21.12.2018 Views

Automotive Telematics Market: Size, Share, Growth Drivers, Trends & Challenges

According to Goldstein Research global automotive telematics market report; about 28% of new car customers prioritize car connectivity features over other conventional car features such as engine power or fuel efficiency, and 13%in developed countries would not even buy a car that is not connected to the internet today.“Global Automotive Telematics Market Outlook, 2016-2024” covers the present ground scenario and future opportunity prospects for the market players to analyze the target markets across the globe.

According to Goldstein Research global automotive telematics market report; about 28% of new car customers prioritize car connectivity features over other conventional car features such as engine power or fuel efficiency, and 13%in developed countries would not even buy a car that is not connected to the internet today.“Global Automotive Telematics Market Outlook, 2016-2024” covers the present ground scenario and future opportunity prospects for the market players to analyze the target markets across the globe.

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Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

Report Code :CHM 1025<br />

2016-2024<br />

Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Outlook 2024: Global Opportunity & <strong>Growth</strong><br />

Analysis, 2016-2024<br />

Download Full Sample<br />

Report<br />

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Published By: Goldstein Research


1. Executive Summary<br />

XX%<br />

CAGR: (2016-2024)<br />

Fig: 1-1 Global <strong>Automotive</strong> <strong>Telematics</strong><br />

<strong>Market</strong> <strong>Size</strong> USD (Billion). 2016-2024<br />

Fig: 1-2 Global <strong>Automotive</strong> <strong>Telematics</strong><br />

<strong>Market</strong> <strong>Share</strong> (%), By Region-2016-2024<br />

Download Full Sample<br />

Report<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

2016<br />

XX%<br />

XX%<br />

2024<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f<br />

Source: Goldstein Research<br />

In 2016, Smartphone Integration accounted for the<br />

highest market share XX% in Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong><br />

North America Europe Asia Pacific Latin America Middle East & Africa<br />

Source: Goldstein Research<br />

With XX% share in 2016, North America region<br />

dominated the Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong><br />

Fig: 1-3 Global <strong>Automotive</strong> <strong>Telematics</strong><br />

<strong>Market</strong> <strong>Share</strong> (%), By Telematic Devices-2016<br />

Fig: 1-4 Global <strong>Automotive</strong> <strong>Telematics</strong><br />

<strong>Market</strong> <strong>Share</strong> (%), By Communication Type-2016<br />

Fig: 1-5 Global <strong>Automotive</strong> <strong>Telematics</strong><br />

<strong>Market</strong> <strong>Share</strong> (%), By Application-2016<br />

Infotainment<br />

XX%<br />

Smartphone<br />

Integration<br />

XX%<br />

In-Vehicle<br />

XX%<br />

XX%<br />

Stolen Vehicle<br />

Tracking<br />

XX%<br />

XX%<br />

Embedded<br />

Devices<br />

Tethered<br />

Devices<br />

XX%<br />

XX%<br />

Vehicle-to-<br />

Infrastructure<br />

Vehicle-to-Vehicle<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

Fleet Management<br />

E-Call and roadside<br />

Assistance<br />

Vehicle Diagnostics<br />

Source: Goldstein Research<br />

Source: Goldstein Research<br />

Source: Goldstein Research<br />

Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

Key Findings<br />

• The global automobile telematics market size is expected to reach USD XX billion by 2024, from an estimated USD XX<br />

billion in 2016, growing at a CAGR of XX% during 2016-2024 owing to hold great opportunities for players in<br />

telecommunications, insurance, and the automobile industry, also telematics technology is changing automobile fleet<br />

management for the better by substantially reducing waste with data-enabled trucking management. It is estimated that<br />

many trucks idle for XX hours per day, costing anywhere between USD XXX and USD XXX a year in wasted fuel per truck<br />

while around XX million drivers spend XXX hours completing paper logbooks<br />

• The fleet management market size is estimated to grow from USD XX billion in 2016 to USD XX billion by 2024, at a CAGR of<br />

XX% during the forecast period. Fleet management services and solutions are being offered by companies such as<br />

