Market drivers and technical requirements for stolen vehicle tracking (svt)

Market drivers and technical requirements

for Stolen Vehicle Tracking (SVT)

Telematics@China Tour Shenzhen

Stephen Longden

Specialist ~ ITS & Telematics

21 September 2010

Bridging the gap between the

automotive industry

and the real world

Telematics & ITS

Security

Low Speed Impact

Improving society

Reducing the cost of ownership

Technical research

End customer surveys & analysis

Program management and

product development

Market intelligence

Strategic business planning

Independent testing & benchmarking

Some of our customers

Stolen vehicle tracking and theft trends

Theft trends Requirements for SVT Market for SVT

Theft trends Requirements for SVT Market for SVT

Car theft has decreased by nearly 50% across Western Europe in the last 8 years

Whilst casual theft has decreased, thefts by

organized criminal networks have increased

Newer cars from prestige German manufacturers are the preferred target of professional

thieves throughout Europe

Key theft is the most popular method to steal newer vehicles

Sophisticated theft methods will continue to be developed but used in a relatively small % of cases

Crypto transponders can be copied

Academic research into encryption

Relay attack on smart key systemsSpecific attacks (eg: CAN bus)

Some thieves have adapted their theft methods in anticipation of SVT fitment

Car theft in Europe is

decreasing

Professional thieves

target high value

vehicles

Key theft is a common

theft method for new vehicles

Criminals are now

anticipating SVT fitment

Theft trends summary:

Theft trends Requirements for SVT Market for SVT

Insurance requirements• The Insurance industry in Europe supports SVT through the

ratings concept.

• It demands SVT for expensive/high-risk vehicles (over approximately $50,000).

• It encourages voluntary fitment in non-luxury models through discounts to drivers. E.g.80% of theft insurance cost in Italy5% of total insurance cost in Netherlands, UK

In addition to the fitment of SVT system, insurers demand an active subscription to a SVT service provider.

Country: BelgiumAuthor: CEB/Assuralia

Country: UKAuthor: Thatcham

Country: SpainAuthor: Ctr.Zaragoza

Country: NorwayAuthor: FG

Country: PolandAuthor: PIMOT

Country: NetherlandsAuthor: SCM

Country: ItalyAuthor: CEI

There are 7 European countries that have published technical requirements for SVT

A top-level overview of the technical criteria shows the

requirements vary from country to country = this is a problem for vehicle manufacturers.

Requirement

Belgium

Assuralia

(CJ0 / CJ2)

Italy

CEI

(79-28)

Netherlands

SCM

(TT03)

Norway

FG

(Dec 2002)

Spain

C.Zaragoza (CG-CP-003)

UK

Thatcham (Cat 5 OE)

Ale

rts

Tow away / movement detection

Mandatory Optional Mandatory Optional Optional Mandatory

Automatic detection of unauthorised starting (driver identification)

Mandatory (Integrated

systems only)

Mandatory (with separate detection for

coercion)

Mandatory (Class 5

systems only) Not specified Optional Mandatory

Tec

hn

ical

Independent power supply (battery backup)

0.5 hours (full active)

Mandatory (capacity not

specified)

5 hours (full active)

For ‘short’ battery discon-

nection only Not specified

8 hours (full active)

Location update period during live tracking

Max. interval 30 seconds Not specified

Max. interval 30 seconds Not specified Not specified

From 10 to 60 seconds

Remote immobilisation by control centre command (Ignition off)

CJ0 = Not allowed

Mandatory Optional Optional Mandatory (Interactive

systems only) Mandatory

CJ2 = Mandatory

Inst

all &

T

esti

ng

Able to withstand attack testing

5 minutes Not currently

required 5 minutes

No testing performed

Not locatable in <30 minutes

2 minutes

Testing performed to check tracking ability

Yes (road test)

Not currently required

Yes (road test)

No Yes

(road test) Yes

(road test)

Covert installation of antennas

Mandatory Mandatory Mandatory Mandatory Mandatory Mandatory

Co

vera

ge

&

Co

ntr

ol c

entr

e

Tracking possible throughout Europe Mandatory Not specified Mandatory

Scandinavia as minimum Mandatory Not specified

Control centres and staff to meet specific standards

Mandatory Mandatory Mandatory Must operate 24 hours and have back-up

Not specified Mandatory

Delay to control centre action (for driver identification only)

Maximum 120 seconds

Not specified Maximum

120 seconds Not specified Not specified Not specified

Vehicle unit ‘health check’

Mandatory (monthly)

Not specified Mandatory (monthly)

Vehicle power supply test

Not specified Mandatory (monthly)

Control centre operates password authentification system

Mandatory Not specified Mandatory Not specified Mandatory Mandatory

Complex!

Seven European countries have SVT

requirements

The Dutch and UK

requirements are the

most influential

No significant

updates are expected

Difficult to comply with

all the requirement

s

Requirements for SVT summary:

Theft trends Requirements for SVT The future for SVT

Sales of SVT are forecast to fall 35% before recovering in 2012

A continuing shift from fitment of aftermarket

systems to OES and OEM systems is expected

Driven by OE fitment, sales of GPS-based systems are expected to continue gaining market share

What are the key threats to sales of aftermarket SVT systems?

Threats

PAYD insurance

eCall OE SVT & telematics

Threat: PAYD insurance

Threat: eCall

Threat: OE SVT and Telematics

OE SVT systems are expected to gain market

share

Systems using GPS

location will be favored by vehicle

manufacturers

Key threats to

aftermarket SVT include PAYD, eCall and OE SVT

Tough competition on price and functionality

The future for SVT summary:

Future for SVT ~ issues for vehicle manufacturers

• VMs will start to bundle SVT with their OE telematics products (eCall, bCall, connected navigation etc).

• VMs and their suppliers have to balance costs and benefits of different implementations for each telematics service. SVT systems require high levels of security and therefore cost Other telematics systems such as simple eCall boxes can be provided at

relatively low cost ($60)

• One universal system providing all telematics services is the key aim for VMs. However, providing secure data collection and delivery for SVT can add a

significant cost premium unless the requirements are considered at the very start of the development process.

What can be learnt from the Brazil experience?

What can China learn from the Brazil experience?

• Significant number of vehicle manufacturers have been caught unawares of the legislation:

Had to scramble to catch up and be able to deliver compliant vehicles in time

Developing solutions in a short time slot was expensive and difficult compared to proper long-term product development

• SBD recommends VMs and Tier 1s invest significantly in monitoring and understanding the legislative environment for each market. Both within China and for export markets.

Summary and SVT lessons for China• There are two major market drivers for SVT ~

Government legislation (e.g. Brazil) Demands from insurance industry

• Brazil shows need for VMs to monitor and understand each market’s legislative environment.

• Insurance industry in the West supports SVT and demands it for expensive vehicles and encourages voluntary fitment in non-luxury models through discounts.

• VMs are increasingly developing OE SVT as part of wider telematics offering Trade off between highly sophisticated and secure SVT systems and

cheaper and simpler telematics boxes.There are savings in designing a single box for all telematics applications

and including SVT at very start of design process

Summary and SVT lessons for China• AM SVT is already strong in Guangdong region where theft

is a particular concern. This is expected spread to other regions as car ownership continues to expand in China.

• Next phase will be OE SVT services from VMs in China.

• AM SVT suppliers may respond by developing other add-on telematics services. This trend towards AM telematics is already seen in the embedded AM navigation market.

• GPS is the only current technology option, however this may change if LoJack finally manages to enter the Chinese market.

www.sbd.co.uk

stephenlongden@sbd.co.uk

Know what tomorrow brings…