IndustryARC

GLOBAL CONSUMER TELEMATICS SYSTEMS

MARKET (2013-2018)

By Technology (Integrated, Embedded & Tethered); Services (GPS, Navigation

Systems, Car Diagnostics, Fleet Management & Others), Industry, Components &
Geography

IndustryARC | 1

TABLE OF CONTENTS
1. Global Consumer Telematics - Market Overview
2. Executive Summary
3. Global Consumer Telematics - Market Landscape
3.1. Market Share Analysis
3.2. Comparative Analysis
3.2.1.

Product Benchmarking

3.2.2.

End user profiling

3.2.3.

Top 5 Financials Analysis

4. Global Consumer Telematics - Market Forces

4.1. Market Drivers
4.2. Market Constraints
4.3. Market Challenges
4.4. Attractiveness of the Industry
4.4.1.

Power of Suppliers

4.4.2.

Power of Customers

4.4.3.

Threat of New entrants

4.4.4.

Threat of Substitution

4.4.5.

Degree of Competition

5. Global Consumer Telematics Market Strategic Analysis

5.1. Value Chain Analysis
5.2. Opportunities Analysis
5.3. Product/Market Life Cycle Analysis

IndustryARC | 2

6. Global Consumer Telematics Market-By Classification

6.1. By Industry
6.1.1.

Automotive

6.1.2.

Information Technology

6.1.3.

Telecom

6.1.4.

Insurance

6.1.5.

Logistics

6.1.6.

Customer service providers

6.2. By Services Offered

6.2.1.

GPS Tracking

6.2.2.

Navigation Systems(Intelligent Transport System)

6.2.3.

Car Diagnostics System

6.2.4.

Fleet Management Services

6.2.5.

User based Insurance service(UBI)

6.2.6.

Emergency Notification Service

6.2.7.

Local Search and Concierge Services

6.2.8.

Infotainment Systems

6.3. By Components
6.3.1.

Control Unit

6.3.2.

On-board RAM

6.3.3.

Network Operations System

6.3.4.

CAN-bus (Controller Area Network)

6.3.5.

Wireless communication infrastructure

6.3.5.1. Bluetooth device

6.3.5.2. Wi-fi device

IndustryARC | 3

6.3.6.

GPS antenna

6.3.7.

GNSS receiver

6.3.8.

Visual & Audio interface

6.3.9.

Sensors

6.3.10. Mobile Router

6.4. By Markets
6.4.1.

Passenger Vehicle Telematics

6.4.2.

Commercial Vehicle Telematics

6.5. By Technology
6.5.1.

Integrated Telematics

6.5.2.

Embedded Telematics

6.5.3.

Tethered Telematics

7. Global Consumer Telematics Market -Geographic Analysis

7.1. Introduction
7.2. North & South America
7.3. Europe
7.4. APAC
7.5. ROW
8. Market Entropy
8.1. New Product Launches
8.2. M&As, Collaborations, JVs and Partnerships

IndustryARC | 4

9. Company Profiles (Overview, Financials, SWOT Analysis Top 5 Companies,

Developments, Product Portfolios)
9.1. Omnitracs Ltd.
9.2. BMW AG (Assist)
9.3. Ford Motor Co. (SYNC)
9.4. General Motors (OnStar)
9.5. Agero Connected Services Inc.
9.6. Harman Infotainment
9.7. Toyota Motors(Entune)
9.8. Bosch Automotive Technologies
9.9. Alpine Electronics Inc.
9.10. Continental Automotive
9.11. Airbiquity Inc.
9.12. Trimble Navigation Ltd
9.13. Fleetmatics GPS
9.14. Novatel Wireless
9.15. Telogis Inc
9.16. Auto Page Inc.
9.17. MiX Telematics
9.18. NavMan
9.19. TomTom NV
9.20. Verizon Telematics
10. Appendix
10.1. Abbreviations
10.2. Sources
10.3. Research Methodology
IndustryARC | 5

10.4. Bibliography
10.5. Compilation of Expert Insights
10.6. Disclaimer

IndustryARC | 6

REPORT SCOPE & STAKEHOLDERS

SCOPE
To provide a complete analysis of the Global Consumer Telematics market, it has been divided into
sub-categories depending on the various industries involved in the telematics market, the services
which are offered by consumer telematics, the different components that go into the making of a
telematics system, the passenger-vehicle and the commercial-vehicle segments of the market, and
also the type of technology used in the telematics system. This report tries to analyze the current
market trends in place as well as the future scope for development in this growing market and the
challenges that need to be addressed.
The global market for consumer telematics is definitely on the rise, so we have made an analysis on
the current market players and their presence in the market. The demand for telematics in the
automotive section has shown a steady increase all over the globe, especially in fast growing markets
like China, Brazil, Russia etc.., A geographical analysis has been done to put things into perspective
about the global market. The prominent players in the market currently are Omnitarcs, Trimble
Navigation Ltd., FleetMatics GPS, Telogis Inc etc.
STAKEHOLDERS
Automotive OEMS, Telematic Service providers(TSPs), Component suppliers, Data Service
providers, Customer Service providers, Network Operation Sysytem providers, Insurance
companies are the significant stakeholders in this market.

