Transcript Telematics Presentation

GPG
Automotive Telematics and
Multimedia in the United States
Electronic toll collection Car navigation
Traffic management and routeguidance On-board internet and
Internet and e-mail access “Mobile
office” Theft-tracking Emergency call
On-board collision-warning Interactive
vehicle diagnostics Value-added
content services Nav Systems
Reservations Entertainment Bundled
systems Communications Video
games DVDs Integrated systems
Electronic toll collection Car navigation
Traffic management
GLOBAL POLICY GROUP
GPG
Automotive Telematics and
Multimedia in the United States
Outline of Presentation
• Defining Telematics
• Passenger Car Telematics Market Overview
• Commercial Vehicle Telematics Market
Overview
• Recent Developments: Emerging Drivers of
Growth in the Passenger Market
• Future Trends in Passenger Car Telematics
• Future Trends in Commercial Vehicle
Telematics
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Automotive Telematics and
Multimedia in the United States
Defining Telematics
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Defining Telematics
telematics
the convergence of wireless
communications, location
technology, and in-vehicle
electronics which is being used to
integrate the automobile into the
information age
Telematics Building Blocks:
Technologies
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Location
Technology
Map
Databases
Voice-recognition
Technology
Integrated Telematics Systems
Navigation
Systems
Interior
Systems
Communications
Technology
Mayday
Systems
Car
PCs
Wireless
Phones
Audio/
Video
Systems
Networking
and Vehicle
Interface
Technology
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Telematics Building Blocks:
Applications and Services
Services available using
telematics devices:
Emergency call
or mayday
services
Device-to-device
communications
Interactive
on-board
entertainment
Navigation and
route guidance
services
Remote vehicle
access and
diagnostics
Person-toperson
communications
E-commerce
applications
Interactive valueadded services
Commercial fleet
management
Remote vehicle
theft tracking
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Automotive Telematics and
Multimedia in the United States
Passenger Car Telematics
Market Overview
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The U.S. Passenger Car Market:
Current Device Options
• Autonomous navigation systems
• Integrated multimedia systems
• On-board personal computers
• Rear-seat entertainment systems
• Installed wireless phones
• Can be integrated with mayday service
Handheld wireless phones and PDAs
• Not telematics devices
• Could affect telematics demand
• Similar technologies/functions, but portable
• Wireless integration soon possible
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The U.S. Passenger Car Market:
Current Service Options
• OEM mayday or emergency call services
• GM/Saab OnStar, Ford/Lincoln RESCU,
Mercedes TeleAid, Jaguar Assist, etc.
• Simple interface, connects to human voice
• Fee- or subscription-based
• Range of services (mayday, concierge, etc.)
• Independent information and emergency
call services
• ATX, Cross Country Group
• Similar services, fees, etc., to OEM systems
• Often serve as call centers for OEM systems
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The U.S. Passenger Car Market:
Key Telematics Suppliers
Automotive
networking and
interface firms
Satellite
radio firms
Automotive
audio firms
Nav system
producers
Automotive
electronics
firms
Dot.coms
Communications
technology firms
Automotive
Telematics
Location
technology
firms
Call center
firms
Automotive
interior firms
Mapping
Voice recognition
technology firms software firms
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Automotive Telematics and
Multimedia in the United States
Commercial Vehicle
Telematics Market Overview
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The U.S. Telematics Market:
Telematics Devices for Tractors
• On-board integrated telematics systems
• On-board computer, GPS, wireless
communications, interface with tractor data bus
• Driver interface in cab for data and voice
communications with dispatcher
• Screen for incoming text messages with
keyboard or touchscreen for sending messages
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The U.S. Telematics Market:
Telematics Devices for Trailers
• On-board integrated tracking systems with
GPS receiver/antenna, wireless
communications, and battery/charger
• On-board sensor systems to allow
monitoring of whether trailer is loaded,
doors open, temperature, etc.
