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.
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