The Global Automotive OEM Telematics Market – 3rd Edition

The Global Automotive OEM Telematics Market – 3rd Edition

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.
Comprehensive overview of the car OEM telematics value chain and key applications.
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?

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.

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.

About the Authors

Jonas Wennermark is an IoT/M2M Analyst with a Master’s degree in Physics from the University of Manchester. He joined Berg Insight in 2016 and his areas of expertise include automotive telematics, insurance telematics, UBI and IoT terminals.

Johan Fagerberg is co-founder and an experienced analyst with a Master’s degree in Electrical Engineering. His areas of expertise include location-based services and wireless M2M markets with a special focus on car telematics and fleet management for commercial vehicles.

Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Berg Insight also offers detailed market forecast databases and advisory services. Our vision is to be the most valuable source of intelligence for our customers

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
1.2 Car manufacturers
1.2.1 Toyota Motor Corporation
1.2.2 Volkswagen Group
1.2.3 General Motors
1.2.4 Renault-Nissan Alliance
1.2.5 Ford Motor Company
1.2.6 Fiat Chrysler Automobiles
1.2.7 BMW Group
1.2.8 Daimler Group
1.2.9 Honda Motor
1.2.10 Hyundai Motor Group
1.3 Overview of car OEM telematics services
1.3.1 Embedded and hybrid telematics systems
1.3.2 Car OEM telematics services in North America
1.3.3 Car OEM telematics services in Europe
1.3.4 Car OEM telematics services in Asia-Pacific
1.3.5 Business models
1.4 Regulatory compliance
1.4.1 Vehicle security, safety and emergency call regulations
1.4.2 Vehicle emissions
1.5 Market trends
1.5.1 Hybrid electric, plug-in hybrid electric and all-electric vehicles
1.5.2 Car sharing and personal transportation as a service
1.5.3 ADAS and autonomous driving technologies
1.5.4 Vehicle-to-Everything (V2X) communication
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 tracking
2.2.3 Motor insurance telematics
2.2.4 Vehicle diagnostics and maintenance
2.2.5 Leasing and rental fleet management
2.2.6 Electronic toll collection and congestion charging
2.2.7 Remote control and convenience services
2.2.8 Connected navigation and infotainment
2.2.9 Wi-Fi hotspot
2.3 Connectivity options
2.3.1 Tethered devices
2.3.2 Integrated smartphone solutions
2.3.3 Embedded connectivity solutions
2.3.4 SIM solutions and embedded UICC
3 OEM telematics propositions
3.1 BMW
3.1.1 Overview of BMW group passenger car models
3.1.2 BMW ConnectedDrive infotainment and mobility services
3.1.3 The MINI Connected smartphone integration system
3.2 Daimler Group
3.2.1 Overview of Mercedes-Benz passenger car models
3.2.2 Overview of Mercedes-Benz telematics services
3.2.3 The COMAND Online infotainment system
3.2.4 Mercedes Me services in Europe and China
3.2.5 Mbrace: Mercedes-Benz’ connected service platform in the US
3.3 Fiat Chrysler Automobiles
3.3.1 Overview of Fiat Chrysler Automobiles passenger car models
3.3.2 The Uconnect infotainment systems
3.3.3 Uconnect Access connected services
3.4 Ford Motor Company
3.4.1 Overview of Ford passenger car models
3.4.2 The Ford SYNC infotainment system
3.4.3 Ford SYNC Connect
3.4.4 Ford SYNC connected services
3.5 General Motors
3.5.1 Overview of the main GM passenger car brands
3.5.2 GM OnStar telematics services
3.5.3 Connected infotainment systems and apps
3.6 Honda Motor Company
3.6.1 Overview of Honda and Acura passenger car models
3.6.2 Overview of Honda and Acura telematics solutions
3.6.3 The HondaLink in-car connectivity system
3.6.4 The AcuraLink connected car systems and services
3.7 Hyundai Motor Group
3.7.1 Overview of Hyundai and Kia passenger car models
3.7.2 Overview of the Hyundai Motor Group’s telematics solutions
3.7.3 The Hyundai Blue Link telematics service in the US
3.7.4 The Kia UVO infotainment system and UVO telematics services