• Sensor system often integrated with tracking system to
send real-time information to the fleet office
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The U.S. Telematics Market:
Commercial Vehicle Services
Communications
Tractor and trailer location
Routing/dispatch/ETA information
Electronic driver logs
Reporting
Billing/accounting
Electronic customer relations management
Remote tractor/trailer monitoring/diagnostics
Theft monitoring
Driver performance monitoring
Fleet management, cost, productivity assessments
GPG
The U.S. Telematics Market:
Fleet Service/System Providers
• Communications/information service providers
• American Mobile, Qualcomm/OmniTRACS,
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ARINC/Dominium, HighwayMaster, Orbcomm
Communications/information systems providers
• Cadec, XATA, Eaton
Internet-based communications/information
services
• @Road, Qwiktrack
Truck-stop kiosk/hook-up internet-based
communications/information services
• DriverNet.com, PNV
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Automotive Telematics and
Multimedia in the United States
Recent Developments:
Emerging Drivers of Growth
in the Passenger Market
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Driver #1:
Volume
• More telematics and multimedia devices as
OE options on MY2000 cars and light trucks
• Primarily on luxury models
and minivans
• Some telematics and
multimedia devices are
standard equipment in
MY2000
• Only on luxury models
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Driver #1:
Volume
• More OE telematics services in MY2000
• Particularly emergency-response services
• Some (OnStar) expanding beyond luxury models
• OnStar available on 29 MY2000 GM models
• Rely on simple interface, human contact
• More OEMs providing telematics service
interface as standard equipment
• Revenues derived from service fees or
subscription
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Driver #1:
Volume
• Expanding range of products is essential to
market’s growth
• Increasing consumer awareness of telematics
• Availability
in
rental
cars,
increased
advertising (especially OnStar and Mercedes)
• Telematics systems in hands of early acquirers
and other trend-setters
• High satisfaction and intention to make
second purchase among telematics users
• Higher volumes reduce prices, encourage
innovation and integration
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Automotive
electronics
firms
Driver #2:
Proliferating Industry Alliances
Computer
software
firms
Automotive
interior
firms
Voice
technology
firms
Communications
technology firms
Location
technology
firms
Mapping
software
firms
Telematics
suppliers
Networking
technology
firms
Nav system
producers
OEMs
Call center
providers
Telecom
service
providers
OEMs
“Content”
providers
Telecom
equipment
providers
GPG
Driver #2:
Proliferating Industry Alliances
• Telematics applications depend on diverse
technologies
• Beyond scope of one individual company
• Beyond scope of automotive OEMs
• Beyond scope of traditional automotive suppliers
• Beyond scope of telecom, consumer electronics,
IT suppliers
• Telematics services require diverse types of
content, customer relations, etc.
• Alliances essential to meeting needs for
diverse technologies and skills
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Driver #3:
Movement on Standards
• Auto and electronics firms cooperate on standards
In-vehicle Telematics
Standards
TSC
AMI-C
IDB
SAE
Forum
Standardizing
interfaces to
promote “plugand-play”
Standardizing open
networks through
ITS Data Bus
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Driver #4:
Benign or Supportive Public Sector
• Regulations have helped create market
• E-911 regulation provided invaluable boost to
GPS location technology
• EPA and CARB regulations helped drive OBD-I
and OBD-II development
• Federal and state governments actively
promoting ITS research and deployment
• Safety concerns on hold so far, but threaten
• Industry adopting some self-regulation
• NHTSA focus to date on cell phones
• States and localities also concerned
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Driver #5:
Telematics and E-commerce
• Many OEMs view telematics services as part
of web that extends customer relationship
• Envision wide-ranging revenues from service
fees, vehicle maintenance, advertising, etc.