Samsung, Intel, Volvo, Verizon, AT&T, TomTom, Vodafone, Telefonica, IBM and CISCO. These solutions have increasing<br />

reliance on LIDAR, RADAR & LTE, cameras, contextual awareness with the objective of collision avoidance and<br />

integration/convergence of safety and infotainment systems while most of these system have complex software<br />

Increasing<br />

demand for<br />

integrated<br />

wireless<br />

communicati<br />

on systems<br />

Download Full Sample<br />

Report<br />

• Penetration of global integrated telematics to touch XX% for new cars by 2024, while that of tethered telematics to flatten<br />

around XX%, increase adoption of integrated telematics to be driven by growing importance of smartphones and<br />

regulations for driver safety and US to continue its lead with sales of approximately XX million new cars with embedded<br />

telematics by 2024<br />

• EU, Japan and BRIC nations present huge potential, primarily due to upcoming regulations. Providing in-car connectivity is<br />

going to be essential for every carmaker, but the industry is still looking for viable business models though the global<br />

telematics market is poised to grow exponentially in the future, with approximately XX million new cars expected to have<br />

some form of connectivity by 2024<br />

Information and<br />

navigation<br />

Government<br />

regulations<br />

Expected Number of Connectivity Based Vehicles (Million), 2024<br />

APAC<br />

Latin America<br />

2014<br />

XXXX Million<br />

XXXX Million<br />

2016<br />

XXXX Million<br />

XXXX Million<br />

Increasing<br />

demand for<br />

real time<br />

information


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

4. Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion) & <strong>Growth</strong> Analysis<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

Fig:- 4-1 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion)-2016-<br />

2024<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

Fig:- 4-2 Global <strong>Automotive</strong> <strong>Telematics</strong> Y-O-Y <strong>Growth</strong> (%) Analysis-2016-<br />

2024<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

Download Full Sample<br />

Report<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX<br />

XX<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f<br />

Source: Goldstein Research<br />

XX%<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f<br />

Source: Goldstein Research<br />

• Global automotive telematics market is anticipated to expand at a compound annual growth rate of XX% during the<br />

forecast period i.e. 2016-2024. With the advancement in technology, the demand for connectivity is increasing<br />

everywhere. Vehicle telematics, trailer tracking, and container tracking are the common application areas of telematics.<br />

They are used to transform automobiles into communication objects. Earlier telematics were integrated only on<br />

premium vehicles; now it's either offered as standard feature on select vehicles, or as an option for the low-priced<br />

vehicles. It also enables patient's health tracking while travelling.<br />

• eCall project promoted by European Commission (EC) was adopted in Europe in 2013. eCall is targeted to provide<br />

assistance to motorists, who have met with road accident and are unable to speak due to injuries. It is applicable for<br />

the vehicles in which telematics is installed.


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

4.1. Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Overview, By Region and <strong>Market</strong><br />

Players-2016<br />

Fig:- 4-3 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong> (%), By<br />

Country, 2016<br />

Fig:- 4-4 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong> (%) , By<br />

Companies, 2016<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

North America<br />

Europe<br />

Asia Pacific<br />

Latin America<br />

Middle East & Africa<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

AT&T Inc<br />

Telefonica<br />

Telenor Connexion<br />

Download Full Sample<br />

BMW AG<br />

Report<br />

General Motors<br />

FCA Group<br />

Tesla Motors<br />

Airbiquity Inc.<br />

IBM<br />

Cisco<br />

Samsung<br />

Intel<br />

Volvo<br />

Verizon<br />

Bosch<br />

Delphi <strong>Automotive</strong><br />

Continental<br />

Source: Goldstein Research<br />

Source: Goldstein Research<br />

• North America is expected to remain the largest market with valuation of USD XX billion by 2024 with the CAGR of<br />

XX% over the forecast year due to increasing regulations and majority presence of telematics OEMs and service<br />

providers in this region.<br />

• <strong>Automotive</strong> telematics companies include Robert Bosch Gmbh, AT&T, Delphi <strong>Automotive</strong> Plc, Continental Ag, and<br />

Verizon <strong>Telematics</strong> are the major telematics suppliers in the global automotive telematics industry. Several automotive<br />

telematics suppliers are seeking mergers and acquisitions as strategic initiatives to drive growth.<br />

•However, privacy concerns and cyberthreats pose some challenges to its fast-paced growth. Overall, telematics is not<br />

just revolutionizing fleet and risk management, it has opened a new revenue stream for companies to cash on.


