Pune, August 18, 2017 Telematics in India: Trends and Opportunities Presentation
2 20170818_Telematics_India2017_v01.pptx
Agenda
Telematics: An overview Brief overview of what is telematics and its significance in various sectors including automotive
1
Telematics market: Global and India Global market overview, India market overview including market characteristics, market structure and drivers
2
Trends and opportunities in India Key trends and characteristics of telematics ecosystem, potential opportunities for Indian players
3
3 20170818_Telematics_India2017_v01.pptx
Telematics is widely recognized as a game changer in many industries
TELEMATICS
HEALTH: Control of biological parameters (voltage, weight, heart rate ...) facilitating hospitalization or home health monitoring
SPORT: Management of trainings, efforts & performances of top athletes & amateurs
TELESURVEILLANCE: Detection systems to trigger an intervention in case of intrusion into premises or a remote immobilization for stolen vehicles
TRANSPORT AND LOGISTICS: Fleet management, visualization in real time of the progress of deliveries and anticipation of technical controls
AUTOMATIC DISTRIBUTION: Anticipation of shortages and maintenance plans, collection of data on consumption habits to adjust assortments and prices
OFFICE AUTOMATION AND INDUSTRY: Monitoring of proper functioning of equipment (e.g. air conditioners, elevators, conveyor belt) and information on supply needs or preventive visits (e.g. copiers, printers)
TRADE: Economical and flexible solution for fast cash credit card payments
ENERGY: Real-time monitoring of transport networks in order to detect leaks and control flows, immediate collection of actual consumption to ensure more accurate and flexible billings (e.g. water, gas and electricity)
ENVIRONMENT AND COMMUNITIES: Control of facilities, remote management (e.g. traffic lights, timestamps, public lighting) and emergency matters (e.g. flood management, pollution control, telesurveillance)
Telematics – contraction of telecommunication informatics - represent a real breakthrough as it enables not only to receive data but also to store and send it
By 2020, it is estimated that there will be 24 bn "connected objects" aside of 12 bn mobile connected devices
Source: GSMA, Press, Roland Berger analysis
Telematics – An overview
4 20170818_Telematics_India2017_v01.pptx
In automotive sector, telematics equipment offers a wide variety of features to help make the vehicle smarter
Telematics:
Telecommunications + Informatics
Proactive maintenance
Driver behavior
Journey analysis
Vehicle tracking
GPS and navigation
Accident recording
Accident notification
Vehicle theft tracking
Fuel management
Intra-fleet benchmarks
Vehicle diagnostics
Vehicle logbook
Mileage reporting
Internet connectivity
Services facilitated by telematics equipment in automotive industry
Source: Secondary research, Roland Berger
Telematics – An overview
5 20170818_Telematics_India2017_v01.pptx
Globally, the vehicle telematics market is valued at USD 39 bn in 2016 and is dominated by telematics for commercial vehicles
Global vehicle telematics market revenue, 2014 – 2022 [USD bn]
61%
Passenger vehicle
Commercial vehicle
38% 39%
62%
75
2021F 2016 2015 2019F
64
55
39
+17%
2020F
46
2018F
88
2017F
103
2022F 2014
28 33
40%
60%
61%
39%
63%
34%
65% 64%
32%
68%
35%
66%
36% 37%
> Global vehicle telematics market is
valued at ~USD 39 bn is 2016, it is
expected to grow at CAGR 17% to
USD 103 bn in 2022
> Global telematics market is
dominated by commercial vehicles
which account for nearly two thirds
of the total share
> In the passenger vehicle segment,
demand is driven by significant
usage in cab services and
increased penetration in medium
and high end passenger vehicles
such as Volkswagen, BMW, Audi
etc.
