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The Global Automotive OEM Telematics Market – 4th Edition

The Global Automotive OEM Telematics Market is thefourth consecutive report from Berg Insight analysing thelatest developments on the connected car market worldwide.This strategic research report from Berg Insight providesyou with 250 pages of unique business intelligence including5-year industry forecasts and expert commentary on whichto 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 21 major car OEMs and their telematics propositions.
Updated market forecasts by region lasting until 2023.

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 connectivitysolutions. Berg Insight’s definition of a car telematics system in this report is an automaticsystem designed for passenger cars that incorporates some form of cellular communications.Mobile networks have enabled online connectivity with two-way communication at the sametime as GPS technology has been commoditised to the extent that satellite positioning can beintegrated into virtually any device. Automotive manufacturers can choose between severalconnectivity options when creating connected car services, which are not mutually exclusive.The main options are embedded telematics devices, tethered devices and integratedsmartphones. Connectivity and intelligence can be built into the car in the form of embeddedsystems. In the case of tethered devices, the connectivity is provided by an external modemor handset while the intelligence is built into the car. Solutions relying on integratedsmartphones leverage the connectivity and intelligence built into the smartphone. Carmakersoften use a combination of these options to address different customer requirements andkeep pace with the rapid development of mobile technology.

Several categories of car telematics applications are now offered on a commercial basis bymost leading carmakers. Examples include eCall and roadside assistance, stolen vehicletracking (SVT), vehicle diagnostics, over-the-air updates, connected navigation andinfotainment, Wi-Fi hotspots as well as convenience applications. Convenience applicationsmainly rely on embedded telematics devices to enable remote control of vehicle functionssuch as door lock/unlock, vehicle preconditioning (heating or cooling of the passengercompartment before a trip) and finding the last parking position. Several other applicationsalso exist, for instance usage-based insurance, leasing and rental fleet management, as wellas electronic toll collection and road charging. However, these applications are usuallyoffered by aftermarket service providers. Carmakers are also gradually exploring in-vehiclecommerce platforms and data exchanges to offer telematics data to third-party serviceproviders.

The connected car is a major trend in the automotive industry and virtually all of the world’sleading carmakers have launched mass-market services in key regions. The drivers behindadoption of OEM telematics are both commercial and regulatory. Regulatory initiatives relatedto 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 have made an automatic emergencycall device a mandatory safety feature in all new car models sold. In North America,commercial services have driven the adoption of OEM telematics services that have evolvedfrom being a differentiator to a mainstream feature now offered by nearly all the leading carbrands on a majority of their models.

Berg Insight estimates that more than 32 percent of all new cars sold worldwide in 2017 wereequipped with an OEM embedded telematics system, up from 23 percent in 2016. NorthAmerica is the most advanced market with an attach rate of 47 percent followed by EU+EFTAwith an attach rate over 40 percent. Other developed markets such as Japan and SouthKorea currently have attach rates of approximately 35 percent. China has emerged as animportant market for telematics services with an attach rate of about 26 percent in 2017. Inother regions, the attach rate is below 15 percent. GM, BMW and PSA are the leadingadopters of embedded telematics, widely offering the technology as a standard featureacross models and geographies. GM has offered telematics services for more than twodecades, offering the technology as an integral part of its value proposition in North America,Europe and China. BMW introduced its ConnectedDrive service in North America andWestern Europe in 1997. An embedded telematics unit has since become a standard featureon all BMW vehicles sold in the 45 markets where ConnectedDrive is available. Other majorcar brands offering embedded telematics on a broad scale include Mercedes-Benz, Hyundai,FCA Group, Volvo Cars, Toyota, Renault and Tesla.

Berg Insight estimates that total shipments of embedded OEM telematics systems reachedalmost 27 million units worldwide in 2017. Growing at a compound annual growth rate of 16.6percent, the shipments are expected to reach 67 million units in 2023. The number oftelematics subscribers using embedded systems is forecasted to grow at a compound annualgrowth rate of 31.9 percent from 49.0 million subscribers in 2017 to 258.1 million in 2023.