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

5. <strong>Market</strong> Dynamics<br />

<strong>Growth</strong> <strong>Drivers</strong><br />

<strong>Growth</strong> Barriers<br />

Government<br />

regulations<br />

regarding<br />

accidents and<br />

safety of road<br />

transportation<br />

Increased<br />

safety<br />

awareness<br />

Includes anything<br />

from GPS to<br />

navigation systems<br />

for automatic<br />

roadside assistance<br />

and remote<br />

diagnostics<br />

High error<br />

rates<br />

Breakdown in<br />

communication<br />

Download Full Sample<br />

Report<br />

Limited aftermarket<br />

support<br />

General Trend<br />

Highly Complex Moderately Complex Waived<br />

Connectivity


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

5.2. <strong>Market</strong> Restraints<br />

Limited Aftermarket Support and Cyber Security<br />

‣ One of the key challenges for an OEM to provide aftermarket support is the limited access they<br />

have to the vehicle. Any diagnostics or prognostics is possible only when the vehicle is taken to<br />

the service station for a scheduled service or repair. The error/fault code memory in electronic<br />

control units helps to some extent once the vehicle is in service station, but the whole support<br />

is constrained with lack access to vehicle parameters, limited expertise available in the service<br />

station, lack of knowledge of how the vehicle is used (driver behavior) etc.<br />

‣ Main challenges is that widespread customer acceptance of these programs is far from certain,<br />

especially since there has been concern and skepticism regarding privacy, and some drivers<br />

question how much they will be scrutinized. Half of the current driving population, is not open<br />

to the idea of a UBI—at least in the current market<br />

‣ <strong>Telematics</strong> trailblazers have been collecting massive amounts of data that can reveal driver<br />

behaviors, providing a basis for greater precision in underwriting and pricing, but these early<br />

adopters still face many challenges in executing a viable telematics program<br />

Fig: 5-3 Top 5 Countries Hosting Malware, 2016<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

Fig: 5-2 Top 5 Countries for Malware Redirects, 2016<br />

XX%<br />

Impact Analysis:-<br />

XX%<br />

Download Full Sample<br />

Report<br />

XX% XX% XX%<br />

XX%<br />

USA Canada Germany Netherlands China<br />

Source: Primary Source<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

• In places with no cellular coverage, the app, like other apps,<br />

will not work. One may come across dead spots in the<br />

countryside or traveling on the highway in such areas, the<br />

traffic and routing information will be unavailable until the<br />

user reaches an area of connectivity. In essence, if you can't<br />

check Facebook or use WhatsApp, then you can't get traffic<br />

alerts either<br />

• The company provides real-time traffic alerts through its<br />

website. Anyone can log on to the site and take advantage of<br />

alerts scrolled through a small window.<br />

XX%<br />

Source: Primary Source<br />

USA Russia France Germany Singapore<br />

Impact on Smart<br />

Transportation <strong>Market</strong><br />

High Medium Low


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

5.3. Global Smart Transportation <strong>Market</strong> Opportunity, 2016-2024<br />

Faster Networks<br />

Greater<br />

Smartphone and<br />

Tablet<br />

Integration<br />

Application<br />

Programming<br />

Interface<br />

Yard Navigation<br />

Source: Goldstein Research<br />

Fig: 5-4 12 <strong>Telematics</strong> <strong>Trends</strong> and Technologies<br />