3.8 Jaguar Land Rover Automotive
3.8.1 Overview of Jaguar Land Rover passenger car models
3.8.2 Jaguar Land Rover InControl telematics services
3.9 Mazda Motor Corporation
3.9.1 Overview of Mazda passenger car models
3.9.2 The Mazda Connect infotainment system
3.9.3 Mazda Mobile Start
3.10 Nissan Motor Company
3.10.1 Overview of Nissan and Infiniti passenger car models
3.10.2 Nissan and Infiniti connected car services
3.10.3 NissanConnect Services
3.10.4 Infiniti Connection
3.10.5 NissanConnect and Infiniti InTouch infotainment systems
3.11 PSA Group
3.11.1 Overview of Peugeot and Citroën passenger car models
3.11.2 PSA Group telematics services
3.12 Renault Group
3.12.1 Overview of Renault and Dacia passenger car models
3.12.2 Renault R-Link
3.13 Subaru
3.13.1 Overview of Subaru passenger car models
3.13.2 The Subaru STARLINK infotainment and smartphone connectivity system
3.13.3 G-BOOK telematics services in Japan
3.14 Tesla Motors
3.14.1 Overview of Tesla passenger car models
3.14.2 Tesla telematics and infotainment services
3.15 Toyota Motor Corporation
3.15.1 Overview of Toyota and Lexus passenger car models
3.15.2 Overview of Toyota and Lexus telematics services
3.15.3 New T-Connect and G-LINK telematics services for the Japanese market
3.15.4 Entune/Enform and Safety Connect telematics services in North America
3.15.5 The Toyota T-Connect telematics services in the Middle East
3.15.6 Toyota and Lexus connected infotainment systems in Europe
3.16 Volkswagen Group
3.16.1 Overview of Volkswagen Group passenger car brands and models
3.16.2 The Audi Connect telematics service
3.16.3 The Porsche Car Connect telematics service
3.16.4 The Volkswagen Car-Net telematics services
3.17 Volvo Car Group
3.17.1 Overview of Volvo passenger car models
3.17.2 The Volvo On Call telematics service
3.17.3 The Volvo Sensus Connect infotainment system
3.17.4 Volvo In-car Delivery and Concierge Services
4 Telematics solution providers
4.1 Telematics service providers
4.1.1 Airbiquity
4.1.2 Aeris
4.1.3 Beijing Yesway Information Technology
4.1.4 Connexis
4.1.5 Nuance Communications
4.1.6 Octo Telematics
4.1.7 PATEO
4.1.8 SiriusXM Connected Vehicle Services
4.1.9 WirelessCar
4.2 Mobile operators
4.2.1 AT&T
4.2.2 Deutsche Telekom
4.2.3 Sprint
4.2.4 Telefónica Group
4.2.5 Verizon Communications and Verizon Telematics
4.2.6 Vodafone and Vodafone Automotive
5 Market forecasts and trends
5.1 Car telematics market forecasts
5.1.1 Car sales forecast
5.1.2 Car telematics forecast
5.1.3 Car telematics in the EU28+EFTA and Eastern Europe
5.1.4 Car telematics in North America
5.1.5 Car telematics in Latin America
5.1.6 Car telematics in Asia-Pacific
5.1.7 Car telematics in the Middle East and Africa
5.1.8 Hardware and service revenue forecast
5.1.9 Data modem chipset shipments by technology
5.2 Application trends
5.2.1 Mass market safety services driven by regional mandates
5.2.2 OEM SVT services compete with aftermarket services in many countries
5.2.3 Connected navigation faces competition from free smartphone apps
5.2.4 Handset based infotainment services complements embedded solutions
5.2.5 Remote control features become standard
5.2.6 CRM solutions and vehicle diagnostics enable improved customer care
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
5.2.9 Wi-Fi hotspots enable convenient connectivity for passengers
5.2.10 Over-the Air (OTA) updates reduce recall expenses
5.2.11 Call centre convenience services become less common
5.2.12 Concierge services change form to services delivered to the vehicle
5.2.13 Apple CarPlay and Android Auto drives uptake of smartphone integration
5.3 Value chain analysis
5.3.1 Automotive suppliers
5.3.2 Telematics service providers
5.3.3 Car manufacturers
5.3.4 Telecom industry players
5.3.5 Software, application and content suppliers
5.4 Mergers and acquisitions
List of Figures
Figure 1.1: Car parc by region (World 2008–2014)
Figure 1.2: Passenger car parc density by region (World 2015)
Figure 1.3: New car registration data (World 2008–2015)
Figure 1.4: Top 10 countries by new passenger car and light truck registration (2015)