IndustryARC | 7

REPORT DESCRIPTION
The word telematics broadly refers to a system through which a mechanical or electronic
device communicates(collects,sends,or stores information) with other devices or with human
users over a network. Over the years, the term has been specifically used to refer to on-board
communication capabilities in automotive segment.Telematics therefore is now defined as the
wireless connectivity established between vehicles and other systems like machine to machine,
machine to human or direct to cloud.
The basic business model for automotive segment is changing with the advent of mobile data
connectivity. Smartphones have shown us the advantages of having a mobile data connection,
and now the automobile industry is gradually awakening to the fact that providing the customer
with internet connectivity-on the go, along with other safety and concierge services could well
prove to be the key to survive in the market in the future.
Consumer telematics are end-user-targeted, vehicle-centric information and communication
technologies (vehicle ICTs) and services. While safety and security are the cornerstones of
consumer telematics offerings, the current global economic scenario may indicate a shift of focus
onto technologies which provide the end-user with a system which ensures ease of driving along
with ubiquitous net connectivity without compromising on safety and security. With the fuel
prices on the rise, applications that contribute to cost savings, by increasing engine efficiency will
become a necessity in the future. Focus has also shifted to infotainment-not only in high end
cars but also in mass production, which experts belive is going to be a big market in the coming
days.
Network-enabled cars for consumers provide in-vehicle services, such as emergency assistance,
Global Positioning System (GPS) navigation, traffic information, local search (for example, for
charging stations or restaurants) and concierge services. With the consumer telematics market
growing at a rapid pace, we could very well envision a future in which almost all the vehicles
produced, being fitted with telematics system.
As the services offered by telematics systems are quite wide-ranging, this market requires the
participation of a number of industries such as Automotive OEMs, which have to come up with
economically-viable yet, high quality telematics systems. These systems again are made of a
number of components such as routers, in-built RAMs, control units, CAN boards. antennas etc,
IndustryARC | 8

so electronics manufactureing industries have a major role to play in this segment. Finally the
onus to carry out these services falls on the tele-communications industry who are the key to
supply mobile data-connections, satellite connections, and also the customer service industry to
provide hassle-free 24x7 service to the end-users.
Sample Table 1: Global Consumer Telematics Market Projected Revenue($ Billion), By
End User Industry (2013-2018)
Industry

2013

2015

2017

2018

CAGR (%)
20132018

Fleet Management Telematics

xx

xx

xx

xx

20.18

GPS Navigation and

ITS(Intelligent Transport System)

xx

xx

xx

xx

xx

Auto Insurance Telematics

UBI(User Based Insurance)

xx

xx

xx

xx

xx

Auto Infotainment

13.8

xx

xx

xx

xx

Customer Services

xx

xx

xx

xx

xx

Data Services

0.9

xx

xx

xx

xx

Hardware (including CUs)

1.2

xx

xx

xx

xx

GLOBAL TELEMATICS MARKET

41.0

xx

xx

110.0

21.8

Source: IndustryARC Analysis

The above table represents the projected forecasts for Global Consumer Telematics and Services
market on the basis of end-user services for the year 2015, 2017 and 2018 by keeping 2013 as a
base year for compounding CAGR.
Coming to the current market scenario for consumer telematics, it is estimated to be around the
$ 41 Billion mark in 2013. Based on the growth rate seen in various related industries and the
market share of the major players in this sector, we could forecast the market numbers for the
year 2018.
The CAGR is estimated to be about 21.8%, for the time period of 2013-2018. Currently the
market penetration is seen at 11%, i.e., of all the vehicle units produced globally about 11% have
some kind of telematics system(embedded, integrated or tethered) installed in them. Going by
the market trends this figure is likelyto go upto 46%, in the market by 2018.