Fig: 5-5 Thailand Road Accidents in Millions, 2015-2016<br />

XX Million<br />

2015<br />

Video<br />

Photo Reporting<br />

Direct<br />

Connections with<br />

Customers<br />

Social Media<br />

Integration<br />

OEM/Factory-Fit<br />

<strong>Telematics</strong><br />

Improved<br />

Prognostics for<br />

Vehicle<br />

Maintenance<br />

Addressing Hours<br />

of Service<br />

Compliance<br />

Adoption by<br />

Small Businesses<br />

XX Million<br />

2016<br />

In revenue terms, Goldstein Research estimates the overall<br />

market that will be three times larger in 2024 than it was in 2016,<br />

comprising<br />

‣USD XX billion from in-vehicle<br />

Download<br />

services,<br />

Full<br />

such<br />

Sample<br />

as traffic<br />

information, call centre support and web-based entertainment<br />

‣USD XX billion from the sale of hardware, Report such as telematics<br />

control units<br />

‣USD XX billion from the delivery of telematics services, such as<br />

customer relationship management<br />

‣USD XX billion from the provision of connectivity, such as<br />

mobile data traffic<br />

Fuelled in part by growth in the deployment of smartphone<br />

integration systems, in-car infotainment services, such as news,<br />

weather, social networking and music streaming, will be very<br />

popular, supported by XX million cars sold in 2024 compared<br />

with XX million in 2016<br />

<strong>Growth</strong> in navigation services is set to be slightly slower,<br />

shipping in XX million cars by 2024, compared with XX million in<br />

2016, according to the forecasts. Its is expected vehicle<br />

management applications, such as remote diagnostics and<br />

maintenance, to be supported by XX million cars sold in 2016,<br />

compared with XX million in 2015. Goldstein Research anticipates<br />

that these services, which rely on embedded systems, will not<br />

see the same level of demand from consumers as infotainment<br />

and navigation systems.<br />

Source: XXXX


5.4. Future Prospects of <strong>Automotive</strong> <strong>Telematics</strong><br />

Download Full Sample<br />

Report<br />

Source: XXXX<br />

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Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

5.5. Impact Analysis on the Basis of Latest <strong>Trends</strong> in <strong>Automotive</strong> <strong>Telematics</strong><br />

Download Full Sample<br />

Report<br />

<strong>Drivers</strong> of Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong><br />

Dataenabled<br />

trucking<br />

management<br />

XX%<br />

Fleet<br />

Management<br />

XX%<br />

Impact<br />

Analysis (on<br />

the basis of<br />

Latest <strong>Trends</strong><br />

Government<br />

Initiative<br />

XX%<br />

<strong>Telematics</strong>, an amalgamation of the words<br />

‘telecommunications’ and ‘informatics,’ refers to “the use of<br />

wireless devices and ‘black box’ technologies to transmit<br />

data in real time back to an organization. Typically, it's used<br />

in the context of automobiles .” The Internet of things (IoT),<br />

big data, analytics, and cloud computing are inherent<br />

features of the telematics ecosystem.<br />

The fleet management market size is estimated to grow<br />

from USD XX billion in 2016 to USD XX billion by 2024, at a<br />

CAGR of XX% during the forecast period. Fleet management<br />

services and solutions are being offered by companies such<br />

as Samsung, Intel, Volvo, Verizon, AT&T, TomTom, Vodafone,<br />

Telefonica, IBM and CISCO<br />

Real-time<br />

information<br />

XX%<br />

Usage-Based<br />

Insurance<br />

XX%<br />

In UK, the government is promoting the use of telematics<br />

technology to help organizations manage their fleets more<br />

effectively, thereby improving safety and efficiency. It is<br />

estimated that the benefits offered by the telematics<br />

technology would be able to save USD XX for every USD XX<br />

spent on telematics<br />

Companies such as Fleetmatics (acquired by Verizon),<br />

Teletrac Navman, MiX <strong>Telematics</strong> and Trimble are working<br />

with various government agencies<br />

Source: Goldstein Research


6.1. Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong>(%) - By Product Type,2016-2024<br />

Fig: 6-1 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong>, By Communication Type,<br />