Global vehicle telematics market: Overview
Global telematics market
Source: Secondary research, Roland Berger
CAGR [%]
2017-22
16%
20%
added CV/PV slit and CAGR
6 20170818_Telematics_India2017_v01.pptx
EMEA dominates the global CV telematics market with a 38% share; APAC is expected to be the leading contributor by 2022
Global telematics market – Commercial vehicles
Global CV telematics market revenue, 2014 – 2022 [USD bn]
62
53
46
4034
3025
2219
2016 2014 2015 2020F 2017F 2018F 2019F 2021F 2022F
+16%
Revenue share by region, 2015 [%]
Americas
26%
36%
EMEA 38%
APAC
> CV telematics finds applications in various fields such as passenger safety and security, customer relationship management, business
services such as fleet management and tracking as well as private services such as navigation support to passengers
> EMEA accounts for the greatest share of the market – regulatory initiatives such as eCall Driver Safety project is a key driver
> APAC is the second largest market driven by countries such as China, Japan, India etc. – By 2022, APAC is expected to be the leading
contributor to global commercial vehicles telematics market
Global commercial vehicle telematics market: Overview
Source: Secondary research, Roland Berger
7 20170818_Telematics_India2017_v01.pptx
Key driver behind growth in CV telematics enables a greater value chain coverage….
Cov
erag
e
Transportation value chain
High
Low
New vehicle
sales
Fleet mgmt. Service/
repair
Spare part
sales
Rental Financial
services
Fleet/vehicle
operation
Coverage 2013 Coverage 2030
> Connectivity based solutions enable OEMs to understand their customers' needs and address them with tailored product and service offerings – OEMs need to strengthen
their aftersales business – Increased customer retention required
– Moreover OEMs are requested to serve growing customer demand – Extended support and user-specific products and services (e.g. remote diagnostics)
Enabler connectivity
Importance of truck connectivity
Profit pool coverage Connectivity solutions
Source: Roland Berger
Remote diagnostics
Load detection/ monitoring Performance analysis
Order management
Tacho management
…
Connectivity solutions
Global telematics market – Commercial vehicles
8 20170818_Telematics_India2017_v01.pptx
8
and enables OEMs to differentiate themselves and capture opportunities beyond vehicle sales
Truck OEM engagement/core business 2013 2030
> There is a higher engagement of OEMs along the value chain who are expected to market themselves as full-service providers
> Logistics providers will require extended services and tailored solutions such as fleet/vehicle operation models
> Logistics companies will focus on business contracting and operation of core routes – maintaining capacity/cost flexibility when contracting new business or facing demand volatility and business risks
100%
0%
Fleet/vehicle operation
Transportation business
New vehicles ("Iron & steel")
Financial services
Spare part sales
Fleet management
> Route execution
> Driver lease
> Vehicle lease
Transportation value chain
OEM engagement/ core business
Source: Roland Berger
OEM engagement along the transportation value chain – Outlook 2030
Rental
Service/repair
Global telematics market – Commercial vehicles
9 20170818_Telematics_India2017_v01.pptx
In India, the commercial vehicle telematics market is valued at USD 113 m in 2016 and expected to grow at CAGR 21% in 2017-22
India commercial vehicle telematics market revenue, 2014 – 2022 [USD m]
378
320
269
224
180
144
11390
72
2021F 2016 2015 2019F
+21%
2020F 2018F 2017F 2022F 2014
> The Indian commercial vehicle
telematics market constitutes 0.45% of
the global commercial vehicle
telematics market
> Market is expected to grow at CAGR
21% during 2017-22, driven by:
– Demand for cargo and vehicle
safety - increasing incidents of
large scale highway truck theft for
cargo and truck high-jacking
necessitates need for remote
monitoring
– Transit losses - transit losses
account for 10% of logistics cost in
India on top of fuel pilferage which
is also very common
– Evolving business models for
professionalized cargo
transportation (3PL, 4PL players)
– Policy support by government for
preventing accidents (monitoring
speed, driving pattern, etc.)