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 Renault-Nissan-Mitsubishi Alliance
1.2.3 Volkswagen Group
1.2.4 Ford Motor Company
1.2.5 General Motors
1.2.6 Fiat Chrysler Automobiles
1.2.7 Daimler Group
1.2.8 BMW 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 Carsharing 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 Over-the-air updates
2.2.6 Leasing and rental fleet management
2.2.7 Electronic toll collection and congestion charging
2.2.8 Remote control and convenience services
2.2.9 Connected navigation and infotainment
2.2.10 Connected in-vehicle payments
2.2.11 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 BMW CarData
3.1.4 The MINI Connected smartphone integration system
3.2 Changan Motors
3.2.1 Overview of Changan Motors passenger car models
3.2.2 Overview of Changan Motors InCall
3.3 Daimler Group
3.3.1 Overview of Mercedes-Benz passenger car models
3.3.2 Overview of Mercedes-Benz telematics services
3.3.3 The COMAND Online infotainment system
3.3.4 MBUX – Mercedes-Benz User Experience infotainment system
3.3.5 Mercedes Me services in Europe and Asia
3.3.6 Mbrace: Mercedes-Benz’ connected service platform in the US
3.4 Fiat Chrysler Automobiles
3.4.1 Overview of Fiat Chrysler Automobiles passenger car models
3.4.2 The Uconnect infotainment systems
3.4.3 Uconnect connected services
3.4.4 Mopar Connect in Europe
3.5 Ford Motor Company
3.5.1 Overview of Ford passenger car models
3.5.2 The Ford SYNC infotainment system
3.5.3 Ford SYNC Connect
3.5.4 Ford SYNC connected services
3.6 Geely
3.6.1 Overview of Geely passenger car models
3.6.2 The Geely G-Link, Geely G-Netlink 3.0 and GKUI
3.7 General Motors
3.7.1 Overview of the main GM passenger car brands
3.7.2 GM OnStar telematics services
3.7.3 Connected infotainment systems and apps
3.8 Great Wall Motors
3.8.1 Overview of Great Wall Motors passenger car models
3.8.2 The GWM Haval Connected telematics system
3.9 Honda Motor Company
3.9.1 Overview of Honda and Acura passenger car models
3.9.2 Overview of Honda and Acura telematics solutions
3.9.3 The HondaLink in-car connectivity system
3.9.4 The AcuraLink connected car systems and services
3.10 Hyundai Motor Group
3.10.1 Overview of Hyundai and Kia passenger car models
3.10.2 Overview of the Hyundai Motor Group’s telematics solutions
3.10.3 The Hyundai Blue Link telematics service in the US
3.10.4 The Kia UVO infotainment system and UVO telematics services
3.11 Jaguar Land Rover Automotive
3.11.1 Overview of Jaguar Land Rover passenger car models
3.11.2 Jaguar Land Rover InControl telematics services
3.12 Mazda Motor Corporation
3.12.1 Overview of Mazda passenger car models
3.12.2 The Mazda Connect infotainment system
3.12.3 Mazda Mobile Start
3.13 Nissan Motor Company
3.13.1 Overview of Nissan and Infiniti passenger car models
3.13.2 Nissan and Infiniti connected car services
3.13.3 NissanConnect Services
3.13.4 Infiniti Connection
3.13.5 NissanConnect and Infiniti InTouch infotainment systems
3.14 PSA Group
3.14.1 Overview of Peugeot, Citroën and Opel passenger car models
3.14.2 PSA Group telematics services
3.15 Renault Group
3.15.1 Overview of Renault, Dacia and Lada passenger car models
3.15.2 Renault R-Link and telematics services
3.15.3 Renault Easy Connect
3.16 SAIC Motors
3.16.1 Overview of SAIC Motors passenger car models
3.16.2 The SAIC connected car programmes
3.17 Subaru
3.17.1 Overview of Subaru passenger car models
3.17.2 The Subaru STARLINK infotainment and smartphone connectivity system
3.17.3 G-BOOK telematics services in Japan
3.18 Tesla
3.18.1 Overview of Tesla passenger car models
3.18.2 Tesla telematics and infotainment services
3.19 Toyota Motor Corporation
3.19.1 Overview of Toyota and Lexus passenger car models
3.19.2 Overview of Toyota and Lexus telematics services
3.19.3 The T-Connect and G-LINK telematics services for the Japanese market
3.19.4 Entune/Enform and Safety Connect telematics services in North America
3.19.5 The Toyota T-Connect telematics services in the Middle East
3.19.6 Toyota and Lexus connected infotainment systems in Europe
3.20 Volkswagen Group
3.20.1 Overview of Volkswagen Group passenger car brands and models
3.20.2 The Audi Connect telematics service
3.20.3 The Porsche Car Connect telematics service
3.20.4 The Volkswagen Car-Net telematics services
3.21 Volvo Car Group