2016-2024<br />

XX%<br />

XX%<br />

2016<br />

Source: Goldstein Research<br />

XX%<br />

In-Vehicle<br />

Vehicle to<br />

Infrastructure<br />

Vehicle-to-<br />

Vehicles<br />

XX%<br />

XX%<br />

2024<br />

Fig: 6-2 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion), By<br />

Communication Type-2016-2024<br />

XX%<br />

Key Findings<br />

•By 2024, we expect the connectivty-related revenues share to<br />

increase moderately to approximately XX percent in the global<br />

premium car segment. This amounts to a global market size of USD<br />

XX billion to XX billion for car connectivity in 2024.<br />

Download Full Sample<br />

• The total shipments of OEM embedded telematic devices<br />

accounted for more than XX million units across the globe in 2016.<br />

Report<br />

The shipments are expected to reach XX million units by 2024 with<br />

compound annual growth rate of XX%. Further, Penetration of<br />

global embedded telematics to touch XX% for new cars by 2024,<br />

while that of tethered telematics to flatten around XX%.<br />

•Global annual industry revenues from connectivity are expected<br />

to increase sixfold from approximately USD XX billion in 2016 to<br />

approximately USD XX billion in 2024. Upfront connectivity<br />

hardware revenues are expected to remain the single largest<br />

source of revenues globally.<br />

Fig: 6-3 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Y-O-Y <strong>Growth</strong>, By<br />

Communication Type, 2016-2024<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

2016 2024<br />

In-Vehicle Vehicle-to-Infrastructure Vehicles-to-Vehicles<br />

Source: Goldstein Research<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f<br />

Y-o-Y<br />

Source: Goldstein Research<br />

Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com


6.1.1. Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong>, 2016-2024<br />

Fig:- 6-4 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion)-2016-<br />

2024<br />

Fig:- 6-5 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Y-O-Y <strong>Growth</strong> (%) Analysis-<br />

2016-2024<br />

XX<br />

XX%<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

Download Full Sample<br />

Report<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX<br />

XX<br />

XX<br />

2016 2017 2018<br />

Source: Goldstein Research<br />

2019 2020 2021 2022 2023 2024<br />

• Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> was USD XX billion in 2016,<br />

expected to attain the growth rate of XX% over the forecast period<br />

and reach USD XX Billion by 2024. The selected leading<br />

manufacturers, which account for XX% of the total automotive<br />

telematics market, achieved a growth rate of XX% in 2016.<br />

• North America dominates the automotive telematics owing to the<br />

largest advanced telematics developer economics closely followed<br />

by Europe with XX% market share in global automotive telematics<br />

market.<br />

•Our survey among car importers, car dealers, leasing companies<br />

and insurance companies reveals that XX% of them already has<br />

connected cars that generate data.<br />

XX%<br />

Source: Goldstein Research<br />

APAC<br />

Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

XX%<br />

XX%<br />

XX%<br />

2016 2017 2018 2019 2020 2021 2022 2023 2024<br />

Source: Goldstein Research<br />

Fig:- 6-6 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> by Major<br />

<strong>Automotive</strong> OEMs, 2016<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

North America<br />

Europe<br />

Latin America<br />

Midlle East and Africa


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

6.3. Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Attractiveness and BPS Analysis by<br />

<strong>Telematics</strong> Devices, 2016-2024<br />

Fig: 6-7 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Attractiveness-By<br />

Telematic Devices, 2016-2024<br />

Fig: 6-8 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> BPS Analysis- By End<br />

Telematic devices, 2016-2024<br />

XX%<br />

100%<br />

XX%<br />

XX%<br />

XX%<br />

90%<br />

80%<br />

70%<br />

60%<br />

XX%<br />

XX%<br />

XX%<br />

Download Full Sample<br />

Report<br />

XX%<br />

XX%<br />

50%<br />

XX%<br />

40%<br />

30%<br />

XX%<br />

20%<br />

XX%<br />

XX%<br />

XX%<br />

10%<br />

XX%<br />

XX XX XX XX XX XX XX XX XX XX<br />

Smart Phone<br />

Integration<br />

Source: Goldstein Research<br />

Embedded Devices<br />

Tethered Devices<br />

0%<br />

2016 2024<br />

Smart Phone Integartion Embedded Devices Tethered Devices<br />

Source: Goldstein Research<br />

‣According to estimate, more than XX% new cars sold across the globe in 2016 were equipped with the embedded<br />

telematic systems. North-America is the mature market in terms of implementation of telematic systems in cars with<br />

attach rate of XX% closely followed by Europe with XX%. China has emerged as high potential market for automotive<br />

telematics with attach rate of rate of about XX%.<br />

‣According to Goldstein Research forecasts that there will be XX million actively connected cars on global roads by 2024.<br />

The combination of new car features and aftermarket devices could mean nearly XX billion connected cars on the world’s<br />

roadways by 2024. US to continue its lead with sales of approximately 16 million new cars with embedded telematics by<br />

2025 . EU, Japan and BRIC nations present huge potential, primarily due to upcoming regulations.


