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Mobile Operators Go after the Connected Car Opportunity Cellular Telematics Value Chain, Business Models and Market Forecast

Published By :

Pyramid Research

Published Date : Mar 2014

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No. of Pages : N/A

Telematics is one of the most dynamic and fastest growing segments of the cellular machine-to-machine market, which itself will take a growing portion of all cellular subscriptions, increasing from 2.3% in 2012 to 6.8% in 2018. Regulations are a key market driver, but competition and innovation in the insurance and OEM segments are also important.

Despite differences between the telematics service markets of OEMs, insurance companies and aftermarket providers, we expect to see increased partnerships and collaboration between these segments as the car’s network connection is used for a range of different services. Operators must also adapt their models to local market dynamics, especially given the variety of factors affecting telematics demand, ranging from income levels, rates of car theft rates and drivers’ expectations to the availability of smartphone apps.

Pyramid Research has identified four key approaches operators can take to expand their presence in the telematics value chain and thus their share of it:

1. They can become telematics service providers, as Verizon has done through its acquisition of Hughes Telematics.

2. Operators can offer flexible billing, so that telematics access and services can be charged to a phone bill.

3. To be able to plan and deploy services better, operators can develop or partner for systems integration capabilities.

4. Operators can leverage their brands and channels to sell telematics services directly to end users.

In Mobile Operators Go after the Connected Car Opportunity, Cellular Telematics Value Chain, Business Models and Market Forecast,’ Pyramid Research examines the cellular telematics value chain, analyzes the different business models and provides market forecast for the telematics industry globally. The report looks at the various market drivers and how they differ between regions and especially between emerging and developed markets; it also examines the main types of telematics applications, such as navigation, emergency services, diagnostics PAYD and PHY insurance, and stolen vehicle recovery. focusing on the opportunities for MNOs to expand their role. Examples from around the globe are provided throughout, including of AT&T (in the US), Vodacom (South Africa), GM OnStar (US), ERA GLONASS (Russia), eCall (Europe), Volvo, Insurethebox (the UK), Generali and Telefónica (Spain), and the CONTRAN regulations (Brazil).
Table of Content

Executive summary 

Section 1: Telematics services overview 
Market definition and overview 
Approaches to connecting cars 
Telematics value chain 
Types and positioning of telematics applications 
Examples of OEM services 
Examples of aftermarket services 
Examples of insurance services 

Section 2: Market drivers 
Telematics market drivers 
Regulations as a market driver: eCall 
Regulations as a market driver: CONTRAN 
Regulations as a market driver: ERA GLONASS 
Advantages of cellular connectivity as a market driver 
Telematics and vehicle insurer business model 
Telematics as a differentiator for OEMs 

Section 3: Operator approaches 
M2M market opportunity for mobile network operators 
Telematics M2M opportunity for mobile network 
The MNO role in the M2M value chain 
MNOs and the telematics value chain 
MNOs in the telematics value chain: Connectivity only 
MNO telematics business models beyond connectivity 
MNO telematics business models: Service provision 
MNO telematics business models: System integration 
MNO telematics business models: Channels 
MNO telematics business models: Billing 

Section 4: Market forecasts 
Global forecast 
Regional breakdown 
Forecasts by segment 
North American market 
European market 
Latin American market 
Africa & Middle East market 
Asia Pacific market 
Pyramid Perspective 
Pyramid perspective 
Companies mentioned 
Sources and related research 
About Pyramid Research 

List of Table

Cellular M2M telematics devices 
Embedded (by OEMs — car manufacturers)
Cellular M2M telematics service positioning 
Examples of OEM services 
OnStar service subscriptions 
OnStar service subscription growth and milestones 
Wireless car company ownership overview 
Examples of aftermarket services 
The RAC’s black box 
Examples of insurance services 
State farm sample discounts * 
Growth of insurethebox policies 2010-2013 
Total cellular M2M subscriptions market forecast, 2012 - 2018 
eCall status by country 
CONTRAN 245 implementation timeline for all new vehicles in brazil 
ERA GLONASS regional infrastructure development 
Positioning of M2M applications by mobility and bandwidth requirement 
Insurethebox savings survey information 
Passenger car fleet by region, 2011 - 2018 
insurethebox savings survey information 
Passenger car fleet by region, 2011 - 2018 
Cellular M2M as a percentage of all mobile subscriptions by region, 2011 - 
Global mobile subscriptions breakdown, 2013 
Global mobile M2M subscriptions breakdown, 2013 
Telematics value chain 
Porto Seguro focuses on bundling and loyalty 
Operator approaches for moving up the telematics value chain 
Telematics value chain 
Verizon telematics product portfolio 
Vodafone – Towers Watson implementation methodology 
Sprint velocity connect overview 
AT&T drive: a modular platform with a range of partners 
Telematics value chain 
Vodacom South Africa M2M subscriptions 
Portion of Verizon postpaid retail subscriptions on Share Everywhere plan 
Single bill, n-device access and policy management 
Flexible and split billing is fundamental to AT&T’s partnership with GM OnStar 
Telematics active SIMs, 2012-2018 
Telematics SIMs as percentage of all M2M SIMs and passenger vehicle 
Active telematics SIMs by region, 2012-2018 
Telematics active SIM penetration of passenger car fleet, 2012 and 2018 
Telematics active SIMs, 2012-2018 
End-user telematics revenue by segment, 2012-2018 
Active telematics SIMs in north America by segment, 012-2018 
North America telematics connect revenue by segment, 2012 2018 
Active telematics SIMs by segment in Europe, 2012-2018 
Europe telematics connect revenue by segment, 2012, 2018 
Africa & Middle East active telematics SIMs by segment, 2012-2018 
Asia Pacific telematics active SIMs by segment, 2012-2018 
Asia Pacific connect revenues by segment, 2012-2018 

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