India commercial vehicle telematics market: Overview
Source: Secondary research, Roland Berger
Telematics market in India
added slide
10 20170818_Telematics_India2017_v01.pptx
CV telematics installed base in India is expected to grow at CAGR 25%, led by after-market segment and entry level solutions
1,383
293
+25%
2015 2022F
Telematics installed base ['000 units] Split of installed base
Type of fitment Type of solution
Split by region Split by industry
Aftermarket
80%
20%
OEM
31%
1%
68%
Mid tier
Entry level
High end
Others Tourism
3% Retail 11%
Pharma
12%
21%
Cold chain
27%
Courier
26%
South
North
West
East
13%
27%
28%
32%
Telematics penetration in CV market in India
Source: Secondary research, Roland Berger
Telematics market in India – Commercial vehicles
updated OEM/Aftermarket mix
11 20170818_Telematics_India2017_v01.pptx
The Indian market currently has various options catering to several price ranges, offered by both OEMs and after-market providers
CV telematics market: Range of FMS1)offerings
Increasing level of
services offered
Entry level
Mid-tier
High-end
Advanced services/
Enterprise level
1) Fleet Management Services
Basic driver management + Vehicle management +Transport management + Additional data services
+additional advanced services
> Used for basic fleet tracking
> Monitors vehicles to increase fleet
utilization and productivity
> Helps reduce cost of operations,
fuel and maintenance
> Used in several industries such as
logistics, oil & gas, manufacturing,
courier, cold chain, emergency
vehicles, etc.
> Assists in vehicle maintenance and
operations (fuel consumption,
remote fault diagnostics)
> Integrated with back office
platforms (routing/scheduling, ERP,
CRM)
> Wide range of monitoring and
analysis, from location,
maintenance, operations,
distribution management and
vehicle abuse
Source: Secondary Research
Backup
13 20170818_Telematics_India2017_v01.pptx
The competitive landscape is highly fragmented - top 3 account for nearly 60% of the total market
Telematics hardware market share in India [2015]
Arya Omnitalk
2%
Trimble
CMC Technology
Dhanus Technologies
13%
32%
6%
Others 35%
Efkon India
12%
Source: Secondary research, Roland Berger
Competitive landscape in CV telematics
> The competitive landscape can be split into four segments: large international players (e.g. Trimble), OEMs (e.g. Tata, Ashok Leyland, etc.), Indian non-OEMs (e.g. Goodsmover) and Chinese players (e.g. Concox)
> Large international players such as Trimble provide (high technology) complete solution to a variety of industries, including transportation. It caters to large corporate customers but not to mass market small fleet operators
> Indian non-OEMs cater to large public or private sector companies, offering customized solutions
> OEMs' share, although currently small, is expected to increase in order to maximize monetization potential in insurance, aftermarket, advertising, etc.
> Chinese players focus on low cost devices and primitive web solutions targeting smaller operators. They constitute a significant share by volume, but relatively smaller share by value
Telematics market in India – Commercial vehicles
(includes OEMs)
(subsidiary of Strabag, Austria))
updated – changed text and share
14 20170818_Telematics_India2017_v01.pptx
OEMs operating in India are entering partnerships with telematics players to offer integrated fleet management solutions for logistics
Telematics Systems
Source: Secondary Research, Roland Berger
Navigation
Real Time Tracking Geofencing SMS Alerts & Queries
Real Time Tracking Geofencing SMS Alerts
Real Time Tracking Geofencing SMS Alerts
Real Time Tracking Geofencing SMS Alerts & Queries
Real Time Tracking SMS Alerts
Fleet Management
Trip Management Driver Analysis Report Generation
Driver Analysis Report Generation
Driver Analysis Report Generation
Driver Analysis Report Generation
Safety & Security
Anti theft alerts
Anti theft alerts Collision Warning Systems in school buses
Anti theft Immobilizer Emergency SOS button Driver Assistance System
Anti theft alerts Fire Detection and Supression System for buses
Multi Drive Mode for driving assistance
Remote Unit Mgmt. Maintainence Reminders
Remote Diagnostics Maintenance Reminders
Maintenance Reminders
Vehicle Mgmt. Others
Mobile App connectivity Infotainment and Passenger Info System for buses
Infotainment and Passenger Info System for buses
Mobile App connectivity Infotainment and Passenger Info System for buses
Infotainment System for buses
Driver Analysis Report Generation
Maintenance Reminders Mobile App connectivity Infotainment System
Telematics market in India – Commercial vehicles
WGA - I had footnotes in these slides, eg. for bharat benz as this was a dealer solution, where are they?