• Simple interface as standard equipment
• Contrast with device-led growth in Japan
Internet
content
Internet
portal
Satellite
Radio
OEM
Call
center
Service
Providers
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Recent Developments Drive
Projections of Growth
Subscribers to Telematics Services
Millions of subscribers
12
11.17
10
7.98
8
6
4.96
4
2.54
2
0
0.01
0.06
0.2
1997
1998
1999
Source: The Strategis Group
0.82
2000
2001
2002
2003
2004
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Automotive Telematics and
Multimedia in the United States
Future Trends in Passenger
Car Telematics
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Key Features of Next-Generation
Telematics Devices
• Simple interface
• Technological capabilities must be balanced by
safety concerns and consumer interests
• Voice recognition and text-to-voice
• May be key to safety while car is moving
• Systems may limit some functions to parked car
• “Plug and play”
• Consumer will be able to install next-generation
telematics and multimedia systems
• Overcomes disparity in design and life cycles
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Key Features of Next-Generation
Telematics Devices
• “Node on the internet”
• Connect vehicle to internet content
• Safety concerns must be addressed
• Real-time features
• Real-time traffic key to growth in nav systems
• Move away from limited coverage of
autonomous CD- and DVD-based systems
• Integration of functions
• Single interface for wide range of applications
• Communications (data and voice), navigation,
audio, vehicle controls
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Next-Generation Telematics:
Is Integration the Killer Application?
• Everyone hopes for a single “killer app”
• Navigation systems key in Japan
• Killer application in U.S. could be integration
• Integration of interface for voice/data
communications, vehicle controls, vehicle
diagnostics, location technology, etc.
• Integration can ease driver distraction
• Integration driving cross-sectoral alliances
• Risk: Integrated devices can easily become
outdated as technology rapidly changes
• Does the answer lie in services, not devices?
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Key Features of Next-Generation
Telematics Services
• Voice/human contact essential
• Call centers will not be replaced by internet
• Particularly essential to mayday services
• Most important to older buyers
• Location-based content to increase
• Nationwide coverage essential
• Real-time traffic, weather, road status
• Location-based concierge services and POIs
• Location-specific targeted advertising
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Leading Areas of Consumer Interest
in Telematics Services
Remote Door Unlock
28%
Routing Assistance
31%
Remote Diagnostics
31%
Lost & Found
24%
Stolen Vehicle Tracking
41%
Vehicle Alarm Notification
25%
Severe Impact Notification
56%
Airbag Notification
38%
Roadside Assistance
61%
Emergency Response
61%
Source: ATX Technologies
0%
10%
20%
30%
40%
50%
60%
70%
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Potential Roadblock #1:
Price
• OE telematics devices still expensive
• Installed nav systems cost $1800-$2000
• Often bundled in luxury packages costing
anywhere from $2500 to $7000
• Aftermarket systems also expensive
Device prices must come down
• Telematics services usually start at
$200/year for basic package
Service prices less an issue – provided
interface is standard equipment
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Potential Roadblock #2:
Competition from Portable Devices
Portable
Driving
Technology
Bluetooth
IDB Bus
Cell phones
Smart Phones
Laptops
PDAs
Nav Systems
Vehicle
Portable
Dockable Cell phones
Mayday Systems
Nav systems
Installed Audio/Video
Systems
AutoPC
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Potential Roadblock #3:
Privacy
• Privacy issues long raised about Internet
• Ability of Web sites to track individual
preferences without permission raises concerns
• Telematics compounds concerns through
vehicle tracking, remote monitoring, etc.
• Concerns already appear in trucking industry
• Consumer concerns slow ITS deployment
• Consumer concerns likely to grow
• Telematics service revenues depend on
location-specific advertising, selling location
and purchase information, etc.
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Potential Roadblock #4:
Infrastructure
• Telematics infrastructure poorly developed:
• Multiple wireless communication standards
• 3G may resolve some of this problem
• What about 4G?
• Traffic information is inconsistent
• Traffic Data Forum aims to address issue
• Poorly developed public ITS infrastructure
• National ITS Architecture could address
interoperability issues
• ITS Deployment funding increasing
• Unclear support for IVI research
Potential Roadblock #5:
A Proliferation of Standards
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Device-to-Device
Connection Standards
Communication
Standards
IrDA
Bluetooth
3GPP
In-vehicle Telematics
Standards
TSC
WAP
AMI-C
IDB
Forum
SAE
Traffic
Data
Forum
ITS
Standards
Infrastructure Standards
Safety
Standards?