Figure 1.5: Top 20 passenger car manufacturers by revenues (World 2015)
Figure 1.6: Passenger car registrations by manufacturer (EU28+EFTA 2015)
Figure 1.7: Passenger car registrations by manufacturer (North America 2015)
Figure 1.8: Passenger car registrations by manufacturer (Japan 2015)
Figure 1.9: Passenger car registrations by manufacturer (China 2014)
Figure 1.10: Telematics subscribers by carmaker (World 2014–2015)
Figure 1.11: Car OEM telematics availability in North America (September 2016)
Figure 1.12: Car OEM telematics availability in the EU (December 2016)
Figure 1.13: Car OEM telematics availability in Asia-Pacific (December 2016)
Figure 1.14: CO2 limit value curve for passenger cars sold in the EU during 2020
Figure 1.15: Top selling highway capable all-electric cars (World 2015)
Figure 1.16: Registered highway capable BEVs and PHEVs (World 2015)
Figure 1.17: New registrations of highway capable BEVs and PHEVs (World 2015)
Figure 1.18: Car sharing and mobility service companies (World Q4-2015)
Figure 2.1: Cost comparison for 2G, 3G and 4G modules (2016)
Figure 2.2: eCall application lifecycle
Figure 2.3: SVT application lifecycle
Figure 2.4: Motor insurance telematics application lifecycle
Figure 2.5: Vehicle diagnostics application lifecycle
Figure 2.6: Leasing and rental fleet management application lifecycle
Figure 2.7: Electronic toll collection application lifecycle
Figure 2.8: Convenience services and remote control application lifecycle
Figure 2.9: Connected navigation application lifecycle
Figure 2.10: Connectivity options
Figure 2.11: Comparison of SIM form factors
Figure 3.1: BMW ConnectedDrive services and prices (USA 2016)
Figure 3.2: BMW ConnectedDrive packages and prices (China 2016)
Figure 3.3: Mercedes-Benz Mbrace services and price plans (USA 2016)
Figure 3.4: Uconnect Access services and prices (USA 2016)
Figure 3.5: Ford SYNC features and services (2016)
Figure 3.6: GM OnStar services and price plans (North America 2016)
Figure 3.7: GM OnStar LTE Wi-Fi hotspot data plan prices (USA 2015–2016)
Figure 3.8: AcuraLink services and price plans (North America 2016)
Figure 3.9: Hyundai Blue Link services and price plans (USA 2016)
Figure 3.10: Jaguar Land Rover InControl services (Europe 2016)
Figure 3.11: NissanConnect Services subscription packages (USA 2016)
Figure 3.12: Infiniti Connection and Infiniti Intouch services (USA 2016)
Figure 3.13: Subaru STARLINK telematics service packages (USA 2016)
Figure 3.14: Toyota and Lexus telematics systems (2016)
Figure 3.15: Lexus Enform services and prices (USA 2016)
Figure 3.16: Audi North America Q7 and A4 services and price plans (2016)
Figure 3.17: Porsche Car Connect services and price plans (2016)
Figure 3.18: VW Car-Net Security & Service (USA 2016)
Figure 4.1: M2M communication and managed service providers (Q3-2016)
Figure 5.1: New car sales, by region (World 2014–2021)
Figure 5.2: Telematics shipments and active subscribers (World 2014–2021)
Figure 5.3: Telematics shipments and active subscribers (EU28+EFTA 2014–2021)
Figure 5.4: Telematics shipments and active subscribers (Eastern Europe 2014–2021)
Figure 5.5: Telematics shipments and active subscribers (North America 2014–2021)
Figure 5.6: Telematics shipments and active subscribers (Latin America 2014–2021)
Figure 5.7: Telematics shipments and active subscribers (Asia-Pacific 2014–2021)
Figure 5.8: Telematics shipments and active subscribers (MEA 2014–2021)
Figure 5.9: Telematics hardware and service revenues (World 2014–2021)
Figure 5.10: Telematics hardware and service revenues (EU28+EFTA 2014–2021)
Figure 5.11: Telematics hardware and service revenues (North America 2014–2021)
Figure 5.12: Telematics hardware and service revenues (ROW 2014–2021)
Figure 5.13: Shipments of cellular data modems for embedded TCUs (World 2014–2021)
Figure 5.14: SIM-cards managed by service providers by region (World 2014–2021)
Figure 5.15: Mergers and acquisitions in the connected car space (2012–2017)

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