NA – Added, double-checked discrepancy, they were missing in the source from where I had taken this slide
1)
1) Trident Trucking, dealer of Bharat Ben in Karnataka, has partnership with Ormat
16 20170818_Telematics_India2017_v01.pptx
Telematics ecosystem will involve diversified competencies…
Source: Roland Berger analysis
Distribution of the connected vehicle / device
Management of client relationship
Manufacturing of components and interface
Manufacturing of Intelligence /
OS Connectivity supply
Data processing Services providing
> Manufacturing of hardware: screens, control
interface, sound system, measuring elements,
modem, connected devices (embedded,
aftermarket or brought-in)
> Development of operating systems and
connected intelligence inc. HMI/ IVI1) (external
to core-car onboard computer)
> Distribution of connected vehicle or device
> Providing of
connectivity hardware
(simcard, Wifi etc.)
> Providing of connectivity
services (prepaid,
subscription…)
> Data analytics and knowledge generation:
local and central data storage, encryption,
enrichment, calculation
– Driver data
– Personalized cloud data
– Vehicle data
– Vehicle health status data
> Creation and commercialization of apps and
software
Telematics market in India – Trends and opportunities
WGA - This slide is not clear to
me pls explain
NA – The slide shows various competencies that will be required in the present/future to leverage telematics
They include
1)Manufacture of components (in vehicle connectivity devices) and associated interfaces
2) Development of OS and intelligence (off-vehicle devices such as sensors connected to environment and their underlying logic)
3) Connectivity supply includes hardware and associated services to leverage telecom technologies
4) Data processing and analytics
5) Providing services based on data collected from vehicle or 3rd party content providers
Other competencies include distribution of devices (could possibly be done by a different company) and management of client relationship which would include skills pertaining to customer lifecycle management 1) In-vehicle infotainment
17 20170818_Telematics_India2017_v01.pptx
… and greatly expand the playing field by bringing in new players
Traditional players New players
IT/INFRASTRUCTURE PROVIDERS OPERATORS
DEVICE MANU-
FACTURERS
INTERNET COMPANIES
IT SERVICE PROVIDER
SUPPLIERS
SPECIFIC SERVICES
Reach new customers and keep the control of
the client relationship
Major actors of the connected car environment
Consolidate position on intelligence systems, avoid
new entries…
Extend business to new usages…
Extend the connectivity and mobility way of life to new universes …
Reinforce the relationship with customers, optimize vehicle design and usage…
OEMs
Telematics market in India – Trends and opportunities
Source: Roland Berger analysis
18 20170818_Telematics_India2017_v01.pptx
The changing ecosystem will also lead to new alliances, roles and underlying principles
New
Alliances
> Insurance groups could team up with navigation and emergency call system providers to get access to driver data
> Network giants such as Google etc. could sponsor mobile internet access from the vehicle
New
Roles
> Automotive companies are becoming software developers
> Telecom companies are starting to see themselves as automotive suppliers for data transfer channels
> Hardware companies become analytics provider/operator, for example Octo Telematics
New speed,
new principles
> Automotive industry needs to realign itself – new cycles, partners ….
