consumer car telematics providers have broadened their product portfolios to include additional telematics application areas such as fleet management as well as powering B2B2C telematics services.

 


Executive summary

Telematics is a broad term that may be applied to a wide range of automotive connectivitysolutions. Berg Insight’s definition of an aftermarket car telematics solution in this reportincludes telematics devices created by a company other than the carmakers and areretrofitted into vehicles mainly via OBD-II and blackbox devices based on both cellular/GNSSand RF technology. The connected car is a major trend in the automotive industry. After manyyears of development and false starts, car telematics has gained momentum and virtually allof the world’s leading carmakers have launched mass-market services in key regions. TheOEM initiatives can be seen as competition for the aftermarket solutions, but there is still agrowing demand for different forms of aftermarket car telematics services. Aftermarkettelematics still has a dominant position on the market in many parts of the world. Severalcategories of aftermarket car telematics applications have become popular includingroadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, usage-basedinsurance, dealer and inventory management, Wi-Fi hotspot as well as convenienceapplications targeting consumers.

The addressable market for aftermarket car telematics solutions is significant. At the end of2018, there were an estimated 1.12 billion passenger cars and light trucks registeredworldwide. Even though aftermarket car telematics services face competition fromsmartphone-only solutions and OEM solutions, Berg Insight is of the opinion that theaftermarket car telematics market is in a phase of strong growth. Berg Insight estimates thattotal shipments of aftermarket car telematics systems reached almost 20.3 million unitsworldwide in 2018. Growing at a compound annual growth rate of 20.2 percent, theshipments are expected to reach 51.0 million units in 2023. The number of aftermarket cartelematics systems in active use is forecasted to grow at a compound annual growth rate of20.6 percent from 58.7 million in 2018 to 150.0 million worldwide in 2023. The penetration ratewill at the same time grow from 5.0 percent in 2018 to 12.0 percent at the end of the forecastperiod.

The market is still in a relatively early phase with a great diversity of players interacting in acomplex value chain that spans multiple industries. The car telematics companies targetingthe consumer aftermarket include specialists focusing on this application area only as well asgeneral telematics players that serve a broad range of applications including also for examplefleet management for commercial vehicles. The leading aftermarket car telematics solutionproviders have reached installed bases in the millions. Examples of leading car telematicssolution vendors include Octo Telematics, Spireon, Ituran, Mojio, Scope Technology, CalAmp(LoJack), Bright Box, Viasat Group and Vodafone Automotive. The most common go-tomarketstrategy include partnering with insurance companies, dealers, OEMs, MNOs andvehicle finance companies. Leading companies delivering telematics hardware and relatedservices to the car telematics market include Danlaw, Xirgo Technologies, Gosuncn, MobileDevices, Queclink and Teltonika.

Stolen vehicle recovery and security-related telematics applications are mature aftermarketcar telematics applications whereas other direct-to-consumer car telematics solutions havemore recently started to emerge. Regional market conditions such as a high level of vehiclecrime influence the demand for stolen vehicle tracking and have made SVT solutions popularin countries such as Brazil, Argentina, China, Israel, Russia and South Africa. Leading SVTcompanies include CalAmp (LoJack), Cesar Satellite, Ituran, Octo Telematics, TrackerConnect, Netstar and Pointer Telocation. The number of dedicated active aftermarket SVTunits in use is forecasted to reach 51.2 million in 2023, up from 33.3 million at year-end 2018.The SVT market is anticipated to be influenced in the long term by the introduction of OEMtelematics that in many cases will include this functionality.

During the past years, several mobile operators have launched car telematics solutions as apart of a broader consumer IoT strategy. Deutsche Telekom has for instance partnered withMojio to launch branded connected car services in various markets. Verizon, AT&T, Sprint,Vodafone, Telefónica and many others have also explored the car telematics vertical duringthe past few years. Direct-to-consumer car telematics offerings are available to a varyingdegree in many regions globally by companies such as Zubie, Automatic labs (SiriusXM),Vyncs (Agnik) and Autobrain. Many direct-to-consumer car telematics providers havebroadened their product portfolios to include additional telematics application areas such asfleet management as well as powering B2B2C telematics services.