IndustryARC | 9

If we take a look at the breakdown of the revenues generated in 2013 in the telematics market, it
is clear that GPS navigation, fleet management and the infotainment sector makeup a major
chunk of the revenues. All these three sectors are forecasted to see a healthy growth rate for the
next five years.
As the safety of the passenger is the most important factor, governments in some countries have
been considering the idea of implementing compulsory safety measures in passenger vehicles
such as emergency assistance in case of accidents which include the vehicle making an
emergency call to the state helpline, and sending the exact GPS co-ordinates of the place where
the accident has occurred. Emergency crash notification and remote diagnostics are preventative
measures designed for the anticipation, avoidance and fast reconciliation of troublesome
situations. They have low-bandwidth communications requirements and predictable usage
profiles. They do not put the much extra burden on the OEM with regard to the amount or the
cost of bandwidth required, operating invisibly to deliver latent but efficient and on-demand
functionality.
Telematics insurance applications are becoming more popular as they allow drivers to reduce
their premiums. With schemes such as Pay-as-you-Drive(PAYD), Pay-how-you-drive(PAHD)
the passenger has the opportunity to save money by avoiding over-priced premiums. Telematics
technology allows us to gather accurate information about the customers driving patterns, so we
can calculate the car insurance based on individual driving behaviour. Customers who drive
safely can receive lower renewal premiums.
Fleet management is one more area wherein telematics play a vital role,as telematics can be used
to make the management system more efficeint by maintaining a real-time track of all the vehicle
in the fleet not only with regards to location, but also with speeds, uptime,downtime etc.,. Fleet
Telematics System(FTS) facilitates the exchange of information between a commercial fleet of
vehicles and their central authority i.e., their dispatch office. A FTS typically consists of mobile
Vehicle Systems (VS) and a stationary Fleet Communication System (FCS). The FCS may be a
stand alone application maintained by the motor carrier or an internet service running by the
supplier of the system. The system usually includes a database in which all vehicle positions and
messages are stored. This system provides the central authority with real time location of each
member of their fleet. The status of each vehicle including when it started up and shut down,
idling state, speed etc..,. With high fuel prices in the market, implementation of telematics

IndustryARC | 10

systems seems like a logical step especially in fast growing markets like China.

For service

providers looking to expand to markets that have yet to reach maturity, China and other
developing markets(especially in Asia-Pacific) provide an ample scope of opportunities in the
future.
The EV(Electric Vehicle) segment is one more segment which experts believe will drive the
market for consumer telematics. EVs(Electric Vehicles)which have been touted as the next bigthing in the automobile market, may not quite have reached the expected levels of market
penetration but experts and automobile majors alike are still very optimistic about the future of
this segment. The EVs already have a built-in central controlling unit , which controls all of the
systems in the vehicle including battery load indicator, rpm etc..., and an embedded telematics
system which can provide data-connectivity and also serve as a multi-purpose engine diagnostic
system, and a built-in infotainment system can be added to this. Many still believe that the
concept of e-cars with smart-grid system, is not too far away from us, it is quite clear that
consumer telematics has a huge role to play in the future of EV segment.
Global Consumer Telmatics Market Share-By End User Industry (%), 2013
Fleet Management

GPS Navigation & ITS

Auto Insurance(UBI)

Customer Services

Data Services

Hardware

Auto Infotainment

Source: IndustryARC Analysis

As a healthy growth has been forecasted for the consumer telematics industry, it has generated a
lot of interest in the automotive, tele-communications and information technology segments to
gain a foot-hold in this market and many of the major players in these industries are either
investing into the R&D of their own telematics platform or are collaborating with already
IndustryARC | 11

existing consumer telematics suppliers to to produce embedded telematics systems in their

vehicles.
The report also talks about the developments taking place in the market such as the formation of
the GENIVI Infotainment platform formed by some of the major industries such as BMW
,GM, Delphi, Intel to provide an open source platform to align requirements, deliver reference
implementations, offer certification programs.
Currently some of the major players in this field include automotive bigwigs like BMW, Ford,
General Motors, Toyota, Mercedes-Benz, Mitsubishi Motors and also tech giants such as Delphi,
Robert-Bosch, Continental AG and also other major telematics suppliers like Omnitracs,
Trimble Navigation Ltd, Fleetmatics GPS, Masternaut, MiX Telematics etc.

IndustryARC | 12

GLOBAL CONSUMER TELMATICS MARKET - TRENDS

With the rising demand for ubiquitous connectivity by the customer, Consumer Telematics
throws up a wide range of opportunities for the various participants in this field to gain a strong
foot-hold over the market. Since the time GPS navigation services were made open to public
use, consumer telematics has come a long way and developed into a multi-billion dollar market.
Some of the key market trends seen over the years are
Major share of revenues in the market are attributed to GPS navigation systems, Fleet
Management and Infotainment.
Since the early 2000s when the consumer telematics markets started off in a nascent
stage, the cost of the equipments have come down drastically, thereby increasing the
demand for telematics.
The trend of only high-end vehicles employing telematics is on the decline with other
mass production models of cars also are coming equipped with basic telematics system.
Though the U.S. is still the major market, other developing countries like China which
produces the highset number of passenger vehicles in the world are rapidly gaining
ground in the telematics market.
The Usage-based-Insurance(UBI) concept is fast catching up in Europe(especially
Western Europe) and could become a major contributor to the overall telematics
industry.
With decreasing equipment cost, reducing data plan charges and high demand for web
connectivity, the connected-car is definitely going to be the automobile of the future.