> IT industry development cycles are much faster than those of car manufacturers
Telematics market in India – Trends and opportunities
Source: Roland Berger analysis
Changes in the new ecosystem WGA - where is this from, what is
Octo Telematics
NA – Taken from the pdf document you had shared titled ' Who will drive the Connected car?' (page 13)
Octo telematics is one of the initial entrants into telematics insurance opportunities and have built solutions to help insurers and drivers by capturing data such as driving behavior, location, duration, contextual elements and crash impact information
19 20170818_Telematics_India2017_v01.pptx
At the same time, Indian telematics market is also evolving and several trends are emerging
Telematics market in India – Trends and opportunities
Non exhaustive Trends in Indian telematics market
Market trend Impact level Impact
Demand for cloud-based telematics 1
> Enable easier integration and efficient scalability by utilizing standalone devices which use cloud-based data
> Additionally offers huge space of data storage and reduces complexity
Favorable Government legislation 2
> Government has focused on multiple initiatives aimed at utilizing vehicle telematics which is expected to drive telematics market
– Key initiative: Plan to introduce fleet management in 400,000 buses by 2017
3 Increasing collaboration and partnerships
> CV OEMs are increasingly partnering up with telematics providers to offer integrated fleet management solutions
– Tata Motors has partnered with Microlise to provide solutions under Tata Fleetman platform
4 Focus on value added products
> Vendors are expected to introduce value added products to attract customers
– Telematics devices are expected to be equipped with speech recognition features to enable easy driving
Medium impact High impact
Source: Secondary research, Roland Berger
New slide
21 20170818_Telematics_India2017_v01.pptx
As a result, several opportunities open up; Indian players can leverage and monetize these to build successful businesses
Domain Potential opportunity description Sno.
2 Driver assistance and related services
(Services based on underlying product solutions)
IT services
(Supporting software/enabler solutions)
> Integration, management and maintenance of entire consumer information stack
> Cyber security solutions 3
Opportunities for Indian players [selection] Not exhaustive
Telematics market in India – Trends and opportunities
Source: Secondary research, Roland Berger
1 Connectivity solutions
(Product (largely hardware) focused)
> Providing hardware and software solutions which leverage various communication technologies and enable M2M1) communication
> Common applications include various ADAS sensors such as driver drowsiness detection, parking assist, lane departure warning systems, lane keep assist etc.
1) M2M – Machine-to-machine
WGA - what does this mean
concretly?
NA – Service offerings in the telematics market will either be based on data collected from vehicles/drivers or gathered from other 3rd party providers. Content providers are those 3rd party providers. For example, Facebook can be a content provider and provide my social media related data which can be leveraged to form a service that tells me which of my friends are nearby on my driving route. Similarly, Zomato can be a content provider and can tell me average ratings of various restuarants nearby on my driving route
Data processing and services
> Data analytics services to record various types of vehicle and driver data; some examples include
– Driver data including his preferences, condition, fatigue, behavior etc.
– Vehicle data including vehicle health, GPS location, position, speed etc.
– Data from vehicle environment such as traffic lights, weather etc.
> Formulation of service modules such as those pertaining to navigation, diagnostics etc.
Content providers
> Providing all relevant data (e.g. social, consumer preferences etc.) from users to vehicles
> Development and distribution of various services to different players in the playing field
Segregated growth areas into product (primarily hardware with some software), services and supporting software/enabler solutions
Added ADAS point in "hardware" side as it is largely sensor driven
22 20170818_Telematics_India2017_v01.pptx
Hardware is a fast-growing segment within telematics market with ~ 21% CAGR till 2022; connectivity solutions are a key component
Hardware market growth in India CV telematics[USD m]
3719
174
48
185
90
378
5
2015 2022F
Installation Hardware Services
+19.6%
+24.8%
+21.4%
CAGR
2015-22
> Hardware market is an important component of overall telematics market accounting for more than 50% of share in 2015
> It is expected to grow at CAGR 21% till 2022 to a total market size of USD 185 m within overall CV telematics market; separate potential within other segments such as PV, aircrafts etc.
