M2M Research Series The Global Automotive OEM Telematics Market The Global Automotive OEM Telematics Market is the second 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 180 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions. Highlights from the 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. Order now! Please visit our web site to order this Market forecasts by region lasting until 2020. report and find more information about our other titles at www.berginsight.com See inside for further details Berg Insight’s M2M Research Series What are the key business opportunities in the emerging wireless M2M/IoT market? Berg Insight’s M2M Research Series is a unique series of 25 market reports published on a regular basis. Each title offers detailed analysis of a specific vertical application area such as smart metering, fleet management or vehicle telematics. Once per year we also publish summaries of our research with detailed forecasts for the Global and European wireless M2M markets, respectively. www.berginsight.com M2M Research Series Shipments of embedded OEM telematics systems to reach 56 million units in 2020 to install security tracking devices on all vehicles sold in the country Telematics is a broad term that may be applied to a wide range through the so called CONTRAN 245 mandate. In North America, of automotive connectivity solutions. Berg Insight’s definition commercial services have driven the adoption of OEM telematics of a car telematics system in this report is an automatic system services that have evolved from being a differentiator to a mainstream designed for passenger cars that incorporates some form of cellular feature now offered by nearly all the leading car brands on a majority communication. Mobile networks have enabled online connectivity of their models. with two-way communication at the same time as GPS technology Berg Insight estimates that nearly 15 percent of all new cars sold has been commoditised to the extent that satellite positioning can worldwide in 2014 were equipped with an OEM embedded telematics be integrated into virtually any device. Automotive manufacturers system, up from 12 percent in 2013. North America is the most can choose between several connectivity options when creating advanced market with an attach rate of 34 percent. Other developed connected car services, which are not mutually exclusive. The main markets such as Europe, Japan and South Korea currently have attach options are embedded telematics devices, tethered devices and rates of 14–15 percent. China has emerged as an important market integrated smartphones. With embedded systems the connectivity for telematics services with an attach rate of about 8 percent in 2014. and intelligence is built into the car. In the case of tethered devices, In other regions, the attach rate is only 1–5 percent. GM and BMW the connectivity is provided by an external modem or handset while are the leading adopters of embedded telematics, widely offering the the intelligence is built into the car. Solutions relying on integrated technology as a standard feature across models and geographies. GM smartphones leverage the connectivity and intelligence built into the has offered telematics services for more than a decade, offering the smartphone. Carmakers often use a combination of these options to technology as an integral part of its value proposition in North America address different customer requirements and keep pace with the rapid and China. Since August 2015, GM is also launching the OnStar service development of mobile technology. throughout Europe. BMW introduced its ConnectedDrive service in Several categories of car telematics applications are now offered on North America and Western Europe in 1997. ConnectedDrive has a commercial basis by most leading carmakers. Examples include since become a standard feature on a growing number of models, eCall and roadside assistance, stolen vehicle tracking (SVT), vehicle now available in nearly 40 countries on all continents. Other major car diagnostics, connected navigation and infotainment, as well as brands offering embedded telematics on a broad scale include PSA, convenience applications. Convenience applications mainly rely on Hyundai, FCA Group, Toyota, Renault and Volvo. embedded telematics devices to enable remote control of vehicle Berg Insight estimates that total shipments of embedded OEM functions such as door lock/unlock, vehicle preconditioning (heating telematics systems reached 11 million units