6.4. Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong> (%), 2016 & <strong>Market</strong> <strong>Size</strong> (USD<br />

Billion), By Region,2015 & 2016<br />

Fig: 6-9 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong> (%) - By<br />

Region, 2016<br />

Fig: 6-10 Global <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion) - By<br />

Region, 2015-2016<br />

XX<br />

XX<br />

XX%<br />

XX%<br />

XX%<br />

XX<br />

XX<br />

XX<br />

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Report<br />

2015 2016<br />

XX<br />

XX%<br />

XX%<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

North America Latin America Europe Asia-Pacific Middle East & Africa<br />

Source: Goldstein Research<br />

XX<br />

APAC North America Europe Latin America Middle East &<br />

Africa<br />

Source: Goldstein Research<br />

• For embedded solutions, the short-term growth in many markets such as Europe, Brazil and Russia will be caused<br />

primarily by government legislation, whilst the other two triggers (shared data plans and web-based Apps) will play a<br />

strong role in ensuring that embedded solutions become ubiquitous in the long-term future. Sales of Integrated<br />

solutions are forecast to grow rapidly over the next ten years as a reflection of the growing importance of smartphones<br />

and Apps. It is expected that within a decade the fitment of these solutions on new passenger cars will almost reach<br />

100% by 2020 in markets such as USA and China.<br />

•The automotive industry is at different stages of growth across geographies. But given the market dynamics,<br />

automotive OEMs will, sooner rather than later, embrace telematics fully across markets. Irrespective of the challenges<br />

hovering on the horizon, information technology service providers have ample opportunities to create a leadership<br />

position in this space through multiple technology and domain offerings.<br />

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Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

7.1. North-America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion) & Y-O-Y<br />

growth (%),2016-2024<br />

Fig: 7-1 North-America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong>(USD<br />

Billion)-2016-2024<br />

XX<br />

XX<br />

XX<br />

XX%<br />

CAGR: (2016-2024)<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

XX<br />

Fig: 7-2 North-America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Share</strong> By<br />

Telematic Devices, 2016-2024<br />

XX%<br />

XX%<br />

Smartphone<br />

Integration<br />

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Report<br />

XX%<br />

2016 XX%<br />

Tethered<br />

2024<br />

Devices<br />

XX%<br />

XX%<br />

Embedded<br />

Devices<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2023f 2024f<br />

Source: Goldstein Research<br />

Fig: 7-3 North-America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD<br />

Millions), By Country-2016-2024<br />

Source: Goldstein Research<br />

Fig: 7-4 North-America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (%), By<br />

Telematic Devices Type-2016-2024<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

2016 2024<br />

U.S.<br />

Canada<br />

Source: Goldstein Research<br />

2016 2024<br />

Smartphone Integration Embedded Devices Tethered Devices<br />

Source: Goldstein Research


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

7.1.1. U.S. <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion) & Y-O-Y growth (%),<br />

2016-2024<br />

Fig: 7-7 U.S. <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> <strong>Size</strong> (USD Billion). 2016-2024<br />

Fig: 7-8 U.S <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Y-O-Y <strong>Growth</strong> Rate, 2016-<br />

2024<br />

XX<br />

XX%<br />

CAGR: (2016-2024)<br />

XX<br />

XX<br />

XX% XX% XX%<br />

XX%<br />

XX%<br />

XX% XX% XX% XX%<br />

XX<br />

XX<br />

XX<br />

XX<br />

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Report<br />

XX<br />

XX<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f<br />

2016e 2017e 2018f 2019f 2020f 2021f 2022f 2023f 2024f<br />

Source: Goldstein Research<br />

Source: Goldstein Research<br />

Y-o-Y<br />

• In the United States, total telematics unit sales—including both OEM installed and aftermarket—accounted for XX<br />

million units in 2015, up XX percent from XX million in 2012. The total then will climb to XX million in 2017.<br />