> Hardware market includes on-board, off-board units and associated interfaces – both in-vehicle as well as those outside the vehicle
– Key examples of products include connected devices such as sensors and other devices including ADAS devices which enable machine-to-machine communication
> Compared to software, hardware complexity in Indian market is still evolving – growth in telematics has made hardware structure more complex and sophisticated which is expected to slow down overall market growth
Trends and opportunities – Connectivity solutions
Source: 6WResearch, Secondary research, Roland Berger
CV telematics market growth by hardware, services and installation costs
New slide to show market potential
Corresponding data was not available for PV telematics market in India and hence have considered only CV
23 20170818_Telematics_India2017_v01.pptx
M2M communication is paramount for telematics and presents an attractive growth opportunity for players
Opportunity in connectivity solutions
WiFi, Bluetooth DSRC
DSRC 3G, 4G, …
3G, 4G, … > A variety of technologies are leveraged for enabling
M2M communication
– DSRC for time sensitive and critical functions
– Commercial wireless technologies
– 3G/4G connectivity
> Significant potential exists for manufacturing and producing embedded systems, sensors and devices which leverage communication technologies to enable M2M communication
> Savari networks is one such company which produces hardware and software solutions
– It also produces road-side units which can be installed on traffic lights – it has equipped 11 intersections in Palo Alto which enable people to communicate with traffic lights
Comments
1) DSRC – Direct short range communications
Source: Nissan; RFID Centre; RITA; Roland Berger
Trends and opportunities – Connectivity solutions
New slide
24 20170818_Telematics_India2017_v01.pptx
Sensors market in India
Indian market for automotive sensors is highly fragmented; advanced sensor technologies represent a huge opportunity
> Chinese sensors and buzzer kits have flooded the Indian aftermarket for parking sensors
> Largest application of driving awareness sensors is in low-cost ultrasound based parking assist sensors, often coupled with warning buzzers
> No manufacturers exist for LIDAR, RADAR or Vision processing applications in India
> International manufacturers like Velodyne and SICK GmbH are looking to grow through lead users
– Velodyne HDL-32E LIDAR deployed in Hi Tech Robotic Systemz demo vehicle NOVUS
– SICK radar sensors used in Autonomous Nano built by TCS engineer Dr Roshy Jacob
Typical sensor price ranges in Indian aftermarket
Parking Sensor
Radar Sensors
Lidar Sensors
Infrared Sensors
2,700 500
10,000
80,000 55,000
12,500
30,000 7,000
Minimum price (INR) Maximum price (INR)
Indian market for automotive sensors – highly fragmented
Advanced sensor technologies largely absent on Indian roads
Prices of sensors available online
Infrared sensors are estimated at INR 55,000 to INR 80,000
WGA: In sensors, what is relevant for India
RB: Indian market is highly fragmented and largely parking sensors – have created slide explaining this. Also, sensor prices available in India from trading companies, e-commerce etc. is compiled, but data is limited for certain sensors
Source: News Reports, Roland Berger
Trends and opportunities – Connectivity solutions
1) Highly automated driving
New slide (Taken from Hitec robotics deck)
26 20170818_Telematics_India2017_v01.pptx
Services is the fastest growing segment within telematics market with ~ 25% CAGR till 2022; significant potential exists
Services market growth in India CV telematics[USD m]
3719
174
48
185
90
378
5
2015 2022F
Installation Hardware Services
+19.6%
+24.8%
+21.4%
CAGR
2015-22
> Services market is an important component of overall telematics market accounting for ~ 40% share in 2015
> Services market is expected to grow at CAGR 25% till 2022 to a total market size of USD 174m within overall CV telematics market; separate potential within other segments such as PV, aircrafts etc.
> Services market value chain includes actors such as content provider, content aggregator, application providers and integrators
– Key examples of offerings include analytics based services for diagnostics, fleet management, fuel cost optimization, navigation etc. as well as infotainment/ entertainment services
Trends and opportunities – Driver assistance and related services
Source: 6WResearch, Secondary research, Roland Berger
CV telematics market growth by hardware, services and installation costs
New slide to show market potential
Corresponding data was not available for PV telematics market in India and hence have considered only CV
27 20170818_Telematics_India2017_v01.pptx
> Car sensors and/or connected devices
> OEM built in and dashboard integrated
> Brought-in (OBD, wired, smartphone with bluetooth etc.)
Various types of services can be offered by processing the data that is collected from vehicles as well as that from content providers
Opportunities in Indian market: Data processing and services
DATA COLLECTION
NETWORK CONNECTION
DATA PROCESSING
SERVICES
CONNECTED VEHICLE VALUE CHAIN
> One-way specific: GPS
> Two-ways:
– SIM card
– Wifi, cable etc.