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Potential Roadblock #6:
Safety
• Regulators target cell-phone use in cars
• NHTSA recently issued public warning
• States and localities consider bans
• NHTSA now targeting in-vehicle telematics
• NHTSA “forum” and public hearing assess
industry efforts, need for federal action
• Ongoing driver-distraction studies seek data
• In-car internet and e-mail of particular concern
• Hands-free does not solve distraction problem
• NHTSA open to industry self-regulation
• Emergence of groups modeled on MADD?
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Automotive Telematics and
Multimedia in the United States
Future Trends in Commercial
Vehicle Telematics
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Long-Haul Trucking to Remain Key
Telematics Market
• Key customers in long-haul trucking sector
• Larger for-hire fleets have resources and needs
• Evolving technology offers growth opportunities
• Sector dominated by proprietary systems
and well-entrenched national providers
• Qualcomm, HighwayMaster, American Mobile
• Developing new products and services to take
advantage of new technologies
• Trailer-tracking offers new growth area
• Demand driven by concerns about theft, lost
trailers, efficient fleet-management, etc.
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Commercial Vehicle Telematics:
Future Trends
• Open data bus could offer new opportunities
• IDB Forum has held discussions with heavy-
truck standards groups
• Adoption of IDB architecture could open door to
new services and devices
• Multimedia, in-cab computer, infotainment
• Truck makers could become more active
• Portable devices would appeal to fleets that
rely on rental units
• “Turnkey” solutions would appeal to smaller
LTL fleets and short-haul fleets
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Commercial Vehicle Telematics:
Future Trends
• Growth in location-based wireless fleetmanagement services
• Communications, asset tracking, remote
diagnostics, theft monitoring, etc.
• Integrates electronic fleet-management and
CRM functions with the Web
• Integration with “virtual” marketplaces
• Existing suppliers, communications, and
software firms developing new products
• Smaller fleets prime market for new internetbased technology and services
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Commercial Vehicle Telematics:
Privacy and Safety Pose Threats
• Privacy issue is a major potential roadblock
• Fleets use data for performance reviews,
incentive programs, etc.
• Truckers angered by close monitoring of
performance, driving techniques, etc.
• Drivers and unions oppose tracking of trucks
• Fears of “big brother”
• DOT mandate of electronic recorders sparks
backlash
• NHTSA and FMCSA concerned about safety
of trucking telematics systems
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Commercial Vehicle Telematics:
A More Mature Market
• Unlike passenger market, trucking sector has
existing telematics infrastructure
• Long-haul market dominated by Qualcomm, etc.
• Heavy investment to date make it hard for
fleets to move to more open systems
Truck makers play little role to date
• Smaller fleets offer best target
• Internet-based services appealing due to low
start-up costs
• Truck-stop services target individual truckers
• Fast-growing short-haul sector also key
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Automotive Telematics and
Multimedia in the United States
Summing Up
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Summing Up:
Keys to the U.S. Telematics Market
• Development of integrated devices with
simple interfaces that address safety
concerns – at an affordable price
• Need to provide more than portable devices
• Standardization is key to meeting goals and
offering latest technology in the car
• Simplicity and safety essential in vehicles,
even at expense of “gee-whiz” technology
• Industry must impose limits – or regulators will
• Risk of public backlash if safety not addressed
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Summing Up:
Keys to the U.S. Telematics Market
• Development of targeted services delivered
safely with low-priced (or free) interface
• Need to compete with other similar services
• Potential competition from telcos, etc.
• Consumers do not want multiple internet
accounts, e-mail addresses, phone
accounts/numbers
• OEM-Internet alliances may be answer
• Privacy could become increasingly important
• Key question: Why should the consumer
pay an automaker for these services?
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Automotive OEMs and Telematics:
Competing in an Open Market
• OEM service-focused strategy endangered
by open access, portable devices
• Europeans see handheld devices as key
• Safety/roadside aid services clearly appeal
• Voice contact essential in U.S. market
• Key test: Renewal rate for OnStar
• Costs of delivering such services will escalate as
subscriber base grows
• OEMs must get consumers to buy broader
range of services from them