Research And Markets recently added “Aftermarket Car Telematics” report that analyzes the latest developments on the market for applications such as stolen vehicle tracking (SVT), vehicle diagnostics, Wi-Fi hotspot, roadside assistance and convenience applications targeting consumers.
The findings of the report are as follows:
The connected car is a major trend in the automotive industry. After many years of development and false starts, car telematics has gained momentum and virtually all of the world’s leading car makers have launched mass-market services in key regions.
The OEM initiatives can be seen as competition for the aftermarket solutions, but there is still a growing demand for different forms of aftermarket car telematics services. Aftermarket telematics still has a dominant position on the market in many parts of the world.
Several categories of aftermarket car telematics applications have become popular including roadside assistance, stolen vehicle tracking (SVT), vehicle diagnostics, usage-based insurance, dealer and inventory management, Wi-Fi hotspot as well as convenience applications targeting consumers.
The addressable market for aftermarket car telematics solutions is significant. At the end of 2018, there were an estimated 1.12 billion passenger cars and light trucks registered worldwide. Even though aftermarket car telematics services face competition from smartphone-only solutions and OEM solutions, the publisher is of the opinion that the aftermarket car telematics market is in a phase of strong growth.
It estimates that total shipments of aftermarket car telematics systems reached almost 20.3 million units worldwide in 2018. Growing at a compound annual growth rate of 20.2 percent, the shipments are expected to reach 51 million units in 2023. The number of aftermarket car telematics systems in active use is forecasted to grow at a compound annual growth rate of 20.6 percent from 58.7 million in 2018 to 150 million worldwide in 2023.
The penetration rate will at the same time grow from 5 percent in 2018 to 12 percent at the end of the forecast period. The market is still in a relatively early phase with a great diversity of players interacting in a complex value chain that spans multiple industries.
The car telematics companies targeting the consumer aftermarket include specialists focusing on this application area only as well as general telematics players that serve a broad range of applications including also for example fleet management for commercial vehicles.
The leading aftermarket car telematics solution providers have reached installed bases in the millions. Examples of leading car telematics solution vendors include Octo Telematics, Spireon, Ituran, Mojio, Scope Technology, CalAmp (LoJack), Bright Box, Viasat Group and Vodafone Automotive. The most common go-to-market strategy includes partnering with insurance companies, dealers, OEMs, MNOs and vehicle finance companies. Leading companies delivering telematics hardware and related services to the car telematics market include Danlaw, Xirgo Technologies, Gosuncn, MobileDevices, Queclink and Teltonika.
Stolen vehicle recovery and security-related telematics applications are mature aftermarket car telematics applications whereas other direct-to-consumer car telematics solutions have more recently started to emerge. Regional market conditions such as a high level of vehicle crime influence the demand for stolen vehicle tracking and have made SVT solutions popular in countries such as Brazil, Argentina, China, Israel, Russia and South Africa. Leading SVT companies include CalAmp (LoJack), Cesar Satellite, Ituran, Octo Telematics, Tracker Connect, Netstar and Pointer Telocation. The number of dedicated active aftermarket SVT units in use is forecasted to reach 51.2 million in 2023, up from 33.3 million at year-end 2018. The SVT market is anticipated to be influenced in the long term by the introduction of OEM telematics that in many cases will include this functionality.
During the past years, several mobile operators have launched car telematics solutions as apart of a broader consumer IoT strategy. Deutsche Telekom has for instance partnered with Mojio to launch branded connected car services in various markets. Verizon, AT&T, Sprint, Vodafone, Telefnica and many others have also explored the car telematics vertical during the past few years. Direct-to-consumer car telematics offerings are available to a varying degree in many regions globally by companies such as Zubie, Automatic labs (SiriusXM), Vyncs (Agnik) and Autobrain. Many direct-to-consumer car telematics providers have broadened their product portfolios to include additional telematics application areas such as fleet management as well as powering B2B2C telematics services.
Source: http://www.researchandmarkets.com