> Can be local or central
> Involves
– Storage and encryption
– Enrichment of data
– Calculation/analytics to find insights
> Various services pertaining to:
– Security
– Navigation and info
– Entertainment
– Diagnosis
Source: GSMA, Secondary research, Roland Berger
Driver assistance and related services – Data processing and services WGA - How easy is it to get access to vehicle data?
Arent OEMs blocking this? How will it be done?
What are the future trends? What are market potentials of these areas?
NA – Vehicle data can be obtained through various mediums as explained in the next 2 reference slides. OEMs solutions have slow market penetration due to a variety of factors. In this context, a lot of 3rd party players are developing external retrofit solutions which is allowing them to capture the market in connectivity. OBD dongles has emerged as an attractive option
Added market trends and potential in previous slides
WGA - Why cant Indian companies play in this area (Services)?
NA – Changed. Data collection now goes into the previous section (connectivity solutions) and this section focuses on data collection and service offerings
Indian companies can and are playing in this area. Also added some examples in later slides
> Security
> Navigation and info
> Entertainment
> Air-diagnostics
> Air services and scheduling
> Payment
30 20170818_Telematics_India2017_v01.pptx
For example, future insurance services are expected to be based on data collected and processed from vehicles and nearby environment
Driver assistance and related services – Data processing and services
1 actual
accident
Hundreds of
risky events
A dozen
near accidents
> Age
> Sex
> Marital status
> Years experience
> Usage declared
> Mileage declared
> Territory garaged
> Insurance score
> Driving record
Today's model inputs Tomorrow's model inputs
All of today's inputs AND
> Time drive (hours)
> Time of day (late night/rush hour)
> Actual miles and type
> Weather
> Seat belt and phone usage
> Maintenance
> Driving style (aggressive, calm etc.)
> Actual claims
> Overall driver score
> Events
Few data points refreshed every year
Existing actuary experience is little help for this pricing model
>1000 data points recorded every second
A pricing reinvention?
Once every decade?
Few times a year?
Daily or hourly?
Source: Secondary research, Roland Berger
31 20170818_Telematics_India2017_v01.pptx
Similarly, services can also aim at improving vehicle performance by leveraging driver behavior data and preferences, example Google
Driver assistance and related services – Data processing and services
Predictive analytics for vehicle optimization: Google Ford example
Business model – who pays for it
> Subscription model (might be bundled together with other service
in systems like Sync)
Players and roles
> Google –Algorithm and analytics providers
> OEMs –System integrators
> Car owners –Users (and data gathering objects)
Description > Google API analyzes historical driving patterns and driver styles
to increase vehicle driving efficiency
Users and benefits
> Drivers/fleet operators: Better use of powertrain will lead to
increased energy efficiency
Driving history
Predictive algorithms
Optimize powertrain
Prediction
API
Information to optimize vehicle operations sent to car1)
1) Some information and algorithms will be saved locally
Source: Ford, Google, Roland Berger
Driving data transmitted to Google cloud database
32 20170818_Telematics_India2017_v01.pptx
Activity in this field in India is still limited – few efforts have been made till now, mostly in the field of safety and diagnosis
Driver assistance and related services – Data processing and services
Company Initiative/product description Sno.