Executive summary
1 The global passenger car market
1.1 Introduction
1.1.1 Passenger cars in use by region
1.1.2 New passenger car registration trends
1.1.3 Hybrid electric, plug-in hybrid electric and all-electric vehicles
1.2 Overview of aftermarket car telematics services
1.2.1 Aftermarket car telematics services in Europe
1.2.2 Aftermarket car telematics services in the Americas
1.2.3 Aftermarket car telematics services in ROW
1.3 Regulatory compliance
1.3.1 Vehicle security, safety and emergency call regulations
1.3.2 The eCall and ERA-GLONASS initiatives
1.3.3 Insurance industry standards for vehicle tracking
1.4 Vehicle crime
2 Car telematics solutions
2.1 Aftermarket telematics infrastructure
2.1.1 Vehicle segment
2.1.2 Tracking segment
2.1.3 Network segment
2.1.4 Service segment
2.2 Aftermarket car telematics applications
2.2.1 eCall and roadside assistance
2.2.2 Stolen vehicle tracking
2.2.3 Motor insurance telematics
2.2.4 Dealer lot management
2.2.5 Vehicle finance telematics
2.2.6 Remote control and convenience services
2.2.7 Vehicle diagnostics and maintenance
2.2.8 Electronic toll collection and congestion charging
2.2.9 Wi-Fi hotspot
2.2.10 Vehicle emission monitoring
2.3 Business models
3 Market forecasts and trends
3.1 Aftermarket car telematics market sizing
3.1.1 Aftermarket car telematics in Europe
3.1.2 Aftermarket car telematics in the Americas
3.1.3 Aftermarket car telematics in ROW
3.1.4 Vendor market shares
3.2 Value chain analysis
3.2.1 Automotive industry players
3.2.2 Telematics industry players
3.2.3 Telecom industry players
3.2.4 IT industry players
3.3 Market drivers and barriers
3.3.1 Macroeconomic environment
3.3.2 Regulatory environment
3.3.3 Competitive environment
3.3.4 Technology environment
3.4 Market trends and conclusions
3.4.1 Continued broadening of the aftermarket car telematics concept is expected .. 75
3.4.2 Privacy concerns are softening
3.4.3 Aftermarket SVT/SVR services compete with OEM services in many countries 76
3.4.4 Usage-based insurance to remain an aftermarket service in most countries
3.4.5 CRM solutions and vehicle diagnostics enable improved customer care
3.4.6 Wi-Fi hotspots enable convenient connectivity for passengers
3.4.7 Car telematics service providers to use a wide ecosystem of partners
3.4.8 Consumer telematics can potentially increase MNO IoT revenues
4 International car telematics solution providers
4.1 Bright Box
4.2 CalAmp (LoJack)
4.3 Harman Connected Services
4.4 Ituran
4.5 Mojio
4.6 Octo Telematics
4.7 Pointer Telocation
4.8 Teletrac Navman Automotive
4.9 Verizon
4.10 Viasat Group
4.11 Vodafone and Vodafone Automotive
5 Company profiles and strategies
5.1 Providers of SVT/SVR and related services
5.1.1 Autoconnex
5.1.2 Autolocator
5.1.3 Cesar Satellite
5.1.4 StarLine
5.1.5 Secar Bohemia
5.1.6 Traqueur
5.1.7 BrickHouse Security
5.1.8 Certified Tracking Solutions
5.1.9 Guidepoint Systems
5.1.10 IMETRIK Global
5.1.11 MasTrack
5.1.12 PassTime GPS
5.1.13 Spireon
5.1.14 Autotrac
5.1.15 OMNILINK (Graber)
5.1.16 Pósitron (Stonderidge)
5.1.17 Katsana
5.1.18 TPL Trakker
5.1.19 ACM Track
5.1.20 Bidtrack (Bidvest Group)
5.1.21 Cartrack
5.1.22 Digit Vehicle Tracking (Digicell)
5.1.23 MiX Telematics
5.1.24 Netstar
5.1.25 Tracker Connect
5.2 Specialist consumer telematics solution providers
5.2.1 Air
5.2.2 Grupo Next
5.2.3 Protectus Technologies (CarLock)
5.2.4 Springworks International
5.2.5 Tantalum Corporation
