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. The history of car telematics can be traced back to the first stolen vehicle tracking systems based on RF communication using unlicensed frequency bands, which appeared on the market in the 1980s. Subsequently mobile networks have enabled true 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 today 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 mobile phone while the intelligence is built into the car. Solutions relying on integrated smartphones leverage the connectivity and intelligence built into the smartphone. Car manufacturers often use a combination of these options to support different customer needs 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 car manufacturers. 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.
After many years of development and false starts, telematics has gained momentum and virtually all of the world's leading car manufacturers have launched mass-market services in key regions. The drivers behind the 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 and Latin America. The EU's eCall initiative and Russia's ERA-GLONASS will make an automatic emergency call device a mandatory safety feature in all newly produced cars. Brazil's government is pushing car manufacturers to install security tracking devices on all vehicles sold in the country through the so called CONTRAN 245 mandate. In North America, commercial services have driven adoption of OEM telematics services that have evolved from being a differentiator to a mainstream feature offered by most car brands.
Berg Insight estimates that almost 12 percent of all cars sold worldwide in 2013 were equipped with an OEM embedded telematics system. North America is the most advanced market with an attach rate of around 30 percent. Other developed markets such as Europe, Japan and South Korea currently have attach rates of 11-12 percent. China, which has been the world's largest market for new car sales since 2010, is now also becoming a major market for telematics services with an attach rate of nearly 6 percent in 2013. In other regions, the attach rate is only 1-2 percent. GM and BMW are the leading adopters of embedded telematics, widely offering the technology as a standard feature. GM has been the leading provider of telematics for more than a decade, offering the technology as an integral part of its value proposition in North America and China. Other major car brands offering embedded telematics on a broad scale include Hyundai, PSA, Toyota, Renault and Volvo.
Berg Insight estimates that total shipments of embedded car OEM telematics systems reached 8.4 million units worldwide in 2013. Growing at a compound annual growth rate of 30.6 percent, the shipments are expected to reach 54.5 million units in 2020. The number of telematics subscribers using embedded systems is forecasted to grow at a compound annual growth rate of 38.1 percent from 16.6 million subscribers in 2013 to 158.9 million in 2020. However, by 2020 many users will only have access to safety services such as eCall. Berg Insight forecasts that the number of active subscribers using at least one additional premium telematics service will grow to about 112 million worldwide at the end of 2020.
Figure 1.1: Car parc by region (World 2006-2012)
Figure 1.2: Passenger car parc density by region (World 2012)
Figure 1.3: New car registration data (World 2007-2013)
Figure 1.4: Top 10 countries by new passenger car and light truck registrations (2013)
Figure 1.5: Top 20 passenger car manufacturers by revenues (World 2013)
Figure 1.6: Passenger car registrations by manufacturer (EU28+EFTA 2013)
Figure 1.7: Passenger car registrations by manufacturer (North America 2013)
Figure 1.8: Passenger car registrations by manufacturer (Japan 2013)
Figure 1.9: Passenger car registrations by manufacturer (China 2013)
Figure 1.10: Car OEM telematics availability in North America (June 2014)
Figure 1.11: Car OEM telematics availability in the EU (June 2014)
Figure 1.12: Car OEM telematics availability in Asia-Pacific (June 2014)
Figure 1.13: Top selling highway capable all-electric cars (World 2013)
Figure 1.14: Registered highway capable BEVs and PHEVs (World 2013)
Figure 1.15: Car sharing and mobility service companies (World Q1-2014)
Figure 2.1: eCall application lifecycle
Figure 2.2: SVT application lifecycle
Figure 2.3: Motor insurance telematics application lifecycle
Figure 2.4: Vehicle diagnostics application lifecycle
Figure 2.5: Leasing and rental fleet management application lifecycle
Figure 2.6: Electronic toll collection application lifecycle
Figure 2.7: Convenience services and remote control application lifecycle
Figure 2.8: Connected navigation application lifecycle
Figure 2.9: Connectivity options
Figure 3.1: Connected car services by car brand (Europe June 2014)
Figure 3.2: Connected car services by car brand (North America June 2014)
Figure 3.3: Connected car services by car brand (China and Japan June 2014)
Figure 3.4: BMW ConnectedDrive services and prices (USA and Europe 2014)
Figure 3.5: Mercedes-Benz Mbrace services and price plans (USA 2014)
Figure 3.6: Chrysler Uconnect Access services and prices (USA 2014)
Figure 3.7: Ford SYNC features and services (2014)
Figure 3.8: GM OnStar services and price plans (North America 2014)
Figure 3.9: GM OnStar LTE Wi-Fi hotspot data plan prices (USA 2014)
Figure 3.10: AcuraLink services and price plans (North America 2014)
Figure 3.11: Hyundai Blue Link services and price plans (USA 2014)
Figure 3.12: Land Rover InControl services and price plans (UK and Germany 2014)
Figure 3.13: Infiniti Connection services and price plans (USA 2014)
Figure 3.14: Toyota and Lexus telematics systems (June 2014)
Figure 3.15: VW Car-Net services and price plans (USA 2014)
Figure 4.1: M2M communication and managed service providers (Q1-2014)
Figure 5.1: New car sales, by region (World 2013-2020)
Figure 5.2: Telematics shipments and active subscribers (EU28+EFTA 2013-2020)
Figure 5.3: Telematics shipments and active subscribers (Eastern Europe 2013-2020)
Figure 5.4: Telematics shipments and active subscribers (North America 2013-2020)
Figure 5.5: Telematics shipments and active subscribers (Latin America 2013-2020)
Figure 5.6: Telematics shipments and active subscribers (Asia-Pacific 2013-2020)
Figure 5.7: Telematics shipments and active subscribers (MEA 2013-2020)
Figure 5.8: Telematics hardware and service revenues (World 2013-2020)
Figure 5.9: Telematics hardware and service revenues (EU28+EFTA 2013-2020)
Figure 5.10: Telematics hardware and service revenues (North America 2013-2020)
Figure 5.11: Telematics hardware and service revenues (ROW 2013-2020)
Figure 5.12: SIM-cards managed by service providers by region (World 2013-2020)