worldwide in 2014. or cooling of the passenger compartment before a trip) and finding the Growing at a compound annual growth rate of 31.1 percent, the last parking position. Several other applications also exist, for instance shipments are expected to reach 56 million units in 2020. The number usage-based insurance, leasing and rental fleet management, as of telematics subscribers using embedded systems is forecasted to well as electronic toll collection and road charging. However, these grow at a compound annual growth rate of 39.9 percent from 20.5 applications are usually offered by aftermarket service providers. million subscribers in 2014 to 153.4 million in 2020. However, by 2020 The connected car is a major trend in the automotive industry and many users will only have access to safety services such as eCall. virtually all of the world’s leading carmakers have launched mass- Berg Insight forecasts that the number of active subscribers using at market services in key regions. The drivers behind adoption of OEM least one additional premium telematics service will grow to about 110 telematics are both commercial and regulatory. Regulatory initiatives million worldwide at the end of 2020. related to safety and security will have a decisive effect on the adoption of OEM telematics in Europe and Latin America. The EU’s eCall initiative and Russia’s ERA-GLONASS set the sight on making an This report answers the following questions: automatic emergency call device a mandatory safety feature in all new cars sold. Brazil’s government for its part is pushing car manufacturers What is the current status of the car OEM telematics Million Units industry? 200 Which are the key OEM telematics applications? How will regulatory developments affect the telematics 150 industry? Which are the leading telematics service providers? 100 How are mobile operators positioning themselves in the telematics value chain? What telematics offerings are available from the leading 50 car OEMs today? What business models are used by car OEMs? 0 Year How will the market evolve in Europe, North America, Latin 2013 2014 2015 2016 2017 2018 2019 2020 America, Asia-Pacific and MEA? Installed base of active embedded car OEM telematics units (World 2013–2020) Table of Contents Executive summary 1 The global passenger car market 3.2.5 Mbrace: Mercedes-Benz’ connected 3.15.5 The Toyota T-Connect telematics services service platform in the US in the Middle East 1.1 Introduction 3.3 Fiat Chrysler Automobiles 3.15.6 Toyota and Lexus connected infotainment 1.1.1 Passenger cars in use by region 3.3.1 Overview of Fiat Chrysler Automobiles systems in Europe 1.1.2 New passenger car registration trends passenger car models 3.16 Volkswagen Group 1.2 Car manufacturers 3.3.2 The Uconnect infotainment systems 3.16.1 Overview of Volkswagen Group passenger 1.2.1 Toyota Motor Corporation 3.3.3 Uconnect Access connected services car brands and models 1.2.2 Volkswagen Group 3.4 Ford Motor Company 3.16.2 The Audi Connect telematics service 1.2.3 General Motors 3.4.1 Overview of Ford passenger car models 3.16.3 The Porsche Car Connect telematics service 1.2.4 Renault-Nissan Alliance 3.4.2 The Ford SYNC infotainment system 3.16.4 The Volkswagen Car-Net telematics 1.2.5 Ford Motor Company 3.4.3 Ford SYNC connected services services 1.2.6 Hyundai Motor Group 3.17 Volvo Car Group 1.2.7 Fiat Chrysler Automobiles 3.5 General Motors 3.17.1 Overview of Volvo passenger car models 1.2.8 BMW Group 3.5.1 Overview of the main GM passenger car 3.17.2 The Volvo On Call telematics service 1.2.9 Daimler Group brands 3.17.3 The Volvo Sensus Connect infotainment 1.2.10 Honda Motor 3.5.2 GM OnStar telematics services 3.5.3 Connected infotainment systems and apps system 1.3 Overview of car OEM telematics 3.6 Honda Motor Company services 3.6.1 Overview of Honda and Acura passenger 1.3.1 Embedded and hybrid telematics systems 4 Telematics solution providers car models 1.3.2 Car OEM telematics services in North 4.1 Telematics service providers 3.6.2 Overview of Honda and Acura telematics America 4.1.1 Airbiquity solutions 1.3.3 Car OEM telematics services in Europe 4.1.2 Altea 3.6.3 The HondaLink in-car connectivity system 1.3.4 Car OEM telematics services in Asia- 4.1.3 Beijing Yesway Information Technology 3.6.4 The AcuraLink connected car systems and Pacific 4.1.4 Connexis services 1.3.5 Business models 4.1.5 Octo Telematics 3.7 Hyundai Motor Group 1.4 Regulatory compliance 4.1.6 PATEO 3.7.1 Overview of Hyundai and Kia passenger 1.4.1 Vehicle