•The United States is the leader in telematics deployment due to efforts from GM, which has been the principal force in<br />

telematics deployment for a decade. GM’s decision to make OnStar a standard feature on all models as of 2009 has put<br />

pressure on its competitors to enter the telematics market. Until now, BMW and Mercedes were the only other OEMs<br />

to provide embedded telematics. However, their impact has been limited because they offer only luxury and premium<br />

vehicles<br />

•Two main driving forces—wireless connectivity demand by drivers and passengers, as well as the auto manufacturers’<br />

need to wirelessly connect to the digital car capabilities—will drive the telematics industry in the next decade. In<br />

comparison, sales from OEM embedded telematics are projected to grow from nearly 2.5 million systems in 2009 to just<br />

over 12.4 million units in 2017, equating to a CAGR of 22.2 percent.


7.1.2. Global Internet Penetration (2016)<br />

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Report<br />

XX% are using or would like to use a<br />

recovery tracker for stolen vehicles.<br />

XX% are interested in in-car e-<br />

learning or educational services<br />

while XX% are willing to adopt<br />

telematics<br />

In-car technologies Preference among drivers in emerging economies, Primary Research, 2016<br />

XX%<br />

People are using in-car<br />

technology<br />

People think they are<br />

spending much<br />

XX% are already using in-car search<br />

and point-of-interest (PoI) services,<br />

or are interested in doing so<br />

XX%<br />

People are willing to<br />

use infotainment<br />

services<br />

XX%<br />

XX%<br />

People they are willing<br />

to pay more for<br />

enhanced services<br />

XX%<br />

Source: Goldstein Research<br />

people are not<br />

satisfied with present<br />

services<br />

XX%<br />

Source: Goldstein Research<br />

people are reluctant to<br />

pay extra charges for<br />

subscription<br />

50% of drivers are already using<br />

connected track information—and<br />

only 6 percent are not interested in<br />

it<br />

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Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

7.2. North America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Attractiveness and BPS<br />

Analysis - By Country, 2016-2024<br />

Fig: 7-5 North America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> Attractiveness-By<br />

Country, 2016-2024<br />

Fig: 7-6 North America <strong>Automotive</strong> <strong>Telematics</strong> <strong>Market</strong> BPS Analysis- By<br />

Country, 2016-2024<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

Download<br />

XX%<br />

Full Sample<br />

Report<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX%<br />

XX XX XX XX XX XX XX<br />

XX%<br />

2016 2024<br />

Source: Goldstein Research<br />

US<br />

Canada<br />

US<br />

Source: Goldstein Research<br />

• US OEM telematics unit sales or total connected vehicle sales within this country are forecast to grow from nearly<br />

XX million units in 2016 to just over XX million units in 2024 for a CAGR of over XX%. On a country-wide scale, this<br />

means by 2017 more than XX% of vehicles will be connected. By 2024, this percentage will rise to over XX%,<br />

meaning nearly every new car in the United States will be connected. By 2025, the biggest market for embedded<br />

telematics is forecast to be China, led by an overall intensive growth within the car market and an expected<br />

aggressive government strategy towards telematics in the car.<br />

• Embedded device telematics currently boast a take rate of nearly XX% and are expected to reach almost XX% by<br />

the end of the forecast period. At that point, OEM hybrid telematics will also have surpassed XX% because most<br />

vehicles are expected to feature an embedded and a mobile-based solution to keep drivers connected on the go.<br />

The reliance on only one type of solution, embedded vs. Integrated device telematics, is no longer sustainable at<br />

that point and most OEMs will follow the trend of offering both types of connections.<br />

Canada


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9.1.1. Cisco Systems (Company Overview)<br />

Founded<br />

1984<br />

Employees<br />

72,385<br />

Headquarters<br />

U.S.<br />

Website<br />

www.cisco.com<br />

Download Full Sample<br />

Report<br />

Company Overview<br />

Key Products<br />

• Cisco Systems, Inc. is an American multinational technology conglomerate<br />

headquartered in, California<br />

• The Company operates through three geographic segments: Americas; Europe, the<br />