1 Trak
N Tell
> Safety solutions which incorporates features such as real time tracking, panic buttons, remote engine immobilizer (for geo-fencing) and over speeding alerts
> Can be used to locate stranded occupants, location of stolen vehicles and provide help and medical assistance if needed
Selected initiatives
2 CarIQ > Analyses various data such as car condition (battery health, engine health), driving patterns, servicing info, location based information etc. to offer a variety of packages
> Offers maintenance related solutions which generate timely service reminders and guidance to nearest workshops which are integrated into the platform
3 Raksha
Safedrive
> Host of safety and emergency service related solutions
> Includes features such as smart panic button (one touch connectivity to trained road officers), impact detection (sense an impact and automatically call for help), friend and family notification in the event of accidents as well as a 24X7 center for coordinating emergency services
Source: Secondary research, Roland Berger
33 20170818_Telematics_India2017_v01.pptx
Content providers form an integrated part of the overall ecosystem by delivering customized content
Driver assistance and related services – Content providers
Integrator Profile
management
Application server
Policy management
OEM back office
Content providers
Apps
Standard interfaces
Service gateway
Data transport
Vehicle
Business model – who pays for it > E.g. subscription based model
> E.g. usage based model
Players and roles > Wireless service providers (data carrier)
> Third party suppliers (hardware/software platform developers)
> Content developers
Description > Will enable dynamic, customized content delivery for drivers
> Scalable solution that allows OEMs to stay connected with customers and offer new functionality and applications
Users and benefits > Drivers will be able to access content stored in the cloud like music playlists,
schedules, address books, favorite news
> OEMs can cater to wide variety of consumers' digital preferences and also create opportunities for additional revenue stream based on service offered
Adaptive architecture
Source: Secondary research, Roland Berger
34 20170818_Telematics_India2017_v01.pptx
Indian market poses a challenging environment for content providers – only few basic efforts at providing content till now
Selected initiatives in Indian market
Key challenges in Indian context
1 Low customer demand
> Customer awareness is still developing; overall willingness to spend on infotainment is still minimal
2 Lack of standards
> Limited clarity on best models to engage consumers
> Limited awareness of roles of integrators and content providers
3 High volume of data
> Large volumes of content to be collected given India's population – scale is a major inhibitor
1 MapmyIndia has introduced interactive and social media interfaces allowing users to get access to real-time information as well as social navigation features such as Add/edit a place, writing reviews etc.
2 Harman Automotive navigation solutions show points of interest as well as locations of favorite hotels and restaurants along the way
3 Multiple companies such as CarIQ, MapmyIndia etc. have introduced offerings which analyze driving patterns and behavior to report usage statistics (times of rash driving, idling etc.), trip summaries (mileage, speeds, routes etc.)
Source: Secondary research, Roland Berger
Driver assistance and related services – Content providers
Source for challenges
Taken from word document sent by you titled "Article_Connected cars and connected services in India"
Excerpt below
"One of the major factors holding back content aggregators, is scale. Also, unlike developed markets, content aggregators don’t find the Indian market affluent enough to invest, as customer willingness to spend on infotainment is quite minimal. One other key inhibitor in bringing innovative contents to the vehicle is the lack of a standard for content providers. In most cases, auto-makers and content providers do not know the best business model to engage with"
35 20170818_Telematics_India2017_v01.pptx
Lastly, connected vehicle system requires huge amounts of information – IT service providers can leverage this opportunity
Trends and opportunities – IT service providers
Fat clients with local storage and dedicated security software for the PC, server
Focus on endpoint protection/security
Past
Many interconnected devices
Data storage and processing power move to the cloud
Security needs to become an integral part of any network and cloud environment
Future Opportunities for service providers
> Manage entire information stack between consumers, OEMs and other service providers
– Infosys, which works with Daimler will manage its global data centers including data channeled from connected cars
> Provide cybersecurity solutions to ensure data integrity
Source: Secondary research, Roland Berger
37 20170818_Telematics_India2017_v01.pptx
Contact us
Your contact at Roland Berger
Jeffry Jacob Principal Roland Berger E-mail: [email protected] Mobile: +919920630131
Office address: Mumbai
702, VIBGYOR Tower,
Bandra Kurla Complex,
Mumbai - 400 051
Delhi (Gurgaon)
Level 18, DLF Cyber City,
Building No. 5, Tower A,
Phase III, Gurgaon - 122 002
Pune
4th Floor, Alaina Building,
Lane 8, Koregaon Park,
Pune – 411 001
Chennai
Level 5, Tamarai Tech Park,
S.P. Plot No.16-19 & 20-A,
Thiru Vi Ka Industrial Estate,
Inner Ring Road, Guindy,
Chennai – 600032