IndustryARC | 13

RESEARCH METHODOLOGY
The quantitative and qualitative data collected for the Telematics market report is from a
combination of secondary and primary sources. Research interviews were conducted with senior
executives and/or managers of leading Telematics product manufacturers and its service
providers. These Key Opinion Leaders (KOLs) were then provided a questionnaire to gather
quantitative and qualitative inputs on their operations, performance, strategies and views on the
overall market, including key developments and technology trends. Data from interviews is
consolidated, checked for consistency and accuracy, and the final market numbers are again
validated by experts. The global market was split by products, services and geography based on
different factors like primary and secondary sources, understanding of the number of companies
operating in each segment and also KOL insights.
We have used various secondary sources such as directories, articles, white papers, newsletters,
annual reports and paid databases such as OneSource, Hoovers and Factiva to identify and
collect information for extensive technical and commercial study of the Telematics products and
services market.
The key players in the market and its value chain were identified through secondary research and
their market opinions were also gathered in a similar way through telephonic interviews and
questionnaires. We have also studied the annual reports of these top market players. Interviews
with key opinion leaders such as directors, managers, and marketing personnel were used
extensively in understanding the need and emergence of the global consumer Telematics market.

IndustryARC | 14

THE ARC ADVANTAGE

An analytical model lies at the core of our process, ensuring logical consistency
throughout our research. We complement the model with secondary data and
interviews with industry experts to reflect the latest trends. With our final expert
validation, we provide you with only the most accurate and actionable intelligence.

THE ARC PROCESS

Analytical
Method
1. Granular
breakdown of
drivers into
factors
2. Validate all
factors in terms
of their present
impact on the
market
3. Assign weights
to these factors in
terms of their
relevance and
impact on the
market
4. Build the
Analytical Model
ANALYTICAL MODEL

Base Method

1. Get a topdown estimate of

the market
2. Follow it up
with a bottom-up
estimate of the
market
3. Check
forconsistency
and new growth
factors that are
relevant over the
next 10 Years

4. Build the Base

model
BASE MODEL

Consolidation
Method
1. Granular
breakdown of
drivers into
factors
2. Validate all
factors in terms
of their present
impact on the
market.
3. Assign weights
to these factors in
terms of their
relevance and
impact on the
market.
4. Build the
Consolidated
Model

Delphi
Verification
1. Verify the
findings of the
model with
experts from
across the value
chain
2. Verify the
findings with
players across
small and large
enterprises
3. Tweak the
model and add
new factors
4. Finalize the
ARC Model

CONSOLIDATED MODEL

ARC MODEL

IndustryARC | 15

ABOUT US
IndustryARC was started by a group of young, passionate professionals along with
extensively experienced industry veterans across various business segments. Our focus and
expertise is mainly in the field of analytics, market research and consulting. Our singular
goal is to provide accurate and affordable research to our clients.
Our research team has expertise in diverse fields like Automotive, Chemicals, Consumer
Product & Services, Electronics, Food & Beverages, Healthcare etc., However diverse the
expertise maybe, everyone in our team shares one common trait - we love data and we love
providing solutions to clients using that data even more! Seeing your business flourish
based on our solutions and strategy is what we love the most!
IndustryARC publishes more than 30 reports on an annual basis in the mentioned
Industries. Our reports are in-depth and high quality reports that can help decision makers
frame better strategies for their business requirements. These reports can be further
customized as per your needs.
Disclaimer:

The reports sold by IndustryARC are limited publications containing valuable

market information provided to a select group of customers in response to orders.

Our customers acknowledge and agree that any report bought from IndustryARC is
for their own internal use and not for general publication or disclosure to third
parties.

Our reports or part of the reports, information contained in the report, cannot be
shared or resold to any other third party.

Disclosure to third parties, usage of data in a public document, article or blog by the
customer can be done with prior permission taken from IndustryARC.

For information regarding permissions and sales, contact:

sales@industryarc.com | sanjay.matthews@industryarc.com

IndustryARC | 16

IndustryARC
+1 614 - 588 - 8538
sales@industryarc.com

Copyright 2013 IndustryARC

All Rights Reserved. This document contains highly confidential information and is the sole
property of IndustryARC. No part of it may be circulated, copied, quoted, or otherwise
reproduced without the approval of IndustryARC.

IndustryARC | 17