Middle East and Africa (EMEA), and Asia Pacific, Japan and China (APJC).<br />

• Cisco Systems Inc. is traded on Nasdaq stock exchange, America<br />

• The company also provides software solutions to various enterprises and it is one<br />

of the leading technology company across the globe<br />

• The Company delivers its technology and services to its customers as solutions for<br />

their priorities, including cloud, video, mobility, security, collaboration and<br />

analytics.<br />

Wireless Systems<br />

Data Centre<br />

Next Generation Network<br />

Enterprise Software<br />

Security Software<br />

Cloud Services<br />

Business Strategy<br />

• Acquisition and Investment Strategy: The company is focusing towards the expansion of its product portfolio by acquiring technology companies<br />

such as App Dynamics, Worklife, ContainerX, Inc., Cloud Lock Inc., Synata, Cliqr Technologies, Jasper Technologies, Acano Limited and many more.<br />

Prior acquisitions have resulted in a wide range of outcomes, from successful introduction of new products and technologies. Company make<br />

investments in privately held companies that develop technology or provide services that are complementary to their products. The company also<br />

pursues strategic alliance with other technology companies such as Microsoft Corporation, Intel Corporation, IBM, Oracle Corporation, Tata<br />

Consultancy Services and other to enhance the production of the industry


Revenue (USD Billion)<br />

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9.1.2. Cisco Systems (Financial Analysis & Revenue Recognition)<br />

Fig :- 9-1 Cisco Systems Inc. - Revenue (USD Billion), 2014-2016<br />

Key Takeaways<br />

XX<br />

XX<br />

XX<br />

• Revenue from the Americas decreased by USD 244<br />

Million in FY 2016 and EMEA revenue decreased by<br />

USD 41 Million, owing to a product revenue decline<br />

in Global<br />

• Revenue in Asia-Pacific segment increased USD 371<br />

Million in FY 2016, due to product revenue growth<br />

in China<br />

• The company achieved high revenue growth of 22%<br />

from China, 18% from India and 3% from Mexico.<br />

• The service provider market of the company<br />

decline, although the company experience solid<br />

product revenue growth in commercial market<br />

Source: Annual Report<br />

2014 2015 2016<br />

Table No :- XX<br />

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Report<br />

Key Financials 2015 2016<br />

Operating Margin XX% XX%<br />

Net Profit Margin XX% XX%<br />

Debt to Asset XX XX<br />

<strong>Market</strong> Capitalization USD XX Billion USD XX Billion<br />

Source: Google finance, Morningstar, YCharts


Copyright All Rights Reserved, Goldstein Research www.goldsteinresearch.com<br />

9.1.3. Cisco Systems (Revenue Split), By Business Segments & Geography<br />

Fig :- 9-2 Cisco Systems Inc.- Revenue (%)-By Business Segment, 2016<br />

Fig :- 9-3 Cisco Systems Inc.-Revenue (%)-By Geography, 2016<br />

24%<br />

Product<br />

15%<br />

Americas<br />

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25%<br />

60%<br />

Europe, Middle<br />

East & Africa<br />

76%<br />

Service<br />

Asia-Pacific<br />

Source: Annual Report<br />

Source: Annual Report<br />

Recent News & Developments<br />

• January, 2017: Cisco Systems Inc. acquired App Dynamics Inc., U.S. based application performance management and IT operation analytics<br />

company. This acquisition improves company’s application and business performance. Cisco will be able to provide customers with intelligent<br />

insights to improve business performance<br />

• October, 2016: Cisco Systems Inc., acquired Heroik Labs, enterprise software startup which makes the Worklife business productivity software.<br />

This acquisition expand the product portfolio of the company and enhanced its business solution segment<br />

• August, 2016:.Cisco Systems Inc. acquired Container X, Inc., world’s first multi-tenant container platform. Containers provide an easy, flexible<br />

way to build, test, deploy, and move applications across a variety of environments, including public clouds, private clouds and hybrid<br />

environments. This acquisition improves the global position of the company with the advanced and emerging container technology


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