5.2.6 Thinxnet (ryd)
5.2.7 TomTom Telematics
5.2.8 AccuTracking
5.2.9 Agilis Systems (MOTOsafety)
5.2.10 Autobrain
5.2.11 Automatic Labs (SiriusXM)
5.2.12 Autonet Mobile
5.2.13 Dash Labs
5.2.14 Agnik (Vyncs)
5.2.15 Tail Light (Bouncie)
5.2.16 Modus
5.2.17 Zubie
5.2.18 Comodif
5.2.19 PATEO
5.2.20 Minda iConnect (Carot India)
5.2.21 Scope Technology
5.2.22 SenSight Technologies (AutoWiz)
5.3 Technology vendors
5.3.1 Danlaw
5.3.2 Gosuncn WeLink
5.3.3 Meitrack
5.3.4 Meta System
5.3.5 Mobile Devices
5.3.6 PFK Electronics
5.3.7 Queclink Wireless Solutions
5.3.8 Redtail Telematics
5.3.9 Sinocastel
5.3.10 Teltonika
5.3.11 ThinkRace
5.3.12 Xirgo Technologies
Glossary
Index
List of Figures
Figure 1.1: Car parc by region (World 2009–2017)
Figure 1.2: Passenger car density per 1,000 inhabitants (EU28 2017)
Figure 1.3: New car registration data (World 2011–2018)
Figure 1.4: Top 10 countries by new passenger car and light truck registrations (2018)
Figure 1.5: Passenger car registrations by manufacturer (EU28+EFTA 2018)
Figure 1.6: Passenger car registrations by manufacturer (North America 2018)
Figure 1.7: Passenger car registrations by manufacturer (China 2018)
Figure 1.8: Registered highway capable BEVs and PHEVs (World 2018)
Figure 1.9: New registrations of highway capable BEVs and PHEVs (World 2018)
Figure 2.1: eCall application lifecycle
Figure 2.2: SVT application lifecycle
Figure 2.3: Motor insurance telematics application lifecycle
Figure 2.4: Electronic toll collection application lifecycle
Figure 3.1: Device shipments and active systems in use (World 2018–2023)
Figure 3.2: Device shipments and active systems in use (EU28+EFTA 2018–2023)
Figure 3.3: Device shipments and active systems in use (E. Europe 2018–2023)
Figure 3.4: Device shipments and active systems in use (North America 2018–2023)
Figure 3.5: Device shipments and active systems in use (Latin America 2018–2023)
Figure 3.6: Device shipments and active systems in use (APAC 2018–2023)
Figure 3.7: Device shipments and active systems in use (MEA 2018–2023)
Figure 3.8: Major aftermarket car telematics vendors (World Q4-2018)
Figure 3.9: Major specialised SVT/SVR telematics vendors (World Q4-2018)
Figure 3.10: Mercedes Me adapter availability (Q1-2019)
Figure 3.11: Examples of hardware vendors serving the car telematics market
Figure 3.12: The T-Mobile Sync-UP DRIVE app
Figure 3.13: MNO consumer car telematics offerings (Q4-2018)
Figure 3.14: M2M communications and managed service providers (Q4-2018)
Figure 4.1: The Remoto web portal
Figure 4.2: The HARMAN Spark app
Figure 4.3: Mojio app templates
Figure 4.4: GLOBALWATCH coverage by Teletrac Navman Automotive
Figure 4.5: Verizon Hum products
Figure 4.6: The V-Auto OBD-II dongle
Figure 5.1: The StarLine M18 telematics device
Figure 5.2: The Kahu app
Figure 5.3: Overview of Cartrack’s subscriber base by application and region (FY-2019)
Figure 5.4: Matrix subscription packages (South Africa 2019)
Figure 5.5: Tracker Connect subscription packages (South Africa 2019)
Figure 5.6: The CarLock web app
Figure 5.7: Telia Sense OBD device sourced from ZTE
Figure 5.8: The Automatic CCA product with accompanying app
Figure 5.9: Autonet Mobile hardware
Figure 5.10: DataLogger OBD-II Devices (Q2-2019)
Figure 5.11: Sinocastel OBD devices
Figure 5.12: AmberOBD mobile and web apps
Figure 5.13: Xirgo’s XT 2400 Series

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