3.21.1 Overview of Volvo passenger car models
3.21.2 The Volvo On Call telematics service
3.21.3 The Volvo Sensus Connect infotainment system
3.21.4 Volvo In-car Delivery, Concierge Services and Car sharing.
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 Bright Box
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 Connect
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 .. 233
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
5.2.14 Data exchanges to make OEM data available for third party providers
5.2.15 In-vehicle commerce platforms are emerging on mature markets
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
Glossary
Index
List of Figures
Figure 1.1: Car parc by region (World 2009–2015)
Figure 1.2: Passenger car parc density by region (World 2015)
Figure 1.3: New car registration data (World 2010–2017)
Figure 1.4: Top 10 countries by new passenger car and light truck registrations (2017)
Figure 1.5: Top 20 passenger car manufacturers by revenues (World 2017)
Figure 1.6: Passenger car registrations by manufacturer (EU28+EFTA 2017)
Figure 1.7: Passenger car registrations by manufacturer (North America 2017)
Figure 1.8: Passenger car registrations by manufacturer (Japan 2017)
Figure 1.9: Passenger car registrations by manufacturer (China 2017)
Figure 1.10: Telematics subscribers by carmaker (World 2016–2017)
Figure 1.11: Car OEM telematics availability in North America (June 2018)
Figure 1.12: Car OEM telematics availability in the EU (June 2018)
Figure 1.13: Car OEM telematics availability in Asia-Pacific (June 2018)
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 2017)
Figure 1.16: Registered highway capable BEVs and PHEVs (World 2017)
Figure 1.17: New registrations of highway capable BEVs and PHEVs (World 2017)
Figure 1.18: Leading carsharing service companies (World Q4-2017)
Figure 2.1: Cost comparison for IoT Technologies (2018)
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 2018)
Figure 3.2: BMW ConnectedDrive packages and prices (China 2018)
Figure 3.3: Mercedes-Benz Mbrace services and price plans (USA 2018)
Figure 3.4: Uconnect services and prices (USA 2018)
Figure 3.5: Ford SYNC features and services (2018)
Figure 3.6: GM OnStar services and price plans (North America 2018)
Figure 3.7: GM OnStar LTE Wi-Fi hotspot data plan prices (USA 2015–2017)
Figure 3.8: AcuraLink services and price plans (North America 2018)
Figure 3.9: Hyundai Blue Link services and price plans (USA 2018)
Figure 3.10: Jaguar Land Rover InControl services (Europe 2018)
Figure 3.11: NissanConnect Services subscription packages (USA 2018)
Figure 3.12: Infiniti Connection and Infiniti Intouch services (USA 2018)
Figure 3.13: Subaru STARLINK service packages for model year 2018 (USA 2018)
Figure 3.14: Toyota and Lexus telematics systems (2018)
Figure 3.15: Lexus Enform services and prices (USA 2018)
Figure 3.16: Audi North America Connect services and price plans (2018)
Figure 3.17: Porsche Car Connect services and price plans (2018)
Figure 3.18: VW Car-Net Security & Service (USA 2018)
Figure 4.1: M2M communication and managed service providers (Q2-2018)
Figure 5.1: New car sales, by region (World 2016–2023)
Figure 5.2: Telematics shipments and active subscribers (World 2016–2023)
Figure 5.3: Telematics shipments and active subscribers (EU28+EFTA 2016–2023)
Figure 5.4: Telematics shipments and active subscribers (Eastern Europe 2016–2023)
Figure 5.5: Telematics shipments and active subscribers (North America 2016–2023)
Figure 5.6: Telematics shipments and active subscribers (Latin America 2016–2023)
Figure 5.7: Telematics shipments and active subscribers (Asia-Pacific 2016–2023)
Figure 5.8: Telematics shipments and active subscribers (MEA 2016–2023)
Figure 5.9: Telematics hardware and service revenues (World 2016–2023)
Figure 5.10: Telematics hardware and service revenues (EU28+EFTA 2016–2023)
Figure 5.11: Telematics hardware and service revenues (North America 2016–2023)
Figure 5.12: Telematics hardware and service revenues (ROW 2016–2023)
Figure 5.13: Shipments of cellular data modems for embedded TCUs (World 2016–2023) . 228
Figure 5.14: SIM-cards managed by service providers by region (World 2016–2023)
Figure 5.15: Mergers and acquisitions in the connected car space (2012–2018)

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